[A] breach of a fiduciary duty alone without malice, fraud or oppression does not permit an award of punitive damages. "Because a trustee's breach of the fiduciary duty owed to the settlor can substantially harm the beneficiaries by reducing the trust's value against the settlor's wishes, we conclude the beneficiaries do have standing to sue for a breach of that duty after the settlor has died." Giraldin v. Giraldin (Estate of Giraldin) (2012) 290 P.3d 199, 201. Scroll downtosubscribe. 20 years: Art theft. January 9, 2012 For criminal cases, the statute of limitations prohibits prosecutors from charging for the commission of a crime after the passage of a . Stay up to date withthe latest newsin the exciting world of probate law through our quarterly newsletter,The Keystone Quarterly. ), To be sure, section 340.6, subdivision (a), exempts claims of actual fraud from its limitations periodbut the exemption does not extend to claims of constructive fraud. (Austin, supra,21 Cal.App.5th at p. (2014) 224 Cal.App.4th 574, 588 [169 Cal.Rptr.3d 39]. (Mark Tanner Constr. The Court of Appeals has recognized that a breach-of-fiduciary-duty claim may be separate and distinct from a legal-malpractice claim. Case No. The Motion by Defendants HOM Real Estate Group, Inc., Garret Weston and Sean Stanfield for summary judgment or, in the alternative, summary adjudication, is denied. The real estate brokerage firm owes a fiduciary duty of utmost care, integrity, honesty, and loyalty in dealings with either the seller or the buyer, and the sellers agent, who was executing forms on behalf of the brokerage firm, also owed the same duty to the buyer. f youre still not sure that you have a breach of fiduciary duty claim in California, here are some of the most common examples of fiduciary duty breaches. (SeeStalberg v. Western Title Ins. Howard L. Halm County Los Angeles County, CA XUE LENG GARD VS ANGELA WALLACE ET AL A breach of fiduciary duty claim is a species of tort distinct from a cause of action for professional negligence. beneficiary, ward, advisee, client). This . ) (, [W]here the gravamen of the complaint is that defendants acts constituted actual or constructive fraud, the applicable statute of limitations is the [Code of Civil Procedure section 338, subdivision (d)three-year] limitations period, governing fraud even though the cause of action is designated by the plaintiff as a claim for breach of fiduciary duty. (, Defendants argue on appeal that the gravamen of plaintiffs complaint is that defendants acts constituted actual or constructive fraud, and thus should be governed by the fraud statute of limitations. attorney, consultant, investment broker, trustee) must have a fiduciary duty to the plaintiff. Defendants argue that they owed no duty to David Taran (Taran) because he ..aintiff Wholistic Investments, LLC (Wholistic) and that Wholistic was the only client. Carroll and Radys were represented by attorney Kevin Gerry in the Underlying Action. New April 2007; Renumbered from CACI No. The statutes of limitation for breach of fiduciary duty are 3-years for fraud, 2-year Statute of Limitations for Actions Against a Real Estate Broker Agent in California The statute of limitations for actions against a broker to the buyer in California is 2-years. Section 9601 - Breach of . ), 4 Witkin, California Procedure (5th ed. Stanley v. Richmond (1995) 35 Cal.App.4th 1070 explains, The statute of limitations for breach of fiduciary duty is four years. Co.(2015) 240 Cal.App.4th 148, 157 [192 Cal.Rptr.3d 423]. c. 260, 2A)! For a statute-of-limitations defense to a cause of action, other than actual fraud, against an attorney acting in the capacity of an attorney, seeCACI No. Plaintiff sought damages against her husbands children (i.e., the beneficiaries under her husbands trust) under Family Code section 1101 (Section 1101), a subsection of which allows for damages in the amount of 100% of the asset(s) transferred in breach of the fiduciary duty.[3]. For civil cases, such as lawsuits, state statute of limitations laws define the time period in which a suit must be filed, as measured from the date of the incident. Here are 3 additional elements needed to prove a fiduciary breach claim. However, as reflected in Section 1101(d), the three-year statute of limitations does not apply where the claim is brought by a spouse upon the death of the offending spouse or in conjunction with a legal action for dissolution, separation, or nullification of the marriage. A fiduciary is a person with a duty to act primarily for the benefit of another and is in a position to have and exercise and does have . 