Tag Archives: fiduciary duty
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 »
When Has a California Trustee Breached His or Her Fiduciary Duty?
FIDUCIARIES MUST ACT WITH “UTMOST GOOD FAITH” A fiduciary, like the trustee of a trust, must act with the highest degree of good faith, and for the benefit of the person or entity to whom the fiduciary owes the duty. In the case of a trustee, this means managing the trust, and the trust… 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 »
