Umbaugh Pole Building Co. v. Scott

The first proposition of law advanced by the appellant is worded as follows:

“A lending institution does not have any fiduciary •duty to its debtor even if ‘advice and counselling’ are offered to the debtor by the institution.”

Both on the record and on the law we find that said proposition of law, to the extent hereinafter set forth, is well taken. The relationship of debtor and creditor without more is not a fiduciary relationship. A fiduciary relationship may be created out of an informal relationship, but this is done only when both parties understand that a special trust or confidence has…