The claim requires an underlying fiduciary breach, the defendant's knowledge of it, and substantial assistance. Actual knowledge rather than constructive knowledge is generally required.
Professionals and lenders are common targets.
Alternative Names:
Aiding and Abetting|Assisting Fiduciary Breach
Why it Matters?
Actual knowledge is the element defeating most claims, since a professional providing ordinary services to a client who happened to breach a duty lacks the awareness the claim requires. Constructive knowledge or red flags are insufficient in most jurisdictions. Substantial assistance also requires more than routine service provision, which protects advisors performing conventional engagements without knowledge of the underlying misconduct.
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Frequently asked questions
Which element defeats most claims?
What protects professionals?
