Opinion ID: 901809
Heading Depth: 1
Heading Rank: 8

Heading: Existence of a fiduciary duty

Text: [¶ 45.] Coles next ask this Court to consider imposing a fiduciary duty on insurance agents who solicit applications for insurance. The trial court rejected Coles' assertion that a fiduciary relationship existed between Tschetter and Coles. [¶ 46.] The existence of a fiduciary relationship is an issue of law. Cleveland v. BDL Enter., Inc., 2003 SD 54, ¶ 18, 663 N.W.2d 212, 218. A fiduciary relationship requires one to have, in addition to `confidence of the one in the other,' the existence of `a certain inequality, dependence, weakness of age, of mental strength, business intelligence, knowledge of the facts involved, or other conditions, giving to one advantage over the other. ' Garrett v. BankWest, Inc., 459 N.W.2d 833, 838 (S.D.1990) (quoting Yuster v. Keefe, 46 Ind.App. 460, 466, 90 N.E. 920 (1910)) (emphasis original). As such, South Dakota law reflects that most commercial or business relationships do not rise to the level of a fiduciary relationship when the parties are dealing over an arms-length transaction. High Plains Genetics Research, Inc. v. J K Mill-Iron Ranch, 535 N.W.2d 839, 842 (S.D.1995) (citing Taggart v. Ford Motor Credit Co., 462 N.W.2d 493, 500 (S.D.1990)). [¶ 47.] Coles entered into an arms-length transaction for the purchase of health insurance. They testified that they had in the past reviewed and selected health insurance plans through Margie's employer. They also testified that they had considered and rejected health insurance through Dellas's employer. Coles researched and reviewed several other policies, including policies offered through State Farm. Coles determined these other plans were more expensive than the Wellmark plan. They did so without demonstrating any weakness of age, of mental strength, business intelligence, knowledge of the facts involved, or other conditions, giving to one advantage over the other, as compared to the agents and benefits managers they interviewed. There is nothing in the record to suggest the existence of a fiduciary relationship between Tschetter and Coles.