tort law · claim

Elements of Breach Of Fiduciary Duty

Quick Answer

What are the elements of Breach Of Fiduciary Duty?

Breach of fiduciary duty occurs when a fiduciary intentionally or negligently fails to act in the best interests of the party to whom they owe the duty. This can involve a range of relationships, including those between trustors and trustees, corporate directors and shareholders, or attorneys and clients.

Required Elements

1. Existence of a fiduciary duty

A fiduciary duty must be established between the parties involved.

What to prove: The plaintiff must demonstrate that a fiduciary relationship existed, characterized by trust and reliance.

2. Breach of that duty

The fiduciary must have breached their duty to the beneficiary.

What to prove: The plaintiff must show that the fiduciary acted in a manner that was contrary to the interests of the party owed the fiduciary duty.

3. Causation

There must be a direct link between the breach and the resulting harm.

What to prove: The plaintiff must prove that the fiduciary’s breach caused actual harm or damages.

4. Damages

The plaintiff must have suffered damages as a result of the breach.

What to prove: The plaintiff must quantify the losses incurred due to the breach of duty.

Burden of Proof

The plaintiff bears the burden of proof by a preponderance of the evidence standard.

Available Defenses
  • Statute of limitations
  • Consent of the beneficiary
Common Fact Patterns
  • An attorney mismanaging client funds or conflicts of interest.
  • A corporate director prioritizing personal interests over shareholder interests.
Exam Tip

Expect hypothetical scenarios involving fiduciary relationships, and be prepared to identify breaches and resultant damages. Analyzing the relationships and duties will be crucial.

Key Cases
  • Meinhard v. Salmon, 249 N.Y. 458 (1928)
  • In re Estate of Brant, 116 Cal.App.4th 1370 (2004)
  • Gordon v. Gordon, 112 Wn.2d 894 (1989)

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