PROFESSIONAL ETHICS ā Power of Attorney ā Fiduciary Relationship with Claimants
Principle Statement
By accepting a Power of Attorney from representatives of a community which expressly obliges the legal practitioner to pay compensation money to all claimants individually, the legal practitioner places himself in a fiduciary position vis-Ć -vis each named claimant and is accountable to each and every one of them individually.
Ratio Decidendi (Source)
Per Chukwuma-Eneh, JSC, in Iteogu v. LPDC (2009) NLC-123-190-2006(SC) at p. 21; Paras DāE.
"By accepting a Power of Attorney from representatives of a community which expressly obliges the legal practitioner to pay compensation money to all claimants individually, the legal practitioner places himself in a fiduciary position vis-Ć -vis each named claimant and is accountable to each and every one of them individually."
Explanation / Scope
This principle establishes that a legal practitioner who accepts a power of attorney obliging them to pay compensation to individual claimants enters into a fiduciary relationship with each claimant. The practitioner is accountable to each claimant individually. The principle applies where a power of attorney creates payment obligations. It ensures that legal practitioners act with utmost good faith. The principle reflects the fiduciary nature of such relationships. It prevents practitioners from avoiding accountability to individual beneficiaries. The court must determine if the power of attorney creates fiduciary duties. The principle promotes transparency and accountability.
