Breach of fiduciary duty is a cause of action or claim in civil litigation (lawsuits) that provides the legal basis for a person or entity to recover its damages/losses when there is a special relationship based on trust and confidence (attorney and client or trustee and beneficiaries) and the party who owes the fiduciary duty breaches its duty of loyalty (conflict of interest) or duty of care (informed judgment in decision-making).
In Colorado, a breach of fiduciary duty occurs when an individual or entity, who is obligated to act in the best interest of another party due to a special trust relationship, fails to do so. This can involve situations where an attorney does not act in the best interest of a client, or a trustee does not properly manage the assets for the beneficiaries. The fiduciary has a duty of loyalty, which means they must avoid conflicts of interest, and a duty of care, which requires them to make informed and prudent decisions. When these duties are breached, the injured party may file a civil lawsuit to recover damages. Colorado law allows for such claims, and the specifics can be found in state statutes and case law that define the scope and elements of fiduciary duties, as well as the remedies available to those who have suffered a loss due to a breach.