{"id":1895,"date":"2021-10-25T03:56:04","date_gmt":"2021-10-25T03:56:04","guid":{"rendered":"https:\/\/crowdsourcelawyers.com\/judicial-council-california-civil-jury-instructions-caci\/?page_id=1895"},"modified":"2022-05-09T19:02:38","modified_gmt":"2022-05-09T19:02:38","slug":"caci-4100-fiduciary-duty-explained","status":"publish","type":"page","link":"https:\/\/crowdsourcelawyers.com\/judicial-council-california-civil-jury-instructions-caci\/caci-4100-fiduciary-duty-explained\/","title":{"rendered":"CACI 4100 \u201cFiduciary Duty\u201d Explained"},"content":{"rendered":"\n<style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-kv2at8mg-45bd2feda99d28a839d8cf9bbcdec5a6\">\n#top .av-special-heading.av-kv2at8mg-45bd2feda99d28a839d8cf9bbcdec5a6{\npadding-bottom:10px;\n}\nbody .av-special-heading.av-kv2at8mg-45bd2feda99d28a839d8cf9bbcdec5a6 .av-special-heading-tag .heading-char{\nfont-size:25px;\n}\n.av-special-heading.av-kv2at8mg-45bd2feda99d28a839d8cf9bbcdec5a6 .av-subheading{\nfont-size:15px;\n}\n<\/style>\n<div  class='av-special-heading av-kv2at8mg-45bd2feda99d28a839d8cf9bbcdec5a6 av-special-heading-h1 blockquote modern-quote  avia-builder-el-0  el_before_av_hr  avia-builder-el-first '><h1 class='av-special-heading-tag '  itemprop=\"headline\"  >CACI 4100 <span class='special_amp'>\u201c<\/span>Fiduciary Duty<span class='special_amp'>\u201d<\/span> Explained<\/h1><div class='av-subheading av-subheading_below'><p>California Civil Jury Instructions CACI<\/p>\n<\/div><div class=\"special-heading-border\"><div class=\"special-heading-inner-border\"><\/div><\/div><\/div>\n<div  class='hr av-av_hr-91d7ccd583a503147498e120fee2ff9b hr-default  avia-builder-el-1  el_after_av_heading  el_before_avia_sc_search '><span class='hr-inner '><span class=\"hr-inner-style\"><\/span><\/span><\/div>\n\n<style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-avia_sc_search-f7f83518637509acfac1c9900b84c1e7\">\n#top 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id='searchform_element' method='get' class='' data-element_id='av-avia_sc_search-f7f83518637509acfac1c9900b84c1e7' ><div class='av_searchform_wrapper'><input type='search' value='' id='s' name='s' placeholder='Search CACI' aria-label='Search CACI' class='av-input-field ' required \/><div class='av_searchsubmit_wrapper '><input type='submit' value='Find' id='searchsubmit' class='button ' title='View results on search page' aria-label='View results on search page' \/><\/div><input type='hidden' name='numberposts' value='8' \/><input type='hidden' name='post_type' value='page' \/><input type='hidden' name='results_hide_fields' value='post_titles,meta,image' \/><\/div><\/form><\/search><\/div>\n<section  class='av_textblock_section av-av_textblock-e878f05c31dff72941bf1e49a00d9ff5 '   itemscope=\"itemscope\" itemtype=\"https:\/\/schema.org\/CreativeWork\" ><div class='avia_textblock'  itemprop=\"text\" ><ul>\n<li><a href=\"https:\/\/crowdsourcelawyers.com\/judicial-council-california-civil-jury-instructions-caci\/\">CACI Jury Instructions Index<\/a><\/li>\n<li><a href=\"https:\/\/caci-fillable-forms.crowdsourcelawyers.com\/\">App: CACI Jury Instructions Fillable Forms Word Format<\/a><\/li>\n<\/ul>\n<\/div><\/section>\n<div  class='hr av-av_hr-91d7ccd583a503147498e120fee2ff9b hr-default  avia-builder-el-4  el_after_av_textblock  el_before_av_textblock '><span class='hr-inner '><span class=\"hr-inner-style\"><\/span><\/span><\/div>\n\n<style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-kv2aujds-10cdfdb69c4f452d15dc16dd1758cfae\">\n#top .av_textblock_section.av-kv2aujds-10cdfdb69c4f452d15dc16dd1758cfae .avia_textblock{\nfont-size:20px;\n}\n<\/style>\n<section  class='av_textblock_section av-kv2aujds-10cdfdb69c4f452d15dc16dd1758cfae '   itemscope=\"itemscope\" itemtype=\"https:\/\/schema.org\/CreativeWork\" ><div class='avia_textblock'  itemprop=\"text\" ><h2 