How do I defend a claim of breach of fiduciary duty?
Fiduciaries, such as trustees, owe two main duties to their clients: a duty of loyalty and a duty of care. The duty of loyalty requires that fiduciaries act solely in the interest of their clients, rather than in their own interest. Thus fiduciaries must not derive any direct or indirect profit from their position, and must avoid potential conflicts of interest. The duty of care requires that fiduciaries perform their functions with a high level of competence and thoroughness, in accordance with industry standards. The elements of a cause of action for breach of fiduciary duty are: • Plaintiff and Defendant share a relationship whereby: (a) Plaintiff reposes trust and confidence in Defendant, and (b) Defendant undertakes such trust and assumes a duty to advise, counsel and/or protect Plaintiff; • Defendant breaches its duties to Plaintiff; and • Plaintiff suffers damages. The elements of a claim for breach of fiduciary duty are not fixed as the claim may arise from virtually any case w
