What is the difference between a breach of professional liability law and a breach of trust?
Professional liability law is a branch of law that pertains to any professional providing services in exchange for remuneration, such as doctors, lawyers, accountants, and engineers. It is designed to protect such professionals from liability for any losses suffered by their clients due to their negligence or other wrongful acts. A breach of professional liability law occurs when a professional fails to adhere to the standards of care or any other professional obligations when providing services. A breach of trust, on the other hand, occurs when a professional fails to act in the best interests of their client or fails to hold their client’s confidential information in trust. In Montana, breaches of professional liability law are governed by the Montana Unfair Trade Practices Act (M.U.T.P.A). This act states that any professional who fails to adhere to the standards of care or any other professional obligations is liable for the resulting damages. The act also enables clients to get compensation from the professional for any losses suffered due to their negligence or wrongful acts. Breaches of trust, on the other hand, are governed by the Montana Fiduciary Duty Act (M.F.D.A). This act states that any professional who fails to act in the best interests of the client or to keep the client’s information confidential is liable for the resulting damages. Clients may also seek compensation from the professional for any losses suffered due to their breach of trust. Both breaches of professional liability law and breaches of trust are serious matters in Montana and can result in significant damages and penalties for the professional. As a result, any professional providing services in a professional capacity in Montana should ensure they are aware of and adhere to their obligations under both statutes.
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