class=\"SS_Banner\">4100\u00a0\u201cFiduciary Duty\u201d Explained<\/h2>\n<hr \/>\n<p><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">[A\/An] [agent\/stockbroker\/real estate agent\/real estate broker\/corporate officer\/partner\/[<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">insert other fiduciary relationship<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">]] owes what is known as a fiduciary duty to [his\/her\/<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">nonbinary pronoun<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">\/its] [principal\/client\/corporation\/partner\/[<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">insert other fiduciary relationship<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">]]. A fiduciary duty imposes on [a\/an] [agent\/stockbroker\/real estate agent\/real estate broker\/corporate officer\/partner\/[<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">insert other fiduciary relationship<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">]] a duty to act with the utmost good faith in the best interests of [his\/her\/<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">nonbinary pronoun<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">\/its] [principal\/client\/corporation\/ partner\/[<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">insert other fiduciary relationship<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">]]. <br class=\"avia-permanent-lb\" \/><br class=\"avia-permanent-lb\" \/><\/span><\/p>\n<hr \/>\n<div class=\"SS_Note\">\n<h2 class=\"SS_HideShowSection SS_Expandable\"><\/h2>\n<div id=\"TRNotes_n_1\">\n<p><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">New June 2006; Revised December 2010, December 2016 <br class=\"avia-permanent-lb\" \/><br class=\"avia-permanent-lb\" \/><\/span><\/p>\n<hr \/>\n<p><a href=\"https:\/\/crowdsourcelawyers.com\/\">Crowdsource Lawyers<\/a><\/p>\n<p><a href=\"https:\/\/crowdsourcelawyers.com\/judicial-council-california-civil-jury-instructions-caci\">https:\/\/crowdsourcelawyers.com\/judicial-council-california-civil-jury-instructions-caci<\/a><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\"><br class=\"avia-permanent-lb\" \/><\/span><\/p>\n<hr \/>\n<\/div>\n<\/div>\n<div class=\"SS_Note\">\n<h2 class=\"SS_HideShowSection SS_Expandable\">Directions for Use<\/h2>\n<div id=\"TRNotes_n_2\">\n<p>This instruction explains the nature of a fiduciary duty. It may be modified if other concepts involving fiduciary duty are relevant to the jury\u2019s understanding of the case. For instructions on damages resulting from misrepresentation by a fiduciary, see\u00a0CACI No. 1923,\u00a0<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Damages\u2014\u201cOut of Pocket\u201d Rule<\/span>, and\u00a0CACI No. 1924,\u00a0<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Damages\u2014\u201cBenefit of the Bargain\u201d Rule<\/span>.<\/p>\n<p>The elements of a cause of action for breach of fiduciary duty are the existence of a fiduciary relationship, its breach, and damage proximately caused by that breach. (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Knox v. Dean<\/span>\u00a0(2012) 205 Cal.App.4th 417, 432\u2013433 [140 Cal.Rptr.3d 569].) No fraudulent intent is required. (See\u00a0Civ. Code, \u00a7\u20091573\u00a0(defining \u201cconstructive fraud\u201d).) <br class=\"avia-permanent-lb\" \/><br class=\"avia-permanent-lb\" \/><\/p>\n<hr \/>\n<\/div>\n<\/div>\n<div class=\"SS_Note\">\n<h2 class=\"SS_HideShowSection SS_Expandable\">Sources and Authority<\/h2>\n<div id=\"TRNotes_n_3\">\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201cA fiduciary relationship is \u2018\u2009\u201c\u2009\u2018any relation existing between parties to a transaction wherein one of the parties is in duty bound to act with the utmost good faith for the benefit of the other party. Such a relation ordinarily arises where a confidence is reposed by one person in the integrity of another, and in such a relation the party in whom the confidence is reposed, if he voluntarily accepts or assumes to accept the confidence, can take no advantage from his acts relating to the interest of the other party without the latter\u2019s knowledge or consent.