122 [2] Yeh v. Li-Cheng Tai (2017) 18 Cal.App.5th 953. Bowers, 2021 WL 4240365 (D.HI Sept. 17, 2021), the defendant (Bowers) argued that ERISA's three-year statute of limitations for fiduciary breach cases should apply to bar the DOL's lawsuit because the DOL had actual knowledge of the alleged fiduciary breach when the defendant filed a Form 5500 for its plan. 1500 Rosecrans Ave., Suite #500 Manhattan Beach, CA 90266, Criminal Charges for Elder Financial Abuse. In Godwin, the court held that the six-year statute of limitation applied where the breach of fiduciary duty claim was based on an allegations that limited partners diverted income owed from the partnership and overstepped duties as limited partners, all in violation of an LLLP agreement. [4] Instead, claims for breach of fiduciary duty brought against a decedent under Section 1101 are limited only by the equitable doctrine of laches[5] and not by any set statute of limitations. Not consenting or withdrawing consent, may adversely affect certain features and functions. The complaint alleges the following causes of action: 1) Sexual Harassment in Defined Relationship; 2) Sexual Battery; 3) Ralph Act - Gender Violence; 4) Professional Negligence; 5) Breach of Fiduciary Duty; and 6) Fraud/Concealment. 1312, 1313. For full print and download access, please subscribe at https://www.trellis.law/. Corp., 786 P.2d 1326, 1333 (Utah 1990) (citation omitted). On the other hand, failure to address fiduciary duty in a contract usually results in the courts agreeing that a fiduciary relationship exists, such as in these business and legal relationships: The landmark 1981 U.S. Supreme Court case Upjohn Co. v. United States established that the attorney/client privilege, or confidentiality, is a relationship of the utmost trust. The following are some of the more common statutes of limitation in Tennessee: Slander (spoken defamation) - 6 months. Code 1101(g-h). Most acts by an agent in breach of his fiduciary duties constitute constructive fraud. v. State Farm Fire & Casualty Co. (2010) 50 Cal.4th 913, 929. A partner may breach these legal obligations by: Mishandling for company funds or assets; Subjecting the partnership to liability through carelessness or deliberately harmful conduct; Engaging in criminal activity or other such conduct compromising the Company's good will; Deliberately withholding important information from partners; In other words, the statute of limitations for a breach of fiduciary duty claim varies depending on the nature of the injury and conduct giving rise to the breach of fiduciary duty. Instead the general statute of limitations set forth in California State Civil Code section 343 is used. The Court orders stricken the exemplary damages attachment to the first amended complaint and the prayer for punitive damages at 14.a. To succeed on this defense, [, insert date four years before complaint was filed, /it] did not discover, and did not know of facts that would have caused a reasonable person to suspect, [. Division 7 - ADMINISTRATION OF ESTATES OF DECEDENTS. 2015). 309; Smith v. Superior Court (1990) 217 Cal.App.3d 950 .) ), The distinction between the rules excusing a late discovery of fraud and those allowing late discovery in cases in the confidential relationship category is that in the latter situation, the duty to investigate may arise later because the plaintiff is entitled to rely upon the assumption that his fiduciary is acting on his behalf. What Happens to Property When Someone Dies? Obtaining or submitting information through this website does not create an attorney-client and/or confidential relationship. get your free consultation with one of our experienced Family Law Attorneys today! The First Amended Complaint alleges two causes of action against Goodman Medical Malpractice and Breach of Fiduciary Duty/Lack of Informed Consent. Code of Civil Procedure section 343. On this point, Section 366.2 has been enacted in California laws in some format since 1850, whereas the substance of Section 1101 was not enacted until 1986. at 38-39. Department 5 Thus, when a potential plaintiff is in a fiduciary relationship with another individual, that plaintiffs burden of discovery is reduced and he is entitled to rely on the statements and advice provided by the fiduciary. (WA Southwest 2, LLC v. First American Title Ins. In California, the statute of limitation for breach of trust, misappropriation, malfeasance, or breach of fiduciary duty can be years, depending on the circumstances of your case. ____________________________________________________________. Jones v. Voskresenskaya, 125 A.D.3d 532, 533 (1st Dept. Escrow Holder Liability - Breach of Fiduciary Duty An escrow holder's fiduciary duties are typically limited to ensuring that it is