Civil Litigation
Breach of Fiduciary Duty in California
What Is Fiduciary Duty?
A fiduciary is someone who holds a position of trust and must act in the best interest of another. Common fiduciaries include: trustees of trusts, executors of estates, corporate directors and officers, business partners, attorneys, and financial advisors.
Duties Owed
- Duty of care: Act with reasonable care and skill
- Duty of loyalty: Put the beneficiary\'s interests first; avoid self-dealing
- Duty of good faith: Act honestly and with proper motive
Common Breaches
Examples: trustee using trust assets for personal benefit, partner diverting business opportunities, officer engaging in insider trading, executor mismanaging estate funds. Each case turns on the specific facts and the applicable standard.
Statute of Limitations
Breach of fiduciary duty is often subject to a 4-year statute of limitations under CCP 343, but it can vary. For fraud or concealment, the discovery rule may apply. Consult an attorney to determine the deadline for your case.
Frequently Asked Questions
What is fiduciary duty?
A fiduciary duty is a legal obligation to act in the best interest of another party. Trustees, corporate officers, partners, agents, and attorneys owe fiduciary duties. Breach occurs when they put their own interests ahead of the beneficiary or engage in self-dealing, fraud, or neglect.
What are the elements of breach of fiduciary duty?
You must show: (1) existence of a fiduciary relationship, (2) breach of the fiduciary duty, (3) causation, and (4) damages. The standard of care depends on the relationship—trustees must act as a "prudent person" would; corporate officers owe duties of care and loyalty.
What remedies are available?
Remedies may include compensatory damages, disgorgement of profits, constructive trust (return of wrongfully taken property), accounting, and in some cases punitive damages. The court may also remove the fiduciary.
Need Legal Assistance?
Contact the Law Offices of Steven A. Alexander for a free consultation. Offices in Santa Ana and Fresno. Bilingual (English/Spanish).
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