Breach Of Fiduciary Duty

Have you placed trust and confidence in another to act in your best interest? Has that designated person failed to exercise due care and diligence in executing his or her duties? If yes, they may have breached a fiduciary duty to you, and you may have a claim against them to recover any losses due to their lack of due care.

Unfortunately, there are times when one business partner might actually work against the other’s best interests and might even end up causing some level of financial devastation in the process. If you’ve trusted someone to act in your best interests and they’ve agreed, then they might have a fiduciary obligation to you. Those who violate that obligation might be at risk of providing the other party with the necessary grounds for a breach of fiduciary duty complaint.

Definition Of Fiduciary Duty

When a party places their trust in another party who fully acknowledges and accepts said responsibility, the groundwork is laid for a fiduciary relationship. In order to be legally binding, this relationship has to be laid out via a contract or some other existing law. There’s also the possibility of establishing a relationship that’s legally demonstrated to be fiduciary in nature. For example, an attorney serving a client is by definition a fiduciary relationship.

A fiduciary relationship arises in a number of formal and informal contexts. In such a relationship, good conscience requires the fiduciary to act at all times for the sole benefit and interest of the one who has trusted them. A fiduciary is someone who has undertaken to act for and on behalf of another in a particular matter in circumstances which give rise to a relationship of trust and confidence.

Establishing A Fiduciary Obligation

Before a fiduciary duty exists, the relationship must be defined.. Legally, this relationship must be created via a contract or existing law, or through the establishment of a relationship that has been legally demonstrated to be fiduciary in nature. For the latter, for example, the relationship between an attorney, and their client is by definition fiduciary.

Fiduciary relationships emerge in a number of relationships, including:

  • Attorney/client
  • Executor/heir
  • Business partnership
  • Agent/principal
  • Trustee/beneficiary
  • Corporate officer/shareholder

What Defines A Breach Of Fiduciary Duty

People are able to breach their fiduciary duty in a number of ways that largely depends on the type of relationship being examined. Generally, a breach will happen when a trusted party acts against the best interests of their client or acts in their own interest. 

An attorney who strikes a deal in their own best interest would breach this duty. Someone who is serving as the CEO of a company might buyout a friend’s failing company, which hurts their own shareholders. This would be another breach. In order to establish that a breach has indeed occurred, you need to establish several things:

  • A fiduciary duty existed, to begin with
  • The other party did indeed breach it
  • Proof of the fact that you suffered damages as a result of said breach

Once it’s been established that a breach occurred, the court must determine how much the violated party deserves in damages. Everything comes down to the financial damages you suffer as a result of the breach. If a CEO’s decision to buy a failing business costs shareholders $100,000, they may sue for that amount of money. If an accountant’s breach of duty costs a client $2,000 in late tax fees and penalties, the client may try to recover $2,000 in court.

South Miami Breach Of Fiduciary Duty

Not all fiduciary relationships are so formal. If you’ve ever been placed into a position that involved you trusting someone else to ask in your best interest, then there’s a chance that a genuine fiduciary relationship could have arisen out of the agreement under the laws of the South Miami area. 

If the individual in question acted in a way that wasn’t in your best interest, then they would have violated that trust in spite of the fact that you were dealing with a more casual sort of relationship. This is especially true of anyone who might have found that a significant amount of money or other tangible property was involved in the transaction.

Breach Of Fiduciary Assistance From Trembly Law Firm

Fortunately, there’s help available if there’s a possibility that you’ve suffered some sort of wrong from Trembly Law. You should seek legal counsel immediately to be compensated for the fiduciary’s wrongful actions. A qualified business attorney at Trembly Law Firm can discuss your legal needs and help determine whether you are entitled to monetary compensation from the fiduciary who may have wronged you.

Professional legal help from Trembly Law Firm is offered to those who might be dealing with a breach of fiduciary duty from someone they trusted. Make sure to contact us online today so we can get you in touch with our seasoned law team.

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