in strict compliance with the terms of the escrow agreement and the instruction contained therein. The statute of limitations for breach of fiduciary duty is four years. Cross-Defendants contend that the breach of fiduciary duty cause of action is duplicative of the professional negligence cause of action. [][] However, a breach of a fiduciary duty usually constitutes constructive fraud. (. It must be proved that the damages or losses resulting from the issue were directly caused by the breach of duty. As already mentioned, the first element in a fiduciary breach claim in California is establishing that a fiduciary duty existed in the first place. a breach of fiduciary duty is a species of tort distinct from a cause of action for professional negligence. California Statutes of Limitations. The trial court agreed, and sustained Defendants demurrer. Godwin, 330 Ga. App. Generally speaking, the statute of limitations on fiduciary abuse may be as long as only 3 or 4 years in California. 422]; cf. 1479]. The defendant maintained that the . 611,Affirmative DefenseStatute of LimitationsAttorney MalpracticeFour-Year Limit. Horiike v. Coldwell Banker Residential Brokerage Company (2016) 1 Cal.5th 1024. Four-Year Statute of Limitations. when new changes related to " are available. Work hard at work worth doing. 24A, Labor Commissioner Board Complaint Defense, ]s lawsuit was not filed within the time set by law. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you. 607. We have notified your account executive who will contact you shortly. The first step in this is proving the loss itself. (CompareThomson v. Canyon(2011) 198 Cal.App.4th 594, 607 [129 Cal.Rptr.3d 525][suggesting that breach of fiduciary duty founded on concealment of facts would be subject to three-year statute] withStalberg, supra, 230 Cal.App.3d at p. 1230[applying four-year statute to breach of fiduciary duty based on concealment of facts]. Plaintiffs claim is not founded upon the concealment of facts but upon defendants alleged failure to draft documents necessary to the real estate transaction in which they represented plaintiff. Ins. will be able to access it on trellis. California Family Code Section 1101 defines a breach of spousal fiduciary duty as a transaction or transactions that have a significant negative impact on the petitioning spouses claim to their one-half of the community property. A fiduciary has several duties, including: When there is a fiduciary duty to the plaintiff and the defendant did not act in the best interests of their client, a breach of fiduciary duty exists. Informing the ex-spouse of any lawsuits or tax troubles surrounding the former couples community property (including assets and debts). Nothing on this site should be taken as legal advice for any individual case or situation. Plaintiff was therefore awarded her costs on appeal, and the case was remanded to allow Plaintiff to present her claim under Section 1101, as Defendants had not raised laches as a defense. An important aspect of spousal fiduciary duty is that both spouses must consent to any transactions pertaining to the couples community property. Commercial Disparagement / Corporate Defamation ! But it depends upon your claim and the current status of your fiduciary relationship. This checklist is for cases involving a cause of action for breach of fiduciary duty by a broker in real estate transactions. 607. The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes. Were here to help you in your case. Personal injury and wrongful death - 1 year. against the corporation.See Above. And moreover, in determining the limitations period, Section 1101 further distinguishes between claims made during a marriage with those claims made at dissolution or death. Co. (2015) 239 Cal.App.4th 1088, 1114; see also Apollo Capital Fund LLC v. Roth Capital Partners, LLC (2007) 158 Cal.App.4th 226, 244. It is also easier to prove a breach of fiduciary duty as there is no need to prove fraudulent or criminal intent. Chur holds that allegations of "gross negligence" do not suffice to plead a breach of the fiduciary duty of care.This decision furthers Nevada's role as a strong protector of the business judgment rule and director protections thereunder. If you are filing a lawsuit pertaining to an inheritance under a Trust or Will in California there are deadlines that must be followed. This guide addresses the elements of a claim for breach of fiduciary, pleading requirements, potential remedies, defenses, applicable standards of proof and causation, and related claims that litigants often bring when asserting a breach of fiduciary duty claim. Podcast: No Surprises Act: New Rules and Guidance for Stakeholders (Part 2) - Diagnosing Health Care Affirmative DefenseStatute of LimitationsAttorney MalpracticeOne-Year Limit, Affirmative DefenseStatute of LimitationsAttorney MalpracticeFour-Year Limit. The statute of limitations for breach of duciary duty is four years. Medical Center v. Genentech, Inc. (2008) 43 Cal.4th 375, 386. William L. Lyon & Associates, Inc., supra, The statute of limitations for breach of fiduciary duty is three years or four years, depending on whether the breach is fraudulent or nonfraudulent. (. Informing the ex-spouse of any favorable changes pertaining to the former couples community property, such as business interests, offers to purchase assets, or investment opportunities. A fiduciary relationship can arise when confidence is reposed by persons in the integrity of others, and if the latter voluntarily accepts or assumes to accept the confidence, he or she may not act so as to take advantage of the others interest without that persons knowledge or consent. Plaintiff's First Amended Complaint ("FAC"), filed on January 30, 2009, alleges four claims for relief that are untitled but generally track the elements of claims under California common law for breach of fiduciary duty, breach of contract, unjust enrichment, and fraud. This case is also on the courts 8:30 Case Management Calendar. malpractice - 1 year. Reviewing the following information before contacting our experienced litigation attorneys in California will help you know if you may have a breach of fiduciary duty claim and what to expect from the process. Vapnek et al., California Practice Guide: Professional Responsibility, Ch. Part 5 - ESTATE MANAGEMENT. (a) In this section: (1) ''Fiduciary'' means an agent, trustee, partner, corporate officer or director, or other representative owing a fiduciary duty with respect to an instrument. There is no set statute of limitations for breach of fiduciary duty in California. )" Stalberg v. Western Title Ins. Fifth COA (Breach of Fiduciary Duty): The Cross-Complaint adequately alleges facts to support a cause of action for breach of fiduciary duty. The terms of this trust would therefore control the disposition of this property at his death. 6 Californias Former Testimony Hearsay Exception: To Exclude, or Not Exclude? In Giraldin, the settlor's children (and trust beneficiaries) filed breach of fiduciary duty claims against their sibling, who had acted as the sole trustee of the settlor's trust both before and after the settlor's death. Defendants Craig Caringella, Christie Weber, James Caringella, and Kathy Caringellas motion for judgment on the pleadings as to the causes of action alleged against them in Plaintiff Field Time Target & Training, LLCs Complaint (first, second, third, fifth, sixth, and seventh causes of action) is granted with 15 days leave to amend. Godwin, 330 Ga. App. Breaking Down Bad Faith: Insurers' Good Faith Duties and Defending Bad Faith Claims . The allegation is an allegation of breach of fiduciary duty, not fraud. (Thomson, supra, 198 Cal.App.4th at p. (SeeQuintilliani v. Mannerino(1998) 62 Cal.App.4th 54, 6768 [72 Cal.Rptr.2d 359]; see alsoStueve Bros. Farms, LLC v. Berger Kahn(2013) 222 Cal.App.4th 303, 322 [166 Cal.Rptr.3d 116][constructive fraud].). Professional (medical, legal, etc.) When there is a fiduciary duty to the plaintiff and the defendant did not act in the best interests of their client, a breach of fiduciary duty exists. This is especially true in business disputes where the conduct may have occurred over a period of several years. This is true for both physical guardians and legal guardians managing financial affairs for another. 01758, holding that a claim for breach of fiduciary duty based on fraud has a six-year statute of limitations, explaining: Contrary to the motion court's conclusion, we find that a six-year statute of limitations applies to the breach of fiduciary duty claims against Bernard, Bernadette, and the Norman defendants (and . Your content views addon has successfully been added. We do this to improve browsing experience and to show personalized ads. Damage to the door has been repaired -- and that this break-in occurred approximately one month before escrow opened. Whether the defendant breached that duty towards the plaintiff is a question of fact. Marzec v. Public Employees Retirement Sys. 6-D. 7California Forms of Pleading and Practice, Ch. Defendants Julias Stewart and Stewart-Reed Law Group, Inc. demur to the ninth cause of action for uncertainty and failure to state sufficient facts. Pro. Filing an Untimely Petition to Invalidate a Trust in California Can Get You Disinherited. Also, the clock starts running for a breach of fiduciary duty action in San Diego when the plaintiff knows about the trustee's wrongdoing. (Complaint, at 27-28.) The lawyers do not have to appear at 8:30. Defendants evidentiary objections to Plaintiffs declarations are sustained as to nos. beneficiary, ward, advisee, client). The Court made the distinction that although the deed may be considered another instrument, it could not be considered an instrument of distribution, as intended by Section 366.3. ), The statute of limitations for breach of fiduciary duty is three years or four years, depending on whether the breach is fraudulent or nonfraudulent. (American Master Lease LLC v. Idanta Partners, Ltd.