Lesson Viewed
Fiduciary Duties: Meinhard v. Salmon
The classic rhetoric of Cardozo in Meinhard v. Salmon hides a delicate economic intuition justifying broad fiduciary obligations. This lesson parses closely the text of the dissent and the majority to recognize the idiosyncratic facts that make this a pivotal case. The focus is on the economic ramifications of Cardozo's choice.
Learning Outcomes
On completion of the lesson, the student will be able to:
- State the majority decision in Meinhard v. Salmon.
- Explain the reasoning of the majority decision.
- List the major points of the dissent.
- Analyze whether the broad fiduciary obligations of Cardozo (majority) are better than the narrower fiduciary obligations of Andrews (dissent)?
- Examine the application of Coasean irrelevance.
- Examine the role of transaction costs.