It is essential to know when the deadlines are for filing a breach of fiduciary duty claim against a trustee. Missing these deadlines can result in the guilty party getting away, even if you have a solid case against them.
Different states may have different deadlines, so it is important to check with your particular state what its statute of limitations is for certain cases.
General statute of limitations
California’s statute of limitations for such claims generally falls under California Code of Civil Procedure section 343, which sets a four-year limit from the date the breach occurred.
Exceptions
This deadline can change based on different factors. California Civil Procedure Code 338(d) shortens the filing window to three years for cases involving deceit or implied fraud. This shortened timeframe begins when you become aware of the deceptive actions or reasonably should have become aware.
Consider a scenario where you learn a trustee mishandled your trust’s assets. The three-year countdown begins only from the time you discover the beach.
Tolling the statute of limitations
It is also important to note that certain circumstances can toll or pause the statute of limitations. For instance, if someone concealed the breach and you could not have reasonably discovered it, the clock may start ticking only when you become aware.
Taking Action
Figuring out the applicable deadline for your case can be complex, so it is prudent to seek legal counsel. Quick action increases your chances of holding the negligent party responsible for breaching their fiduciary duties.