02-06-23 MTParners
Recently, Binh Thanh Import Export Trading Joint Stock Company (Gilimex) filed a lawsuit against Amazon.com Services LLC (Amazon Robotic) at the Supreme Court of New York State.
Gilimex is one of the largest garment manufacturers in Vietnam, however, the dispute between Gilimex and Amazon Robotic is not related to this product, but related to the Plastic Shelf product. This is a product that Gilimex produces and supplies to Amazon Robotic to serve the activities of arranging and transporting goods in Amazon Robotic’s warehouses.
According to Gilimex’s lawsuit, in addition to many violations of Amazon Robotic that have been listed, there is a notable violation of Breach of Fiduciary Duty. So, what is this violation? how to apply the violation? let’s find out together.
Fiduciary Duty can be understood as the duty/responsibility of trust, this duty is both ethical and legal. Accordingly, the trustee must act, within the scope permitted by law, to ensure the best interests of the trustor. Fiduciary Duty appears in many legal relationships such as: board of directors and company, lawyer and client, principal and agent, broker and brokered party, etc.
Fiduciary Duty under English and American law consists of 3 main duties: Duty of care (The duty to be careful and diligent when performing the entrusted work), Duty loyalty (The duty to be loyal to the interests of the trustor, not to benefit oneself) and Duty of good faith (The duty to bring and promote the interests of the trustor, and not to violate the law). In addition to the main elements mentioned above, Fiduciary Duty also includes other duties such as: Duty of confidentiality (The duty to keep confidential), Duty of prudence (The duty to act properly), Duty of disclosure (The duty to provide information).
Fiduciary Duty can be agreed by the parties in the contract or imposed by law when a legal relationship arises between the two parties. When found to have breached the duty of trust, the violator must compensate for the losses to the injured party, in addition to other penalties for the violator (if agreed).
Current Vietnamese law does not have a definition of fiduciary duty like English and American law. However, the content of the duty is scattered in various codes and specialized laws: civil code, enterprise law, investment law, commercial law, etc.
Above are some basic information about Fiduciary Duty. MT & Partners hope that the article will bring useful knowledge to our readers.
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