Search Site
Menu
What is Fiduciary Duty?


In times of loss, it is very confusing and incredibly difficult and that is before finances and the trust even gets involved. Once money is involved, it is a very different kind of situation. Often times, trusts are mismanaged. That is the shorter definition of what is called “breach of fiduciary duty” but it is a lot more complex than that. There are different statutes depending on the state and lots of intricacies that are best left to experienced attorneys. Here is a brief overview of what kind of complications can arise in a breach of fiduciary duty case. 


Breach of fiduciary duty is a broad concept that may arise in many differ-
ent situations. However, three questions necessarily arise when any breach
of fiduciary duty is alleged:

  1. Did a fiduciary relationship exist at the time of the alleged mis-
    conduct?

  2. Ifso,whatwasthescopeoftherelationship?

  3. Wasthereabreachofthedutiesthatarosewithinthescopeofthe

    relationship?

There are two types of fiduciary relationships:

  1. Thosecreatedunderthelaw,(a)asappliedtoparticularrelation-
    ships governed by statute (such as partner and partnership) or by
    legal proceedings (such as administrator and heir), or (b) as ap-
    plied to contractual relationships (such as principal and agent or
    attorney and client); and

  2. Those that are created by case law as a result of the factual cir-
    cumstances underlying the relationship of the parties and the trans-
    actions at issue. These types of unique fiduciary duties occur in
    various factual circumstances.
    1 While there is no definitive de-
    scription of a fiduciary relationship, one source describes it as:

[T]he acting of one person for another; the having and the exercis-
ing of influence over one person by another; the reposing of con-
fidence by one person in another; the dominance of one person by
another; the inequality of the parties; and the dependence of one
person upon another. In addition, courts have considered weak-
ness of age, mental strength, business intelligence, knowledge of
the facts involved or other conditions giving to one an advantage
over the other.
2

Read more at: https://pi.vu/66-Y 

Leave a Reply

Your email address will not be published. Required fields are marked *

What Does An AV Rating Mean?
An AV® Rating, signifies that the lawyer has reached the heights of professional excellence. He or she has usually practiced law for a number of years, and is recognized for the highest levels of skill and integrity.

Office Location
  • Scottsdale Office
    6720 N. Scottsdale Road
    Suite 285
    Scottsdale, Arizona 85253
    Phone: 480-483-2178
    Fax: 480-367-0691