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 New York, a breach of fiduciary duty occurs when an individual or entity, who is obligated to act in the best interest of another party, fails to do so. This breach can arise in various relationships, such as between an attorney and client or a trustee and 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 decisions. When these duties are breached, the injured party may file a civil lawsuit to recover damages. New York courts will examine the specifics of the fiduciary relationship and the alleged breach to determine if there was a violation of the duty of loyalty or care. If a breach is found, the court may order monetary compensation or other remedies to address the harm caused by the breach.