What constitutes a breach of fiduciary duty?

A breach of fiduciary duty occurs when an agent fails to act in the best interest of their client. This concept is rooted in the fundamental obligation that agents have toward their clients, which is to prioritize the client's interests above their own. Agents are expected to provide loyalty, full disclosure, and the utmost good faith. When an agent prioritizes personal gain or neglects the client’s needs, it significantly undermines this relationship and creates grounds for a breach of fiduciary duty.

In contrast, not following client preferences or providing too much information may not necessarily equate to a breach of fiduciary duty, as these actions can depend on the context of the relationship and may still align with acting in the client’s best interest. Additionally, failing to complete documents on time primarily addresses issues of timeliness and efficiency, which may not inherently violate the duty of loyalty and good faith owed to the client. Consequently, the failure to act in the client's best interest is the most explicit violation of fiduciary duty, making it the correct distinction.