\u2009\u2026\u2019\u2009\u201d\u2009\u2019\u2009\u201d (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Wolf v. Superior Court<\/span>\u00a0(2003) 107 Cal.App.4th 25, 29 [130 Cal.Rptr.2d 860], internal citations omitted.)<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201cWhether a fiduciary duty exists is generally a question of law. Whether the defendant breached that duty towards the plaintiff is a question of fact.\u201d (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Marzec v. Public Employees\u2019 Retirement System<\/span>\u00a0(2015) 236 Cal.App.4th 889, 915 [187 Cal.Rptr.3d 452], internal citation omitted.)<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201c\u2009\u2018\u2009\u201c[B]efore a person can be charged with a fiduciary obligation, he must either knowingly undertake to act on behalf and for the benefit of another, or must enter into a relationship which imposes that undertaking as a matter of law.\u201d [Citation.]\u2019\u2009\u201d (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Cleveland v. Johnson<\/span>\u00a0(2012) 209 Cal.App.4th 1315, 1338 [147 Cal.Rptr.3d 772].)<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201c[E]xamples of relationships that impose a fiduciary obligation to act on behalf of and for the benefit of another are \u2018a joint venture, a partnership, or an agency.\u2019 But, \u2018[t]hose categories are merely illustrative of fiduciary relationships in which fiduciary duties are imposed by law.\u2019\u2009\u201d (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Cleveland<\/span>,\u00a0<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">supra<\/span>, 209 Cal.App.4th at p. 1339, internal citation omitted.)<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201cThe investment adviser\/client relationship is one such relationship, giving rise to a fiduciary duty as a matter of law.\u201d (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Hasso v. Hapke<\/span>\u00a0(2014) 227 Cal.App.4th 107, 140 [173 Cal.Rptr.3d 356].)<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201cThere is a \u2018strong public interest in assuring that corporate officers, directors, majority shareholders and others are faithful to their fiduciary obligations to minority shareholders.\u2019\u2009\u201d (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Meister v. Mensinger<\/span>\u00a0(2014) 230 Cal.App.4th 381, 395 [178 Cal.Rptr.3d 604].)<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201cAny persons who subscribe for stock have a right to do so upon the assumption that the promoters are using their knowledge, skill, and ability for the benefit of the company. It is, therefore, clear on principle that promoters, under the circumstances just stated, do occupy a position of trust and confidence, and it devolves upon them to make full disclosure.\u201d (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Cleveland<\/span>,\u00a0<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">supra<\/span>, 209 Cal.App.4th at p. 1339.)<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201c[I]t is unclear whether a fiduciary relationship exists between an insurance broker and an insured.\u201d (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Mark Tanner Constr. v. Hub Internat. Ins. Servs.<\/span>\u00a0(2014) 224 Cal.App.4th 574, 585 [169 Cal.Rptr.3d 39].)