Los Angeles Breach of Fiduciary Duty Attorney
A breach of fiduciary duty is a serious legal issue that can arise in many professional and business relationships in California. When one party places trust and confidence in another to act in their best interests, the law imposes strict obligations known as fiduciary duties. If those duties are violated, the injured party may have the right to file a breach of fiduciary duty claim in California and seek financial damages or other legal remedies.
Case Results
$3.4M Recovered
Business Litigation
Assisted in recovery ofthe balance of the purchase price for the sale of a business
$2.7M Verdict
Business Litigation
Assisted in obtaining jury verdict for breach of contract and conversion of business ownership, jury verdict only $25k less than requested
$342k Judgement
Business Litigation
For fraudulent inducement of loans, breach of contract, and defamation in false online posts and reviews
$317k Judgement
Business Litigation
For two brothers and their international business after proving fraud, breach of contract, and defamation by a serial fraudster, despite delays, false accusations, and a last-minute bankruptcy filing
Judgement
Business Litigation
For an elderly landlord and trust, defeating all claims by evicted tenants who tried to misuse COVID as an excuse for nonpayment
$385k Judgement
Business Litigation
For a textile manufacturer in a contract dispute, despite a cross-complaint from the wholesaler
$657k Judgement
Business Litigation
Against a real estate agent who misappropriated client funds, using forensic accounting to prove full fraud and conversion.
$398k Judgement
Business Litigation
By enforcing a promissory note, recovering 100% of damages plus interest
$125k Judgement
Business Litigation
Helped obtain a default judgment against an attorney for unpaid loan balance and battery, after securing terminating sanctions for discovery violations
Disclaimer: Illustrative examples of case types and outcomes. Attorneys cannot guarantee outcomes. Results are case-specific and depend on the true facts of the case. More information here.
What is a Fiduciary Duty in California
California law recognizes that there are certain relationships where one party has the duty to act with the utmost good faith for the benefit of the other party. A fiduciary duty is the legal obligation that requires a party to place the interests of the other party over their own personal interests. Various fiduciary duties exist, and together, they ensure that the party exercising the trust or control are not acting in their own interests.
Common Relationships with Fiduciary Duties in California
Examples of relationships that impose a fiduciary duty to act on behalf of and for the benefit of another include:
- Joint ventures or partnerships
- Agency relationships (acting as an agent of a principal)
- An investment advisor and client relationship
- Corporate officers, directors, and majority shareholders, to the minority shareholders
- Trustees to their beneficiaries
- Real estate agents to their clients
- Escrow officers to the parties in escrow
Types of Fiduciary Duties in California
The duties may slightly vary depending on the relationship, but all fiduciary relationships include the duties:
- To use reasonable care
- Of undivided loyalty
- Of confidentiality
How Do You Prove Breach of Fiduciary Duties in California
To successfully bring a claim for breach of fiduciary duties in California, a plaintiff must prove:
1. The existence of a fiduciary duty;
2. Breach of the fiduciary duty; and
3. Resulting damages.
Examples of Breach of Fiduciary Duties in California
Claims for breach of fiduciary duty in California arise in many different legal and business contexts, such as:
- In corporate or business disputes where directors, officers, or majority shareholders engage in self-dealing, misuse corporate assets, or divert business opportunities for personal gain, all at the expense of minority shareholders
- In partnership or co-ownership disputes where a partner misappropriates or embezzles funds, or competes with the partnership by personally taking a business opportunity
- Trustee or escrow misconduct by mismanagement of funds or failure to follow the terms of the trust or escrow instructions
Damages for Breach of Fiduciary Duties in California
A prevailing plaintiff may be entitled to recover:
- Economic losses caused by the breach
- Other consequential damages for losses that naturally arose from the breach
- Punitive damages for the defendant’s conduct based on fraud, malice, or oppression
Why You Need an Experienced Los Angeles Lawyer for Breach of Fiduciary Duties
Fiduciary relationships exist because one party relies heavily on the honesty and loyalty of another. When that trust is abused, the consequences can be significant for businesses, investors, beneficiaries, clients, and other individuals. A claim for breach of fiduciary duty in California helps ensure that those entrusted with authority or responsibility are held accountable when they misuse that position.
An attorney experienced in business litigation can help investigate the misconduct, gather evidence, calculate damages, and pursue appropriate legal remedies to protect your interests.
