Breach of Fiduciary Duty, Fraud & Fraudulent Inducement

It is well-settled law that the marital relationship is one of the most confidential of relationships. In the context of claims for breach of fiduciary duty and fraud claims between spouses, the issue of whether the confidential relationship still existed at the time of the transaction, or whether the parties were adversaries and thus no longer in a fiduciary relationship, is a crucial issue.

Most appellate cases involving breach of fiduciary duty and fraud claims between spouses arise in the context of claims to set aside separation agreements or for damages related to a party’s failure to disclose assets in the negotiations leading up to the execution of the agreement100 N.C. App. 686, 398 S.E.2d 340 (1990) (same). But North Carolina has also recognized these claims relating to other property transactions as well. A claim for breach of fiduciary duty is permitted only where the plaintiff alleges a “specific transaction” between the parties.