<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201cIt is a question of fact whether one is either an investment adviser or a party to a confidential relationship that gives rise to a fiduciary duty under common law.\u201d (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Hasso<\/span>,\u00a0<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">supra<\/span>, 227 Cal.App.4th at p. 140, internal citations omitted.)<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201c[A] third party who knowingly assists a trustee in breaching his or her fiduciary duty may, dependent upon the circumstances, be held liable along with that trustee for participating in the breach of trust.\u201d (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Stueve Bros. Farms, LLC v. Berger Kahn<\/span>\u00a0(2013) 222 Cal.App.4th 303, 325 [166 Cal.Rptr.3d 116].) <br class=\"avia-permanent-lb\" \/><br class=\"avia-permanent-lb\" \/><\/span><\/p>\n<hr \/>\n<\/div>\n<\/div>\n<h2 class=\"SS_Heading\"><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\"><span class=\"SS_ib\" data-housestyle=\"EMPHASIS_ib\">Secondary Sources<\/span><\/span><\/h2>\n<div>3 Witkin, Summary of California Law (11th ed. 2017) Agency and Employment, \u00a7\u00a7\u200963, 64<\/div>\n<div>Greenwald et al., California Practice Guide: Real Property Transactions, Ch. 2-C,\u00a0<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Broker\u2019s Relationship And Obligations To Principal And Third Parties<\/span>, \u00b6\u20092:158 et seq. (The Rutter Group)<\/div>\n<div>Vapnek et al., California Practice Guide: Professional Responsibility, Ch. 6-D,\u00a0<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Professional Liability<\/span>, \u00b6\u20096:425 et seq. (The Rutter Group)<\/div>\n<div>10\u00a0California Forms of Pleading and Practice, Ch. 103,\u00a0<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Brokers<\/span>, \u00a7\u2009103.31[1]\u00a0(Matthew Bender)<\/div>\n<div>14\u00a0California Forms of Pleading and Practice, Ch. 167,\u00a0<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Corporations: Directors and Management<\/span>, \u00a7\u2009167.53 et seq.\u00a0(Matthew Bender)<\/div>\n<div>37\u00a0California Forms of Pleading and Practice, Ch. 427,\u00a0<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Principal and Agent<\/span>, \u00a7\u00a7\u2009427.12, 427.23 (Matthew Bender)<\/div>\n<div>5\u00a0California Points and Authorities, Ch. 52,\u00a0<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Corporations<\/span>, \u00a7\u200952.112 et seq.\u00a0(Matthew Bender)<\/div>\n<div>6\u00a0California Legal Forms, Ch. 12C,\u00a0<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Limited Liability Companies<\/span>, \u00a7\u200912C.24[6]\u00a0(Matthew Bender)<\/div>\n<div class=\"SS_Note\">\n<div id=\"TRNotes_n_3\"><\/div>\n<\/div>\n<\/div><\/section>\n<div  class='hr av-85e8nr-f1718b66d083a1ee3de97f2aa9d4ad0e hr-default  avia-builder-el-6  el_after_av_textblock  el_before_av_textblock '><span class='hr-inner '><span class=\"hr-inner-style\"><\/span><\/span><\/div>\n\n<style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-6hi17b-dbed66acf812c6bb6bb079781878369e\">\n#top .av_textblock_section.av-6hi17b-dbed66acf812c6bb6bb079781878369e .avia_textblock{\nfont-size:22px;\n}\n<\/style>\n<section  class='av_textblock_section av-6hi17b-dbed66acf812c6bb6bb079781878369e '   itemscope=\"itemscope\" itemtype=\"https:\/\/schema.org\/CreativeWork\" ><div class='avia_textblock'  itemprop=\"text\" ><p><a href=\"https:\/\/crowdsourcelawyers.com\/\">CrowdSourceLawyers.com<\/a><\/p>\n<\/div><\/section>\n","protected":false},"excerpt":{"rendered":"","protected":false},"author":3,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"footnotes":""},"class_list":["post-1895","page","type-page","status-publish","hentry"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - 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