Newport Beach
Newport Beach
Los Angeles
Las Vegas
San Diego
Walnut Creek
North San Diego
(949)221-1000 (949)221-1001 20320 S.W. Birch Street Second Floor, Newport Beach CA 92660
(818)712-9800 (818)712-9900 21215 Burbank Blvd. Suite 500, Woodland Hills CA 91367
(702)258-6665 (702)258-6662 1160 N Town Center Dr Suite 250, Las Vegas NV 89144
(619)236-0048 (619)236-0047 501 West Broadway Suite 1700, San Diego CA 92101
(510)540-4881 (510)540-4889 2033 N. Main St. Suite 600, Walnut Creek, Ca 94596
(602)274-1204 (602)274-1205 8950 South 52nd St Suite 201, Tempe AZ 85284
(775)440-2389 (775) 440-2390 50 West Liberty Suite 1090, Reno NV 89501
(720) 779-2500 (303)256-6205 1999 Broadway, Suite 3250, Denver, Colorado 80202
(760)557-2940 (619)389-2993 760 Garden View Ct. Unit #220 Encinitas, CA 92024
(949) 221-1000 (949) 221-1001 1910 Pacific Avenue, Suite 2000 Dallas, Texas 75201

Thousands of ordinary people are thrown into the role of a “fiduciary” every single day. A person in a fiduciary relationship is under a duty to act for the benefit of the other as to matters within the scope of the relationship. A fiduciary duty, in the eyes of the law, begins once the fiduciary knowingly acts on behalf of the beneficiary, and in their benefit, or upon acknowledgment of the fiduciary duty by entering an official relationship that imposes said rules. 

Fiduciary relationships exist in various settings, such as: 

  • Employer to employee; 
  • Accountant to client; 
  • Attorney to client; 
  • Principal to agent; 
  • Executor to heir; 
  • Guardian to ward; and
  • Trustee to beneficiary.

The nature and extent of the duties imposed differ somewhat depending on the relationship. Nonetheless, knowing how to identify a breach of fiduciary duty allows a person to react quickly and prevent further damage. It is legally permitted for the wronged individual to sue for and receive damages as well as any profits made by the fiduciary in breach of their fiduciary duty. 

A breach of fiduciary duty can be any behavior that is not in the best interest of the client, ward, etc.; any action that solely benefits the fiduciary; or any failure on part of the fiduciary to be completely transparent with important information. 

The plaintiff making a claim against a party for a breach of their duties must prove that a fiduciary relationship existed to begin with, that the defendant breached their fiduciary duty, and finally, that said breach was damaging to the plaintiff. The breach is only actionable if there is proof that the plaintiff suffered damages as a result of the breach. 

By ensuring a basic understanding of your fiduciary duty and what behavior is expected of you, you will be more likely to prevent any breaches of your duty. If you suspect a breach of fiduciary duty, consider seeking a legal remedy soon. 

If you have any questions regarding your rights as a Fiduciary, Trustee, or Beneficiary, it is important to meet with a skilled attorney to learn about what options may be available to you.