Fiduciary Duty

A fiduciary duty is the highest standard of care the law imposes. Officers, directors, managing members, trustees, and certain agents owe fiduciary duties to the entity or beneficiary they serve, duties of loyalty, care, good faith, and disclosure.

Breach of fiduciary duty claims often arise from self-dealing transactions, undisclosed conflicts of interest, usurping corporate opportunities, mismanaging trust assets, or hiding information that would affect the other party's decisions.

California courts apply the duty strictly, particularly under Corporations Code §309 (for directors) and the duties spelled out in operating agreements and partnership agreements. We advise officers and directors on day-to-day decisions to keep them inside the fiduciary boundary.