Legal Definitions - great diligence

Great diligence refers to an exceptionally high standard of care, caution, and effort that a person or entity is legally required to exercise in certain situations. It goes beyond what an ordinary, prudent person would do and demands a very scrupulous and attentive approach to prevent harm, protect interests, or fulfill obligations. This heightened level of care is typically expected when there are significant risks involved, substantial trust has been placed, or the potential for serious consequences is high.

• Example 1: A Trustee Managing a Special Needs Trust

  Imagine a trustee who is responsible for managing a trust fund established for an adult with severe disabilities. This trust is the sole source of financial support for the individual's medical care, housing, and daily needs. The trustee is expected to exercise great diligence in managing these funds. This means not only investing prudently but also thoroughly researching all potential investments, regularly monitoring market performance, ensuring all expenditures directly benefit the beneficiary, avoiding any conflicts of interest, and meticulously documenting every financial transaction. They must go above and beyond what an average person might do with their own money, anticipating potential risks and ensuring the long-term stability of the trust.

  This illustrates great diligence because the trustee is entrusted with the entire financial well-being of a vulnerable individual, requiring an exceptionally high degree of care, loyalty, and foresight in managing the funds to ensure their sustained support.

• Example 2: A Pharmaceutical Company Developing a New Vaccine

  Consider a pharmaceutical company in the final stages of developing a new vaccine for a widespread infectious disease. Before it can be approved for public use, the company must demonstrate great diligence in its research, testing, and manufacturing processes. This involves conducting extensive clinical trials with diverse populations, meticulously analyzing all safety data and potential side effects, ensuring the purity and consistency of every batch produced, and adhering to the strictest regulatory standards. They cannot cut corners or rely on minimal testing; every step must be executed with the utmost precision and caution to ensure the vaccine is both safe and effective for millions of people.

  This demonstrates great diligence because the potential impact on public health is immense, requiring the company to exercise an extraordinarily high level of care, scientific rigor, and ethical responsibility to prevent harm and ensure the product's efficacy.

• Example 3: A Company Transporting Highly Flammable Chemicals

  A specialized logistics company is hired to transport large quantities of highly flammable industrial chemicals across state lines. Due to the inherent dangers, the company is expected to exercise great diligence. This would involve using specially designed and maintained vehicles, employing drivers with advanced training in handling hazardous materials, meticulously planning routes to avoid densely populated areas, implementing robust emergency response protocols, and ensuring all containers are securely sealed and monitored for leaks or temperature fluctuations. They cannot simply use standard shipping practices; every precaution must be taken to prevent accidents, spills, or explosions that could cause widespread environmental damage or endanger lives.

  This example illustrates great diligence because the nature of the cargo poses extreme risks, compelling the company to implement the highest possible level of safety measures, training, and operational oversight to prevent catastrophic harm.