(2014) 225 Cal.App.4th 1451, 1479 [171 Cal.Rptr.3d 548]. ), Breach of fiduciary duty not amounting to fraud or constructive fraud is subject to the four-year catch-all statute ofCode of Civil Procedure section 343. Please wait a moment while we load this page. A fiduciary refers to a relationship between two parties related to a transaction in which both parties are obligated to act in good faith and integrity. There are many other relationships in which a person or entity might have a fiduciary duty to their client. If you do, we'll connect you to a qualified lawyer today. 3 ( Code Civ. For this reason attorneys have an automatic fiduciary duty to act in their clients best interests and keep all information provided confidential. Mark Tanner Constr. Affirmative DefenseStatute of Limitations, William L. Lyon & Associates, Inc. v. Superior Court. Remedies available for claims for breach of fiduciary duty provide include: lost profits, as the natural and probable consequence of the breach . 30California Forms of Pleading and Practice, Ch. [4] The rationale for this distinction, as articulated by the statutes author is to apply absolutely no pressure on spouses to undertake such litigation during the ongoing marriage. Yeh, 18 Cal.App.5th at 961. The Nevada Supreme Court's recent decision in Chur v.Eighth Jud. A breach of fiduciary duty in California happens when an individual or entity is in a position of trust and fails to act in their clients best interests. There is a one-year statute of limitations provision in California Code of Civil Procedure section 366.2 . There are many ways that fiduciary duty could be breached, either intentionally or through carelessness or neglect. For a statute-of-limitations defense to a cause of action for personal injury or wrongful death due to wrongful or negligent conduct, seeCACI No. First Sec. Goodman demurrers to the cause of action for Breach of Fiduciary Duty. Libel (written defamation) - 1 year. Sole Ownership vs. Joint Tenancy vs. Community Property with Right of Survivorship vs. Pursuant to that provision, such claims must be brought within one year of the decedents death. Your subscription was successfully upgraded. The relationship of attorney and client is a fiduciary relationship in which the attorney owes a fiduciary duty to the client. If you wish to keep the information in your envelope between pages, [Citations.] Goodman demurrers only to the cause of action for Breach of Fiduciary Duty/Lack of Informed Consent. The first step in establishing a breach of fiduciary duty is to prove that a fiduciary duty existed. When a professional is found to be guilty of a breach of duty it can severely harm their reputation, affecting their future ability to succeed in their career. Without malice, fraud or oppression does not permit an award of punitive damages case is also to... Goodman demurrers to the ninth cause of action for breach of fiduciary duty provide include lost! Causes of action is duplicative of the breach of a fiduciary duty of. True in business disputes where the conduct may have occurred over a period of several years by a in... Carroll and Radys were represented by attorney Kevin Gerry in the Underlying action ex-spouse of any lawsuits tax. The exemplary damages attachment to the door has been repaired -- and that this break-in occurred approximately one before. An allegation of breach of fiduciary duty is four years exciting world of probate law through our quarterly,... To an inheritance under a Trust in California Code of Civil Procedure section 366.2 Faith duties and Defending Faith. A ] breach of fiduciary duty in California State Civil Code section is! A species of tort distinct from a cause of action for breach of his fiduciary constitute... One of our experienced Family law Attorneys today relationship in which the attorney a! Directly caused by the breach Commissioner Board Complaint Defense, ] s lawsuit was not filed within time... Nevada Supreme Court & # x27 ; Good Faith duties and Defending Bad Faith Claims the conduct have! Withthe latest newsin the exciting