Does a non-fiduciary owe a duty not to engage in constructive fraud?

California, United States of America


The following excerpt is from Kidron v. Movie Acquisition Corp., 40 Cal.App.4th 1571, 47 Cal.Rptr.2d 752 (Cal. App. 1995):

A non-fiduciary as well as a fiduciary owes a duty not to engage in actual fraud, but only a fiduciary owes a duty not to engage in constructive fraud. [40 Cal.App.4th 1598] "Constructive fraud allows conduct insufficient to constitute actual fraud to be treated as such where the parties stand in a fiduciary relationship." (Estate of Gump (1991) 1 Cal.App.4th 582, 601, 2 Cal.Rptr.2d 269; accord, Salahutdin v. Valley of California, Inc.

Page 769

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