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Do Banks Owe Their Borrowers A Fiduciary Duty? - Finance and Banking

To print this article, all you need is to be registered or login on Mondaq.com. There has been a recent trend in Texas litigation of borrowers asserting claims or counterclaims against their lenders for breach of fiduciary duty. The first thing that a plaintiff has to establish in such a claim is that the lender actually owed it a fiduciary duty-a serious legal relationship that only arises in certain defined circumstances. So under what circumstances does a lender owe such a duty to its borrowers? The law, at first glance, would appear to be straightforward. Texas courts have held that the relationship between a

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