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Breach of Fiduciary Duty Litigation

As a business owner, you put a lot of trust in fiduciaries. Fiduciaries are individuals who have a duty to act in the best interests of your business. The existence of businesses’ fiduciary relationships can arise in several circumstances. Unfortunately, when a party breaches their fiduciary duty, it can cost your business as well as you. The good news, however, is that there are options if you experience a breach of fiduciary duties. If a fiduciary fails to act in the best interest of your business but instead acts selfishly, thus costing your business and you as an individual, contact an experienced business litigation attorney to help you understand your legal options.

Examples of Fiduciaries

As mentioned already, the existence of businesses’ fiduciary relationships can arise in several circumstances. The following are some examples of people who are considered fiduciaries by businesses;

  • Majority shareholders of a company
  • Partners in a business venture
  • Employees to an employer
  • Managers
  • Directors
  • Financial advisors

The individuals mentioned above and others not mentioned here have a duty to act in the best interest of your business. When a party breaches their fiduciary duty, they act against the best interests of your business. For instance, suppose your financial advisor recommends a high-risk investment, knowing it is not in your business’s best interest. The financial advisor will have breached their fiduciary duty in such a case. The following are other examples of breach of fiduciary duties;

  • An employee sharing their employer’s trade secrets
  • An employee acting on behalf of a competitor
  • A business partner mismanaging or failing to account for company funds or assets
  • A business partner stealing money from the company
  • A business partner hiding important information from you
  • A fiduciary stealing business opportunities from your company

Consequences of a Breach of Fiduciary Duty

If you believe you have been a victim of a breach of fiduciary duty, you should contact a qualified business litigation attorney as soon as possible. Even if you are unsure whether you are a victim, suspicion is enough to warrant contacting an attorney. The truth is that it can be challenging to identify a breach of fiduciary duty. Usually, determining if a breach of fiduciary duty occurred requires thorough scrutiny of the circumstances and the relationship between the fiduciary and you. This is necessary because the consequences of breaching a fiduciary duty can be significant. In some cases, breaching a fiduciary duty can rise to the extent of criminal activity, meaning that a person can face criminal consequences for breaching their fiduciary duty.

Apart from criminal consequences, the following are other potential consequences of a breach of fiduciary duty;

  • Monetary damages, which can include lost profits and attorney fees
  • A fiduciary can be removed from their position and barred from holding a similar position in the future
  • An injunction ordering the fiduciary to seize engaging in a specific activity

While you are not required to hire a business litigation attorney after a fiduciary breaches their duty, it is best to hire an attorney. Breach of fiduciary duty cases can be challenging and complex to navigate. A skilled attorney can help you navigate the process and achieve a favorable outcome.

Contact Us for Legal Help

If you believe you have suffered a breach of fiduciary duty, contact the skilled business litigation attorney at SAC Attorneys LLP and schedule a consultation.

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