Defendants Held Liable For Aiding And Abetting Breach Of Fiduciary Duty To Plaintiff, Despite Not Owing Plaintiff A Fiduciary Duty.

The jury found defendants liable for aiding and abetting breach of fiduciary duty and awarded restitution in the amount of approximately $5.8 million. A main issue in the appellate court was whether there can be liability for aiding and abetting a breach of fiduciary duty against someone who does not owe a fiduciary duty. The appellate court stated: “There are two different theories pursuant to which a person may be liable for aiding and abetting a breach of fiduciary duty. One theory, like conspiracy to breach a fiduciary duty, requires that the aider and abettor owe a fiduciary duty to the victim and requires only that the aider and abettor provide substantial assistance to the person breaching his or her fiduciary duty. []On this theory, California law treats aiding and abetting a breach of fiduciary duty and conspiracy to breach a fiduciary duty similarly. . . . The second theory for imposing liability for aiding and abetting a breach of fiduciary duty arises when the aider and abettor commits an independent tort. This occurs when the aider and abettor makes ‘a conscious decision to participate in tortious activity for the purpose of assisting another in performing a wrongful act.’ [¶] [Plaintiff] proceeded on the second theory of aiding and abetting liability. [Plaintiff] pleaded and proved that defendants had actual knowledge of the fiduciary duties [other defendants] owed to [plaintiff], that defendants provided the three fiduciaries with substantial assistance in breaching their duties, and that defendants’ conduct resulted in unjust enrichment. Thus, the trial court did not err in ruling, on demurrer and in connection with the jury instructions, that defendants could be liable for aiding and abetting a breach of fiduciary duty even though they did not have a fiduciary duty to [plaintiff].” (American Master Lease, LLC v. Idanta Partners, LTD (Cal. App. Second Dist., Div. 7; May 5, 2014) (As Mod. May 27, 2014) 225 Cal.App.4th 1451.)