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FRAUD I BREACH OF FIDUCIARY DUTY – What Fiduciary Duties are Owed? A Fiduciary owes the Duty of Confidentiality. What happens if a Fiduciary Breaches their Duty of Confidentiality?

  1. Home / Fiduciary Duty / FRAUD I BREACH OF FIDUCIARY DUTY – What Fiduciary Duties are Owed? A Fiduciary owes the Duty of Confidentiality. What happens if a Fiduciary Breaches their Duty of Confidentiality?
FRAUD I BREACH OF FIDUCIARY DUTY – What Fiduciary Duties are Owed? A Fiduciary owes the Duty of Confidentiality. What happens if a Fiduciary Breaches their Duty of Confidentiality? January 22, 2020 A Fiduciary owes a Duty of Confidentiality A fiduciary is an individual or corporation to whom property or power is entrusted for the benefit of a principal. A fiduciary is in a confidential relationship with a principal and duties of trust are owed to the principal. While not explicitly expressed, it is understood that a principal can reasonable rely and trust a fiduciary, because the fiduciary owes a Duty of Confidentiality. What Is a Duty of Confidentiality? “The law of confidential relationships governs duties of trust that one is not obligated to assume. Once a person commits himself to a confidential relationship, the law requires him to fulfill the duties attendant to the relationship. Confidential relations protect the trust that is implicit in relationships …” (Balboa Ins. Co. v. Trans Global Equities, (1990) 218 Cal.App.3d 1327, 1350-1351). If a fiduciary fails to preserve the confidentiality of the relationship or otherwise acts in a manner that breaches the principles trust, then they are liable for breach of the Duty of Confidentiality. What happens if Defendant breaches the Duty of Confidentiality? A Plaintiff can bring a cause of action for Breach of Confidentiality. In order to prevail in an action for Breach of Confidentiality, a plaintiff must establish the following: 1. The existence of a Fiduciary Relationship: A Fiduciary Duty exists; 2. The Fiduciary had Confidential Information: That the Fiduciary/Defendant had information relating to Plaintiff/Principal that was confidential; 3. The Fiduciary Utilized the Confidential Information for their personal benefit: That the Fiduciary/Defendant used the sensitive information to their benefit or disclosed the confidential information; 4. The Principal did not authorize the Fiduciary to Utilize the Confidential Information: That Plaintiff/Principal did not give informed consent to the Fiduciary/Defendant; 5. The Confidential Information was Not Common Knowledge: The Confidential Information was not a matter of general knowledge; 6. The Principal was harmed by the Fiduciary’s Actions: That harm came to the Plaintiff/Principal; and 7. The Fiduciary’s Actions was a substantial factor in Causing the Principal’s harm: The conduct of the Fiduciary/Defendant was a substantial factor in causing the Plaintiff/Principal’s harm. Related Articles and Publications Articles discussing Fiduciary Duties exclusively are listed below: • FRAUD I BREACH OF FIDUCIARY DUTY – What Fiduciary Duties Are Owed? A Fiduciary Owes The Duty Of Undivided Loyalty. What Happens If A Fiduciary Breaches Their Duty Of Undivided Loyalty? http://dianalegal.com/fraud-i-breach-of-fiduciary-duty-what-fiduciary-duties-are-owed-a-fiduciary-owes-the-duty-of-undivided-loyalty-what-happens-if-a-fiduciary-breaches-their-duty-of-undivided-loyalty/ • FRAUD I BREACH OF FIDUCIARY DUTY – What Fiduciary Duties Are Owed? A Fiduciary Owes The Duty To Use Reasonable Care. What Happens If A Fiduciary Breaches Their Duty To Use Reasonable Care? http://dianalegal.com/fraud-i-breach-of-fiduciary-duty-what-fiduciary-duties-are-owed-a-fiduciary-owes-the-duty-to-use-reasonable-care-what-happens-if-a-fiduciary-breaches-their-duty-to-use-reasonable-care/ • FRAUD I BREACH OF FIDUCIARY DUTY – What Is A Fiduciary Duty? What Does A Breach Of Fiduciary Duty Mean? What Is A Fiduciary? http://dianalegal.com/fraud-i-breach-of-fiduciary-duty-what-is-a-fiduciary-duty-what-does-a-breach-of-fiduciary-duty-mean-what-is-a-fiduciary/ Causes of Action for Fraud and Breach of Fiduciary Duty in California: For other articles discussing the various causes of action for Fraud in California, links are included below: • FRAUD – What Constitutes Fraud In California? What Does A Cause Of Action For Fraud By Intentional Misrepresentation In California Mean? http://dianalegal.com/fraud-what-constitutes-fraud-in-california-what-does-a-cause-of-action-for-fraud-by-intentional-misrepresentation-in-california-mean/ • FRAUD – WHAT CONSTITUTES FRAUD IN CALIFORNIA? WHAT DOES A CAUSE OF ACTION FOR FRAUD BY FALSE PROMISE IN CALIFORNIA MEAN?: http://dianalegal.com/FRAUD-WHAT-CONSTITUTES-FRAUD-IN-CALIFORNIA-WHAT-DOES-A-CAUSE-OF-ACTION-FOR-FRAUD-BY-FALSE-PROMISE-IN-CALIFORNIA-MEAN/ • FRAUD VIA FALSE PROMISE OR PROMISSORY FRAUD: http://dianalegal.com/fraud-legal-liability-for-fraud-civil-tort-for-fraud-via-false-promise-or-promissory-fraud/ • INTENTIONAL FRAUD AND DECEIT is embedded herein: http://dianalegal.com/fraud-legal-liability-for-fraud-civil-tort-for-intentional-fraud-and-deceit/ • CONVERSION OR BREACH OF FIDUCIARY DUTY http://dianalegal.com/fraud-legal-liability-for-fraud-civil-tort-for-conversion-or-breach-of-fiduciary-duty/ • FRAUDULENT CONCEALMENT OR CONCEALMENT FRAUD: http://dianalegal.com/fraud-legal-liability-for-fraud-civil-tort-for-fraudulent-concealment-or-concealment-fraud/ • FRAUD – What Constitutes Fraud In California? What Does A Cause Of Action For Fraud By Concealment In California Mean? http://dianalegal.com/fraud-what-constitutes-fraud-in-california-what-does-a-cause-of-action-for-fraud-by-concealment-in-california-mean/ • FRAUD – Legal Liability For Fraud – Civil Tort For Conversion Or Breach Of Fiduciary Duty: http://dianalegal.com/fraud-legal-liability-for-fraud-civil-tort-for-conversion-or-breach-of-fiduciary-duty/ • CONSTRUCTIVE FRAUD OR NEGLIGENT MISREPRESENTATION is embedded herein: http://dianalegal.com/fraud-legal-liability-for-fraud-civil-tort-for-constructive-fraud-or-negligent-misrepresentation/ • CORPORATE LAW – Corporations Claiming Personhood And Fiduciary Duties: http://dianalegal.com/corporate-law-corporations-claiming-personhood-and-fiduciary-duties/ For Fraud and Breach of Fiduciary Verdicts in California: Our articles discussing Fraud verdicts in California are included below: • BREACH OF CONTRACT I FRAUD I VERDICT – Homeowner Recovers $1.63 Million In Damages Against Mortgage Fraud Broker In Fraud, Negligent Misrepresentation, Breach Of Fiduciary Duty Action: http://dianalegal.com/breach-of-contract-i-fraud-i-verdict-homeowner-recovers-1-63-million-in-damages-against-mortgage-fraud-broker-in-fraud-negligent-misrepresentation-breach-of-fiduciary-duty-action/ • BREACH OF CONTRACT I BUSINESS LAW – FRAUD DAMAGES IN BREACH OF CONTRACT – COMPANY FAILS TO PAY FORMER PRESIDENT’S SHARES, PRESIDENT SECURES VERDICT FOR $553,000: http://dianalegal.com/breach-of-contract-i-business-law-fraud-damages-in-breach-of-contract-company-fails-to-pay-former-presidents-shares-president-secures-verdict-for-553000/ • FRAUD I BREACH OF FIDUCIARY – Drew Brees Alleges Breach Of Fiduciary Duty Against SD Jeweler Vahid Moradi: http://dianalegal.com/fraud-i-breach-of-fiduciary-drew-brees-alleges-breach-of-fiduciary-duty-against-sd-jeweler-vahid-moradi/ • FRAUD I BREACH OF FIDUCIARY – Jury awards Brees $6 million in Jewelry Fraud Lawsuit: http://dianalegal.com/fraud-i-breach-of-fiduciary-jury-awards-brees-6-million-in-jewelry-fraud-lawsuit/ • BREACH OF CONTRACT I FRAUD I VERDICT – Homeowner Recovers $1.63 Million In Damages Against Mortgage Fraud Broker In Fraud, Negligent Misrepresentation, Breach Of Fiduciary Duty Action: http://dianalegal.com/breach-of-contract-i-fraud-i-verdict-homeowner-recovers-1-63-million-in-damages-against-mortgage-fraud-broker-in-fraud-negligent-misrepresentation-breach-of-fiduciary-duty-action/ • FRAUD – Legal Liability for Fraud – Civil Tort for Conversion or Breach of Fiduciary Duty: http://dianalegal.com/fraud-legal-liability-for-fraud-civil-tort-for-conversion-or-breach-of-fiduciary-duty/ Fraud Damages: Our articles discussing Fraud damages in California are included below: • FRAUD I DAMAGES I CIVIL LITIGATION – Punitive Damages Vs. Compensatory Damages: http://dianalegal.com/fraud-i-damages-i-civil-litigation-punitive-damages-vs-compensatory-damages/ • FRAUD I DAMAGES I CIVIL LITIGATION – What Are Punitive Damages? http://dianalegal.com/fraud-i-damages-i-civil-litigation-what-are-punitive-damages/ Recovery from the Victims Of Corporate Fraud Compensation Fund of California: For articles discussing damages: • BUSINESS FRAUD I CORPORATE FRAUD – Payment From The Victims Of Corporate Fraud – VCFCF: Victims Of Corporate Fraud Compensation Fund: http://dianalegal.com/business-fraud-i-corporate-fraud-payment-from-the-victims-of-corporate-fraud-vcfcf-victims-of-corporate-fraud-compensation-fund/ • BUSINESS FRAUD I CORPORATE FRAUD I DAMAGES – Compensation For “Aggrieved Person” Who Has Obtained A “Final Judgment” Against A Corporation Based Upon The Corporation’s Fraud, Misrepresentation Or Deceit – VCFCF: Victims Of Corporate Fraud Compensation Fund: http://dianalegal.com/business-fraud-i-corporate-fraud-i-damages-compensation-for-aggrieved-person-who-has-obtained-a-final-judgment-against-a-corporation-based-upon-the-corpor/ If you have fallen victim to fraud or have questions or fiduciary duties we encourage you to contact our offices at 619-432-5145 for a free consultation with one of our fraud attorneys and breach of fiduciary duty lawyers. TAGS: California Fraud Attorney, San Diego Fraud Attorney, Fraud by making false representations, Intentional Failure to disclose, Contract induced by fraud, False representations in contracts, Fraudulent Inducement in Investments, Fraudulent tactics in Investment transactions, Fraudulent Agreements, misappropriation of funds, financial mismanagement, misappropriation of funds attorney, financial mismanagement attorney, San Diego Breach of Fiduciary Attorney, California Fiduciary Attorney, San Diego Fiduciary Attorney, California Fiduciary Lawyer, San Diego Fiduciary Lawyer, Breach of Fiduciary, WHAT IS FRAUD, Is Fraud Civil, What is Fraud Litigation, Fraud Litigation, A Civil Fraud Claim, Fraud Claim, Legal Liability for Fraud, constructive fraud, negligent misrepresentation, concealment fraud, fraudulently concealment, Intentional Fraud and Deceit, Promissory Fraud, False Promise, Conversion or breach of fiduciary, What Constitutes Fraud in California, What does a Cause of Action for Fraud by False Promise in California Mean, What is a Cause of Action for Fraud in California, What is a Fiduciary Duty?, What is a Breach of Fiduciary Duty?, What is a Fiduciary?, What Duties are owed? Fiduciary owes the Duty to use Reasonable Care, What happens if a fiduciary breaches their duty to use Reasonable Care, A Fiduciary owes the Duty of Undivided Loyalty, What happens if a fiduciary breaches their duty of Undivided Loyalty, What Is a Duty of Confidentiality, A Fiduciary owes a Duty of Confidentiality, What happens if Defendant breaches the Duty of Confidentiality,

