FIDUCIARY DUTIES

May 20, 2015 in Roland's Law Blog

DUTIES OF A FIDUCIARY

THE FOLLOWING IS EXTROPATED FROM TEXAS PATTERN JURY CHARGES (2013).

*Compliance with fiduciary responsibilities requires the fiduciary to show that:

1. The transaction(s) in question were fair and equitable to the beneficiary of the duty; and

2. The fiduciary made reasonable use of the confidences the beneficiary placed in him/her; and

3. The fiduciary acted in the utmost good faith and exercised scrupulous honesty towards the beneficiary; and

4. The fiduciary placed the interests of the beneficiary before his/her own, did not use the advantage of his/her position to gain any (emphasis supplied) benefit for himself/herself at the expense of the beneficiary, and did not place himself/herself in any position where his/her self-interest might conflict with his/her obligations as a fiduciary; and

5. Fully and fairly disclosed all important information to the beneficiary concerning the transaction.

 

*Whether the burden falls (a) on the fiduciary to prove that he or she DID comply with the above duties or (b) on the person complaining of the actions of the fiduciary to show that the fiduciary DID NOT comply with the above duties depends upon whether or not the fiduciary benefitted from the alleged failure to comply.