Tag Archives: breach of fiduciary duty
What Are the Damages for a Trustee’s Breach of Fiduciary Duty in California?
TRUSTEES HAVE FIDUCIARY DUTIES TO THE BENEFICIARIES OF A TRUST Trustees are agents who hold and manage manage the assets of a trust (the trust estate) on behalf of the beneficiaries. The trustee owes fiduciary duties to both the current beneficiaries (those with current interests in the trust estate) and remainder beneficiaries (those whose interest in the… Read More »
What is the “Business Judgment Rule”?
THE BUSINESS JUDGMENT RULE WAS DESIGNED TO PROTECT CORPORATE OFFICERS The “Business Judgment Rule” is a legal principle that protects the officers and directors of corporate entities (for example, a corporation or LLC) from liability for certain kinds of actions (when acting in their official roles, on behalf of the entity). In simplified terms,… Read More »
Who Has a Fiduciary Duty Under California Law?
WHEN DOES A FIDUCIARY DUTY ARISE? Fiduciary relationships arise in several situations, including attorney-client relationships and the relationship between a trustee and a trust/beneficiaries. Generally speaking, fiduciary relationships involve confidentiality, trust, integrity, and a situation where a beneficiary is relying on the expertise, special skills, and/or integrity of someone else. However, a fiduciary duty… Read More »
Who Can be Sued for Breach of Fiduciary Duty?
Someone who owes, and breaches, a fiduciary duty in a manner that causes injury to the beneficiary.* *As long as the legal elements of the claim are met. BREACH OF FIDUCIARY DUTY IS A TORT IN CALIFORNIA Under California law, breach of a fiduciary duty is a tort (a civil wrong). When the required… Read More »
Is an Attorney-Client Relationship a Fiduciary Relationship?
WHAT IS AN ATTORNEY-CLIENT RELATIONSHIP? An attorney-client relationship is the term for the official legal relationship between a lawyer and a client. It is a relationship of trust, and has special, legally-recognized characteristics. For example, attorney-client privilege arises only where an attorney-client relationship exists. The attorney-client relationship also creates legal rights and obligations for the lawyer –… Read More »
When is a Lawyer Liable for Breach of Fiduciary Duty to a Client?
IS BREACH OF FIDUCIARY DUTY THE SAME AS LEGAL MALPRACTICE? Breach of fiduciary duty is not the same as legal malpractice or professional negligence. While both are legally recognized wrongs that fall within the scope of tort law, breach of fiduciary duty is a separate tort, with separate remedies, than those available for professional negligence. WHAT… Read More »
Lawyers and Breach of Fiduciary Duty
In addition to malpractice (professional negligence) lawyers can be held liable to clients for “breach of fiduciary duty,” which is a separate (but often related) cause of action. The elements of the action for breach of fiduciary duty are: 1. The lawyer must owe (or have owed) a fiduciary duty to the plaintiff. 2. The… Read More »
