AZ Common Law Causes of Action BREACH OF FIDUCIARY DUTY (2011)

• Jurisdiction: Arizona

BREACH OF FIDUCIARY DUTY

Elements

“A fiduciary relationship has been described as something approximating business agency, professional relationship, or family tie impelling or inducing the trusting party to relax the care and vigilance he would ordinarily exercise.” Taeger v. Catholic Family & Cmty. Servs., 196 Ariz. 285, 290, ¶ 11, 995 P.2d 721, 726 (App. Div. 1, 1999).

“Our case law distinguishes a fiduciary relationship from an arm’s length relationship. Mere trust in another’s competence or integrity does not suffice; peculiar reliance in the trustworthiness of another is required. A fiduciary relationship is a confidential relationship whose attributes include great intimacy, disclosure of secrets, or intrusting of power. In a fiduciary relationship, the fiduciary holds superiority of position over the beneficiary. This superiority of position may be demonstrated in material aspects of the transaction at issue by a substitution of the fiduciary’s will.”

Standard Chartered PLC v. Price Waterhouse, 190 Ariz. 6, 24, 945 P.2d 317, 335 (App. Div. 1, 1996) (internal citations and quotations omitted).

Proof

“Whether a confidential relationship exists is a question of fact. However, when the evidence is insufficient to support a verdict, the trial court has a duty to decide the issue as a matter of law.” Taeger v. Catholic Family & Cmty. Servs., 196 Ariz. 285, 290, ¶ 12, 995 P.2d 721, 726 (App. Div...