What actions constitute a breach of fiduciary duty?

A breach of fiduciary duty occurs when a professional fails to act in the best interest of their client, violating the trust placed in them. This includes actions that can severely harm the client or undermine the professional-client relationship.

Taking actions such as self-dealing, which involves a lawyer benefitting personally at the client’s expense, misappropriating client funds—illegally using a client’s money for one's own purposes—and failing to disclose relevant information that could affect the client's decisions are quintessential breaches of this duty. These actions undermine the fundamental principle of loyalty and honesty that fiduciaries owe to their clients.

In contrast, simply taking a client out to lunch without discussing business does not inherently breach fiduciary duty, as this could be interpreted as a networking or relationship-building effort. Similarly, actions that only lead to client dissatisfaction may not rise to the level of a fiduciary breach unless they involve a failure to uphold the client's interests. Lastly, failing to meet deadlines without notifying the client can create issues of professionalism and client dissatisfaction, but unless it constitutes a gross negligence impacting the client's rights or interests, it does not typically meet the threshold for a breach of fiduciary duty. Thus, option B correctly identifies actions that clearly violate fiduciary responsibilities.