Opinion ID: 1976538
Heading Depth: 1
Heading Rank: 2

Heading: Common Law Fiduciary Duty of Fair Dealing

Text: The trial court refused to submit to the jury Murray's claim that Webber breached a common law fiduciary duty of fair dealing in terminating Murray. Specifically, Murray sought an instruction that in terminating the contract, [Webber] must act reasonably and in a way so as to minimize the harm and disadvantage to the franchisee whose business [it] is cutting off. A limited number of jurisdictions have recognized a fiduciary duty in a franchise relationship. E.g., Arnott v. American Oil Co., 609 F.2d 873, 884 (8th Cir. 1979) cert. den., 446 U.S. 918, 100 S.Ct. 1852, 64 L.Ed.2d 272 (1980); ABA Distributors, Inc. v. Adolph Coors Co., 542 F.Supp. 1272, 1285-86 (W.D.Mo.,1982). But see Murphy v. White Hen Pantry Co., 691 F.2d 350, 355-356 (7th Cir.1982). Maine, however, recognizes a fiduciary obligation only when the relations between two persons are such that one is completely dependent and relies upon and necessarily reposes confidence in the other. Small, Adm'r v. Nelson, 137 Me. 178, 182, 16 A.2d 473, 475 (1940). See also Ruebsamen v. Maddocks, 340 A.2d 31, 35 (Me.1975); Rosenthal v. Rosenthal, 543 A.2d 348, 351 (Me.1988). The evidence here showed no such relationship, but rather only a conventional business deal. Certainly one party was economically stronger than the other, but that is often the case in a business deal, and not the basis for a finding of a relationship of confidence. See Clappison v. Foley, 148 Me. 492, 497-99, 96 A.2d 325, 327-28 (1953). Since there was no factual showing of the fiduciary or confidential relationship that our cases have required before imposing the extra obligation, the trial judge properly declined Murray's proposed instruction.