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 Kentucky, 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 relationship of trust and confidence, fails to do so. This breach can involve a failure to act with loyalty, avoiding conflicts of interest, or a failure to act with care, which means not making informed decisions in the best interest of the party to whom the duty is owed. Common relationships involving fiduciary duties include those between attorneys and clients, trustees and beneficiaries, corporate directors and shareholders, and partners in a partnership. When a breach of fiduciary duty is alleged, the injured party can file a civil lawsuit seeking to recover damages for losses incurred due to the breach. Kentucky courts will evaluate the specifics of the fiduciary relationship, the duties owed, and whether those duties were breached, resulting in harm. Remedies may include compensatory damages, punitive damages, and in some cases, equitable relief such as injunctions or the imposition of a constructive trust.