Fiduciary Duties

In order to comprehend what constitutes a breach of fiduciary duty, it is necessary to have an understanding of who is considered a fiduciary and the circumstances in which a fiduciary owes a duty.

A fiduciary is an individual or organization entrusted with significant trust to manage another's assets and interests. Fiduciaries are bound to act in the best interests of their clients and are prohibited from considering their own interests when making decisions or providing advice. They have a duty of loyalty and care and are required to act in good faith while safeguarding their clients' interests.

The duty of a fiduciary to act in the best interest of another can arise either through express or implied means. For instance, statutory provisions define express fiduciary duties for attorneys, stockbrokers, trustees, corporate directors, and partners, among others.

An implied fiduciary duty emerges from unique circumstances where the parties have a confidential or trusting relationship with one another. One example of an implied fiduciary duty could be a situation where an individual consults with a financial advisor on a regular basis for many years, confiding in the advisor about their personal and financial affairs and relying on the advisor's expertise to make important investment decisions. In such a scenario, the financial advisor may be deemed to owe an implied fiduciary duty to act in the client's best interest, given the confidential and trusting relationship between them.

Under Florida law, a breach of fiduciary duty claim can proceed in court if the plaintiff can establish that one party has assumed a position of trust and obligation to protect a more vulnerable party.

Examples of Fiduciaries

What Constitutes a Breach of Fiduciary Duty?

The Campbell Law Group P.A. is located at 2121 Ponce de León Suite 540, Coral Gables, FL 33134.