How To Prove A California Breach of Fiduciary Duty Claim

In California, a claim of Breach of Fiduciary Duty is defined as:
A Breach of Fiduciary Duty occurs when one party fails to uphold their obligations to act in best interests of another in which there is a fiduciary relationship.
It simply means:
When one party has a legal obligation to act in the best interests of another party but fails to do so.
There are 3 elements of the claim:
- Element 1. There exists a fiduciary relationship (a legal or ethical relationship of trust) between the parties. A fiduciary relationship exists when one party places trust in another to act in their best interest, such as a lawyer with a client or a trustee with a beneficiary, creating a legal obligation for the trusted party to prioritize the other’s needs above their own.
Facts that might support this element look like:
* The parties entered into a formal agreement that explicitly designated one party as the trustee responsible for managing the assets of the other party.
* One party relied on the expertise and advice of the other party in making significant financial decisions, creating a dependency that established trust.
* The relationship involved one party providing confidential information to the other, expecting it to be handled with care and integrity.
* One party had a history of managing the financial affairs of the other, reinforcing the expectation of loyalty and good faith.
* The parties shared a long-standing personal relationship, which fostered an environment of trust and reliance on the other’s judgment. - Element 2. The defendant breached the fiduciary duty. The defendant failed to act in the best interest of someone they had a special trust relationship with, putting their own interests ahead of that person’s needs or well-being.
Facts that might support this element look like:
* The defendant failed to disclose a conflict of interest that directly affected the plaintiff’s financial interests.
* The defendant engaged in self-dealing by diverting business opportunities away from the plaintiff for personal gain.
* The defendant neglected to provide the plaintiff with essential information necessary for making informed decisions.
* The defendant acted in a manner that prioritized their own interests over the best interests of the plaintiff.
* The defendant did not seek the plaintiff’s consent before making significant financial decisions that impacted their partnership. - Element 3. The plaintiff suffered damages as a result of the breach of duty. The plaintiff experienced harm or loss because the person they trusted to act in their best interest failed to fulfill their responsibilities, leading to negative consequences for the plaintiff.
Facts that might support this element look like:
* The plaintiff incurred significant financial losses due to the defendant’s failure to act in the plaintiff’s best interest.
* The plaintiff was forced to sell assets at a loss because the defendant mismanaged investment opportunities.
* The plaintiff experienced emotional distress and anxiety as a direct result of the defendant’s breach of trust.
* The plaintiff lost potential income from business opportunities that were mishandled by the defendant.
* The plaintiff had to spend additional funds on legal fees to rectify the consequences of the defendant’s actions.
(See Stanley v. Richmond, 35 Cal. App. 4th 1070 (C.A.. Court of Appeals 1995).)
If you’re in court without a lawyer and plan to assert a Claim of Breach of Fiduciary Duty, having a Personal Practice of Law at Courtroom5 is essential. You’ll need to make informed decisions about what to file at each phase of your case and prepare legal documents supported by thorough legal research and a strong analysis of the facts. Equip yourself with the tools and knowledge to effectively navigate your legal journey.
Prove Your CA Breach of Fiduciary Duty Claim
U.S. Civil Cases Only