How To Prove A Florida Breach of Fiduciary Duty Claim
In Florida, a claim of Breach of Fiduciary Duty is defined as:
A Breach of Fiduciary Duty occurs when a person in a position of trust and confidence, known as a fiduciary, fails to act in the best interests of another party to whom they owe a duty. The fiduciary relationship is characterized by a high standard of loyalty, good faith, and honesty. A breach of fiduciary duty involves a violation of the trust and confidence placed in the fiduciary.
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 4 elements of the claim:
- Element 1. There was a fiduciary relationship between the plaintiff and the defendant. A fiduciary relationship means that one person, the plaintiff, trusted another person, the defendant, to act in their best interest, often because of a special bond, like a partnership or a financial advisor-client relationship.
Facts that might support this element look like:
* The plaintiff entrusted the defendant with significant financial decisions, relying on the defendant’s expertise and judgment.
* The defendant had access to the plaintiff’s confidential information, which was not shared with any third parties.
* The plaintiff and defendant had a long-standing relationship built on trust, where the defendant acted as a financial advisor.
* The defendant was in a position of power over the plaintiff’s assets, creating a dependency on the defendant’s guidance.
* The plaintiff relied on the defendant’s advice to make critical investment choices, demonstrating a reliance on the defendant’s superior knowledge. - Element 2. The defendant breached his or her fiduciary duty. The defendant failed to act in the best interest of someone they were supposed to protect or serve, putting their own interests ahead of that person’s needs or rights.
Facts that might support this element look like:
* The defendant failed to disclose a conflict of interest that influenced their decision-making on behalf of the plaintiff.
* The defendant misappropriated funds from the trust account for personal use, violating their obligation to act in the best interest of the beneficiaries.
* The defendant neglected to provide timely and accurate financial reports, hindering the plaintiff’s ability to make informed decisions.
* The defendant engaged in self-dealing by entering into transactions that benefited themselves at the expense of the plaintiff.
* The defendant did not seek the plaintiff’s consent before making significant financial decisions, breaching their duty of loyalty and care. - Element 3. The plaintiff was Injured. The plaintiff was injured means that the person bringing the lawsuit suffered some kind of harm or loss, whether financial, emotional, or physical, as a direct result of the other party’s failure to fulfill their trusted responsibilities.
Facts that might support this element look like:
* The plaintiff suffered significant financial losses due to the defendant’s mismanagement of trust assets.
* The plaintiff incurred medical expenses as a direct result of stress caused by the defendant’s breach of fiduciary duty.
* The plaintiff lost a lucrative business opportunity because the defendant failed to act in the plaintiff’s best interest.
* The plaintiff experienced emotional distress and anxiety stemming from the defendant’s actions, impacting their daily life.
* The plaintiff was forced to seek legal counsel to address the consequences of the defendant’s breach, incurring additional costs. - Element 4. The defendant’s breach was the proximate cause of the plaintiff’s injury. The defendant’s failure to fulfill their duty directly led to the plaintiff’s harm, meaning that the injury was a foreseeable result of the defendant’s actions or inactions.
Facts that might support this element look like:
* The defendant failed to disclose a significant conflict of interest that directly impacted the plaintiff’s investment decisions.
* The defendant’s negligence in managing the plaintiff’s assets resulted in substantial financial losses that could have been avoided.
* The defendant’s actions led to a breach of trust, causing the plaintiff to suffer emotional distress and financial harm.
* The plaintiff relied on the defendant’s expertise, and the breach of fiduciary duty directly resulted in the plaintiff’s inability to recover lost funds.
* The defendant’s misrepresentation of material facts caused the plaintiff to make uninformed decisions, leading to significant injury.
(See Kelly v. Lodwick, Fla: Dist. Court of Appeals, 4th Dist. 2011. Gracey v. Eaker, 837 So. 2d 348, 353 (Fla. 2002).)
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 FL Breach of Fiduciary Duty Claim
U.S. Civil Cases Only