Breach of Fiduciary Duty

While most breaches of fiduciary duty are addressed in civil court, there are certain circumstances where the actions of the fiduciary may also violate criminal law. Examples of criminal breaches of fiduciary duty include theft, embezzlement, fraud, identity theft, and abuse of an elderly person. In such cases, the fiduciary may face criminal charges and, if found guilty, may be subject to fines, imprisonment, or other penalties.

In any breach of fiduciary duty case, the main defense is to demonstrate that the fiduciary’s actions fall within the parameters of the foundational documents (such as a will or trust) and are in compliance with applicable Florida laws. For instance, even if beneficiaries contend that a trustee, guardian, or personal representative made “inappropriate investments,” a court may consider these investments as reasonable.

In addition to proving that their actions were within the bounds of foundational documents and the law, fiduciaries have other defenses

available to them that go beyond the factual breach claim. These defenses include:

· Equitable Defense of Laches: This defense argues that there has been an unreasonable delay in asserting the claim.

· Statute of Limitations: This defense asserts that the case is time-barred by law.

· Situational-Specific Defenses: This category of defense includes exculpatory clauses and self-executing accounting release provisions.

Self-executing accounting release provisions are often included in trusts, and they essentially excuse any bad acts of the fiduciary or trustee if no beneficiary has objected after a specified accounting period. Exculpatory clauses are another type of defense that can limit the fiduciary’s liability for unintentional mistakes or errors in judgment. However, they cannot excuse intentional bad acts committed by the fiduciary.

The statute of limitations for breach of fiduciary duty claims in Florida is four years from the date of the breach or discovery of the breach, whichever comes first. However, there may be exceptions to this rule depending on the circumstances of the case.