FRAUD I BREACH OF FIDUCIARY DUTY – What Fiduciary Duties are Owed? A Fiduciary owes the Duty of Confidentiality. What happens if a Fiduciary Breaches their Duty of Confidentiality?

FRAUD I BREACH OF FIDUCIARY DUTY – What Fiduciary Duties are Owed? A Fiduciary owes the Duty of Confidentiality. What happens if a Fiduciary Breaches their Duty of Confidentiality?

January 22, 2020

A Fiduciary owes a Duty of Confidentiality

A fiduciary is an individual or corporation to whom property or power is entrusted for the benefit of a principal.  A fiduciary is in a confidential relationship with a principal and duties of trust are owed to the principal.  While not explicitly expressed, it is understood that a principal can reasonable rely and trust a fiduciary, because the fiduciary owes a Duty of Confidentiality.

What Is a Duty of Confidentiality? 

“The law of confidential relationships governs duties of trust that one is not obligated to assume. Once a person commits himself to a confidential relationship, the law requires him to fulfill the duties attendant to the relationship. Confidential relations protect the trust that is implicit in relationships …” (Balboa Ins. Co. v. Trans Global Equities, (1990) 218 Cal.App.3d 1327, 1350-1351).  If a fiduciary fails to preserve the confidentiality of the relationship or otherwise acts in a manner that breaches the principles trust, then they are liable for breach of the Duty of Confidentiality.

What happens if Defendant breaches the Duty of Confidentiality? A Plaintiff can bring a cause of action for Breach of Confidentiality.

In order to prevail in an action for Breach of Confidentiality, a plaintiff must establish the following:

  1. The existence of a Fiduciary Relationship: A Fiduciary Duty exists;
  2. The Fiduciary had Confidential Information: That the Fiduciary/Defendant had information relating to Plaintiff/Principal that was confidential;
  3. The Fiduciary Utilized the Confidential Information for their personal benefit: That the Fiduciary/Defendant used the sensitive information to their benefit or disclosed the confidential information;
  4. The Principal did not authorize the Fiduciary to Utilize the Confidential Information: That Plaintiff/Principal did not give informed consent to the Fiduciary/Defendant;
  5. The Confidential Information was Not Common Knowledge: The Confidential Information was not a matter of general knowledge;
  6. The Principal was harmed by the Fiduciary’s Actions: That harm came to the Plaintiff/Principal; and
  7. The Fiduciary’s Actions was a substantial factor in Causing the Principal’s harm: The conduct of the Fiduciary/Defendant was a substantial factor in causing the Plaintiff/Principal’s harm.

Related Articles and Publications

Articles discussing Fiduciary Duties exclusively are listed below:

Causes of Action for Fraud and Breach of Fiduciary Duty in California: For other articles discussing the various causes of action for Fraud in California, links are included below:

For Fraud and Breach of Fiduciary Verdicts in California: Our articles discussing Fraud verdicts in California are included below:

Fraud Damages: Our articles discussing Fraud damages in California are included below:

Recovery from the Victims Of Corporate Fraud Compensation Fund of California: For articles discussing damages:

If you have fallen victim to fraud or have questions or fiduciary duties we encourage you to contact our offices at 619-432-5145 for a free consultation with one of our fraud attorneys and breach of fiduciary duty lawyers.

Diana Legal