What Is A Fiduciary Duty In Florida?
Romy B. Jurado, Esq. ?
Attorney at Jurado & Associates, P.A., a Business, Immigration, Real Estate, Probate & Litigation Law Firm.
Occasionally, different courts may have differing viewpoints on similar cases. In Florida, a legal matter that is often subject to divergent opinions is the fiduciary duty. Frequently, determining whether a person owes another a fiduciary duty or not is a complex task for judges.
While there is a classic list of relationships that impose fiduciary duties (e.g., executor/heir, guardian/ward, trustee/beneficiary, etc.), Florida courts have imposed a fiduciary duty on individuals in various types of relationships outside the traditional legal scope.
In this article, you will understand what a fiduciary duty is in Florida.
What is a Fiduciary Duty in Florida? – The Essentials
A fiduciary duty is a legal responsibility to act solely in the best interest of another party. In legal terms, the term “fiduciary” means “trust”. Hence, a person with a fiduciary duty has a legal obligation to maintain that trust.
For instance, an attorney has the fiduciary duty to act in the best interest of his/her clients. Likewise, trustees must manage the assets of a trust for its beneficiaries, while directors must manage?corporate assets?in the best interest of?shareholders.
There are distinct types of fiduciary duty, such as duties of undivided loyalty, due diligence and reasonable care, full disclosure of any conflict(s) of interest, and confidentiality.
While it is possible to accidentally violate a fiduciary duty, the action is still a?breach of ethics. When the violation of fiduciary duty is intentional, the action may be considered treacherous, malicious, and even criminal.
Although the concept of fiduciary duty may seem simple, it may get more complex and complex as you look a bit closer.
Understanding the Duties of a Fiduciary
The foundational duty of any fiduciary is the duty of loyalty. This duty obligates the fiduciary to put the beneficiary’s interest first, which means putting it ahead of any self-interest. Plus, it obligates the fiduciary to refrain from exploiting the relationship for personal benefit.
Within this specific duty’s scope, there are other specific duties, as the prohibition against conflict of interest(s), the duty to disclose any related material facts, and the prohibition against self-dealing.
Additionally, a fiduciary also owes a duty of care. Hence, a fiduciary must carry out his/her responsibilities in an acknowledgeable manner and act strictly as a prudent person would act in the management of his/her personal affairs.
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Ultimately, it is worth noting that if there is a fiduciary relationship, the fiduciary is under a duty to act for the beneficiary’s benefit only within the scope of that specific relationship. Hence, no duty attaches the fiduciary to matters outside the scope of the legal relationship.
How Does a Fiduciary Duty Arise in Florida?
Essentially, a fiduciary duty may arise expressly or impliedly. When there is a legally binding contract wherein the parties agreed to a relationship (e.g., attorney-client relationship), the fiduciary duty arises expressly.
Additionally,?Florida state law?expressly mandates a fiduciary duty in specific relationships, such as:
However, a fiduciary duty may be implied by law, when one party relies on another party to act on his/her behalf and guarantee its best interests. In such cases, it will not require the existence of formal writings,?agreements, or statutes to impose such a duty.
Yet, proving the existence of an implied fiduciary duty requires a factual allegation of dependency by the benefited party and the fiduciary’s undertaking to benefit (including advice, counsel, and/or protect) the dependent party.
Do You Still Need Legal Guidance on Fiduciary Duty in Florida? – Talk to Jurado and Farshchian, P.L. Today
Establishing the existence of fiduciary duty requires a professional approach. Waste with uncertainty – call?Attorney Romy B. Jurado?at?(305) 921-0440?or send an email to?[email protected]?to schedule a consultation.
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