Chapter 3. Confidential Information

"3.1. INTRODUCTIONThis chapter discusses briefly the common law concepts of fiduciary relationship, constructive trust, and breach of confidence. Following a discussion of confidentiality agreements, the last section of the chapter compares and comments on two common law cases, the LAC Case and the Metalore Case. Civil law readers should not ignore this chapter or § 3.5. the comparison as, to a large extent, the concepts and comments are universal, even though the procedures for applying them may vary.1It should be appreciated that, regardless of the legal system, if the Court sees that a wrong has been done, it will attempt to right that wrong, either by awarding monetary damages against the wrong-doer to compensate the injured party or by attempting to make the injured party whole again by such means as negating an agreement (as in the Metalore Case) or returning property to a wronged party (as in the LAC Case). The methodology for accomplishing either of these results will vary with the jurisdiction, and the two are not mutually exclusive.These two Ontario cases have been chosen, not because they are the only ones available – they certainly are not – but because both are relatively well known within the minerals industry and they deal with problems that may face any explorationist (although it is to be hoped that the facts of the Metalore Case do not represent “normal” behaviour). Each judgment offers useful guidelines, as well as insight into a judge’s approach to problems, the type of information he expects to receive, how his mind works, and, particularly in the Court of Appeal judgment in the Metalore Case, how he might reason through and “justify” his decisions.3.2. SOME LEGAL CONCEPTS In order to appreciate some of the matters discussed in this chapter, it is necessary to have some idea of the common law considerations of fiduciary relationships, constructive trust, and breach of confidence."