Is the Bank of California liable for failing to disclose material information to the objectors attorney?

California, United States of America


The following excerpt is from Estate of Anderson, 149 Cal.App.3d 336, 196 Cal.Rptr. 782 (Cal. App. 1983):

The bank's reasoning is defective because it ignores the fiduciary relationship between it and the objectors. A special or fiduciary relationship dictates full and complete disclosure, and short of it, a finding of extrinsic fraud is required. (Jorgenson v. Jorgenson, supra, 32 Cal.2d 13, 19-20, 193 P.2d 728.) It is inescapable that the acts of the bank here in failing to disclose material information, coupled with its avoidance of objectors' attorney, in effect prevented objectors from discovering and presenting the full case in support of their interests. Even under the strict view of extrinsic fraud annunciated in Throckmorton, objectors were denied a meaningful "day in court" and their "knowledge of the suit" was tainted by the bank's outrageous conduct.

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