What is the law of fiduciary duty?
The law of fiduciary duty is a legal concept which applies to people or businesses that have a special relationship of trust and confidence. This concept applies in Washington and states that those who have a fiduciary duty owe a duty of loyalty, good faith, and reasonable care to the person to whom they owe the duty of fiduciary responsibility. Fiduciary duty can be seen in any instance when one party places an amount of trust and confidence in another. This may include a relationship between an employer and employee, an attorney and client, or a business partner. Further, fiduciary duties may also extend to shareholders of a company, trustees of a trust, or directors of a corporation. In Washington, it is the responsibility of the person in the fiduciary role to act not only in the best interest of the other party, but to do so in an unbiased manner. This means that the fiduciary has a duty to refrain from any activities which could benefit themselves or harm the other party. Additionally, it is the legal responsibility of the fiduciary to disclose all pertinent information to the other party in a reasonable and timely manner, and to act with loyalty in all decisions made which may affect the other party. Finally, if a fiduciary fails to follow the law, they may be held financially accountable for the losses resulting from their breach of duty. This underscores the importance of the law of fiduciary duty in Washington, and the consequences which can result if a person fails to abide by it.
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