Los Angeles Breach of Fiduciary Duties Lawyer Reviews
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“We have retained Hee and Litigation, P.C. Law Firm for all of our business legal needs for over four years, and we cannot recommend them highly enough.
Hee is not only knowledgeable and experienced but also incredibly thorough and detail-oriented. He meticulously reviewed all aspects of our business legal challenges, identifying potential issues and opportunities that we had not considered.
His strategic approach and ability to think several steps ahead gave us a tremendous sense of confidence and security throughout the entire process, especially the trial.
During the trial, he was fully prepared every single day, explaining his thought process to us about why he was asking or not asking certain questions to all the witnesses, raising timely objections with majority of them being sustained by the Judge…At the end of the day he wanted to make sure that we put all of our ammo on the table and we were able to successfully do that.
Hee also communicates very clearly and has been patient in explaining legal jargon and complex concepts in a way that was easy to understand, ensuring that we were well-informed and comfortable with every decision we made.
If you are looking for a lawyer who will provide exceptional legal counsel and support, we highly recommend Hee and Litigation, P.C. Law Firm.”
S. A. (Business, Fraud)
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“Working with Hee Kim and Litigation, PC has been an exceptional experience. He consistently keeps me informed on every aspect of my case, providing clear details on costs, pros, and benefits of each option. His dedication to my interests is evident at every step, and he ensures I am fully involved in the process.
Attending court hearings with him is reassuring as he remembers every detail and effectively refutes the other side’s claims. His preparation for depositions is impeccable, always calling out any inconsistencies. His strategic advice on when to take specific actions or make motions has been spot on.
His litigation approach is unmatched, and he is highly aggressive in fighting for his clients. He prioritizes his clients, making each one feel like his only case. I highly recommend Hee and his firm to anyone seeking strong legal representation! “
S. A. (Business, Fraud)
“Hee and his team have been our general counsel for years and have handled insurance, real estate, business and collections matters. They are very easy to work with and have a wide range of expertise that is very helpful. Highly recommend!”
E. A. (Business)
Los Angeles Breach of Fiduciary Duties Attorney FAQs
What is the duty to use reasonable care?
The claim in essence is that the defendant failed to act as a reasonable person in the same or similar circumstances. The failure could be because of negligence, fraud, or some other intentional misconduct. For example, a genuine mistake is likely negligent.
What is the duty of undivided loyalty?
The duty of undivided loyalty means that the defendant must act in the plaintiff’s best interests at all times. This means not using the relationship for self-benefit, competing against the plaintiff or participating in any activities adverse to the interests of the plaintiff.
What is the duty of confidentiality?
The duty of confidentiality means the defendant had information relating to the plaintiff that the defendant knew or should have known was confidential, but used that information for the defendant’s own benefit or gave it to third parties. Such use or disclosure needs to have been without the plaintiff’s consent and cause harm to the plaintiff.
What additional fiduciary duties do escrow holders have?
Most people are aware of “escrow”, escrow officers, or escrow companies, during a real estate deal or transaction, but they can be involved in other contexts, such as the sale of a business. Escrow holders are neutral third party agents that are responsible for holding onto funds, documents, and property in trust during a transaction, to facilitate the deal. They make sure all the conditions are met before closing and disbursing all the things held in escrow to the proper parties. In a real estate sale, the escrow company ensures that the money for the purchase is not given to the seller until all the other conditions of the sale are met. At the same time, escrow makes sure that the property is not transferred to the buyer until the buyer has paid.
In California, escrow holders have a fiduciary duty to strictly comply with the parties’ written instructions and to exercise reasonable skill and diligence in carrying out those instructions.
What additional fiduciary duties do real estate brokers have?
A real estate broker must disclose all material information that the broker knows or can reasonably obtain about a property to the client. “Material” means information that may affect the client’s decision. The broker is hired for the broker’s professional knowledge and skill, which means performing the necessary research and investigation to know or learn the material information. These fiduciary duties are more extensive than the nonfiduciary duties specified by statute.
What is the statute of limitations for breach of fiduciary duty in California?
In general, it is four years. However, the statute of limitations may not begin to run or accrue because of the discovery rule, which is when the plaintiff discovered or should have reasonably discovered the breach and harm.