Dishonest Assistance Law and Legal Definition

Dishonest assistance is a third party liability under trust law. It is also known as knowing assistance. When a person dishonestly assists other in a breach of trust, that dishonest assistant will be directly liable. In order to constitute dishonest assistance,

1 There should be a breach of trust or fiduciary duty by a third party

2. Third party commits the breach with the defendant’s assistance.

3. Defendant assisted the third party with a dishonest mind.

Defendant and the third party are severally liable. The liability for dishonest assistance is secondary which means that the dishonest assistant will be liable for the gains of the defaulting fiduciary or trustee, while the fiduciary or trustee will not be liable for secret profits of the dishonest assistant.