What is the difference between civil fraud and breach of fiduciary duty?

Civil fraud and breach of fiduciary duty are two concepts that are commonly confused and both are potential causes of action in a civil lawsuit. In California, civil fraud involves intentionally deceiving another person or entity, typically for some type of gain. In contrast, breach of fiduciary duty occurs when a person or entity with a fiduciary duty to another person or entity breaches that duty. Under California civil law, a fiduciary duty is a duty of loyalty and trust which a person or entity owes to another. In a fiduciary relationship, the fiduciary must put the interests of the persons they owe the duty to (the principals) before their own interests. Examples of fiduciary relationships include those between an attorney and their client, a trustee and a beneficiary or a corporate officer and the company. A breach of fiduciary duty occurs when the fiduciary fails to honor this duty of loyalty and trust. When this happens, the fiduciary may be held liable for any damage or loss suffered by the principal. This can include financial losses or emotional distress. In contrast, civil fraud occurs when a person or entity knowingly and intentionally makes false or misleading statements or representations to another in order to gain something such as money, services or property. In California, if it can be proven that a person intentionally deceived another they may be held liable for damages caused by their deception. In summary, civil fraud and breach of fiduciary duty are two distinct causes of action in California. Civil fraud involves intentionally deceiving another for some gain, while breach of fiduciary duty occurs when a person in a fiduciary relationship fails to honour the duty of loyalty and trust they owe to another.

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What is the difference between civil fraud and breach of fiduciary duty?

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