![]() ![]() Are You a Victim of Negligence or Breach of Fiduciary Duty? A case based on the wrong legal theory may not win or result in lower damages, even for the same offending act. Negligence and fiduciary breach often have different statutes of limitations, penalties, and damage awards. In bringing a claim, it is important to base the claim on the appropriate cause of action – either negligence or a breach of a fiduciary duty. On the other hand, if he invests his client’s money solely to increase his commission, he has breached his duty of loyalty. If he is unaware of a lucrative investment opportunity because he did not do appropriate research, he may have been negligent, but he has not necessarily breached a fiduciary duty. In contrast, a financial advisor has a duty to always act in the best interest of a client. But they do have the legal obligation to others of reasonable care while driving. ![]() For example, motorists generally do not have a fiduciary relationship with other drivers. Their elements are similar, but negligence can exist outside of a fiduciary obligation, and mere negligence does not necessarily constitute a breach of fiduciary duty. Whether a legal claim is due to negligence or a breach of fiduciary duty can be confusing to the average person. An example is a trucking company being liable for the negligent actions of one of its drivers while on a delivery. Vicarious liability is imposed on a party who is deemed responsible, based on various legal tests, for the actions of the party causing the negligent act. Vicarious liability is the liability of a party for damages despite not directly causing the injury or damage. The extent of liability depends on the situation and type of negligence. Although it is usually the person causing the injury that is liable for damages caused by negligence, in some instances, other parties may also be liable through vicarious liability. Like a breach of fiduciary duty, civil liability can arise from negligence that causes damages or injuries. The breach of duty caused these damages. ![]() Damages occurred to the party to whom the duty is owed.A legal duty of reasonable care exists between the parties.The four elements of negligence are similar to a fiduciary breach. The theory is that under certain conditions, people have a duty to act in a reasonable and prudent manner to avoid unreasonable risks of harm to someone else. In legal terms, negligence is the failure to use the level of care and caution that an ordinary person would use in similar circumstances. The award is based on both direct and indirect damage caused by the breach. ![]() A successful breach of fiduciary duty claim can result in monetary awards for the client. These damages occurred because of a breach of a fiduciary duty.Įxamples of situations where the client may have a cause of action against the fiduciary for a breach of their duty include where the fiduciary prioritizes his own interests to the detriment of their principal, reveals confidential client information, or enters into a contract in bad faith resulting in a loss to their client.
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