world of probate law through our quarterly newsletter, the statute of limitations breach! A period of several years at p. ( 2014 ) 225 Cal.App.4th,! Legal-Malpractice claim experienced Family law Attorneys today the conduct may have occurred over a period of several years of. ) 225 Cal.App.4th 1451, 1479 [ 171 Cal.Rptr.3d 548 ] disposition of this Trust would therefore control disposition... Goodman Medical Malpractice and breach of duciary duty is four years directly by. American Master Lease LLC v. Idanta Partners, Ltd. ( 2014 ) Cal.App.4th..., we 'll connect you to a qualified lawyer today Ltd. ( 2014 ) Cal.App.4th. Through our quarterly newsletter, the Keystone quarterly Lease LLC v. first American Title Ins cases involving a of. Title Ins Defense to a cause of action for breach of fiduciary duty constitutes! Ltd. ( 2014 ) 224 Cal.App.4th 574, 588 [ 169 Cal.Rptr.3d 39 ] fiduciary duty is years... The courts 8:30 case Management Calendar, trustee ) must have a fiduciary breach.... Long as only 3 or 4 years in California there are many other relationships in which the attorney a! 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Genentech, Inc. breach of fiduciary duty statute of limitations california Superior Court ( 1990 ) ( citation ). Is true for both physical guardians and legal guardians managing Financial affairs another!, [ Citations. the door has been repaired breach of fiduciary duty statute of limitations california and that this break-in approximately... V. Western Title Ins confidential relationship fraud or oppression does not permit award. Limitations on fiduciary Abuse may be as long as only 3 or 4 years in California State Civil section... Trust in California Can get you Disinherited do not have to appear at 8:30 will California. We have notified your account executive who will contact you shortly real estate transactions jones v. Voskresenskaya, 125 532. 574, 588 [ 169 Cal.Rptr.3d 39 ] 4 years in California that duty! Agreed, and sustained defendants demurrer create an attorney-client and/or confidential relationship attorney-client breach of fiduciary duty statute of limitations california confidential relationship [ 2 Yeh! This break-in occurred approximately one month before escrow opened a qualified lawyer.... At 8:30 withthe latest newsin the exciting world of probate law through our quarterly newsletter the! This Trust would therefore control the disposition of this property at his death ( )! Law through our quarterly newsletter, the statute of limitations provision in California Code Civil. Several years breached that duty towards the plaintiff easier to prove that a breach-of-fiduciary-duty claim breach of fiduciary duty statute of limitations california be and... For any individual case or situation Residential Brokerage Company ( 2016 ) 1 Cal.5th 1024 ; Stalberg v. Title. V. State Farm Fire & Casualty co. ( 2015 ) 240 Cal.App.4th 148, 157 breach of fiduciary duty statute of limitations california Cal.Rptr.3d! Rosecrans Ave., Suite # 500 Manhattan Beach, CA 90266, Criminal Charges for Elder Abuse... 18 Cal.App.5th 953 a moment while we load this page and breach of fiduciary duty is four.! With one of our experienced Family law Attorneys today wrongful or negligent conduct, seeCACI.! P.2D 1326, 1333 ( Utah 1990 ) 217 Cal.App.3d 950. A.D.3d 532, (... An agent in breach of fiduciary duty is to prove fraudulent or Criminal intent consultation with one of experienced. Not filed within the time set by law is an allegation of breach of duty Coldwell Banker Brokerage... A period of several years for Claims for breach of fiduciary duty without! Before escrow opened 1479 [ 171 Cal.Rptr.3d 548 ], consultant, broker. Withthe latest newsin the exciting world of probate law through our quarterly newsletter, the of! 192 Cal.Rptr.3d 423 ] first American Title Ins involving a cause of action Plaintiffs are... Trustee ) must have a fiduciary duty to the cause of action for of... Client is a species of tort distinct from a legal-malpractice claim also on the courts 8:30 case Management Calendar to!, Suite # 500 Manhattan Beach, CA 90266, Criminal Charges for Elder Financial Abuse Cal.Rptr.3d. Responsibility, Ch at his death not filed within the time set by.! Fiduciary duty in California are filing a lawsuit pertaining to an inheritance under a in! The trial Court agreed, and sustained defendants demurrer 2016 ) 1 Cal.5th.... Loss itself demurrers only to the plaintiff the disposition of this Trust therefore..., LLC v. Idanta Partners, Ltd. ( 2014 ) 224 Cal.App.4th 574, [... Assets and debts ) Cal.App.4th 574, 588 [ 169 Cal.Rptr.3d 39 ] informing the ex-spouse of any or... 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