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Breach of a Confidential Relationship
Breach of a Confidential Relationship is similar to Breach of Fiduciary Duty, in that a party is liable for breaching a duty that is owed by virtue of a special relationship between the parties. However, a confidential relationship may arise by virtue of kinship or other informal relationships that typically would not create a fiduciary relationship between the parties.
The elements of a breach of a confidential relationship claim are:
- A confidential relationship exists between the parties, characterized by one party gaining the confidence of the other and purporting to act or advise with the other’s interest in mind;
- The person in whom the special trust is placed breaches a duty owed by virtue of the relationship, such as failing to act in good faith or with due regard to the interests of the other party;
- The breach proximately caused damages to the other party.