What Is Breach Of Fiduciary Duty?

If you’ve been in the business world for a few years, you might have heard the term “breach of fiduciary duty.” And if you’ve heard this term being thrown around, you might be involved in some kind of legal dispute. But what does this actually mean? What if someone accuses you of this offense? What if someone else is hurting your business by breaching their fiduciary duty? These are all important questions, and you can receive accurate, clear answers from a qualified attorney who has experience with commercial litigation.

Get in touch with a commercial litigation attorney in Miami, and you can tackle this issue in an efficient, confident manner. Although a little bit of internet research certainly doesn’t hurt, you’ll need to book a face-to-face consultation with an attorney in order to plan out your next moves effectively. With help from a qualified business litigation lawyer, you can protect your company and deal with legal disputes effectively.

What is a Fiduciary Duty? 

A party is said to have a fiduciary duty when they are expected to act in a reasonably efficient manner on behalf of another party. Usually, this other party is their client. If you have a fiduciary duty, someone is trusting you to act in their interests. In the United States, this relationship is enforced by law. If you have been designated as a fiduciary, this means that you have a legal duty, and you have accepted the responsibility of acting in their best interests. Those who have a fiduciary duty have a duty of loyalty and a duty of care. 

Who Can Breach Fiduciary Duty? 

There are a number of different people who may be involved in this type of lawsuit. Attorneys and financial advisers are often accused of breaching fiduciary duty. However, spouses also technically have a fiduciary duty to one another, and this issue may arise if one spouse conceals assets from the other. Employers are sometimes sued by their employees for breaching fiduciary duty. But in the world of commercial litigation, the most relevant example is probably a company executive being sued by stockholders for breaching their fiduciary duty. 

What Are Some Examples of Breach of Fiduciary Duty? 

Sometimes, employees are accused of breaching fiduciary duty – especially if they use trade secrets to set up businesses that compete with their former employers. Banks can face breach of fiduciary lawsuits for aiding in the embezzlement of funds from corporations, but only if the plaintiffs can prove that these banks were aware of what they were doing. Real estate organizations have also been sued in Miami for breach of fiduciary duty.

Enlist the Help of a Qualified Attorney Today

For help from a skilled Miami business and financial dispute lawyer, contact Alhalel Law. Over the years, we have helped numerous organizations protect themselves against legal actions, such as breach of fiduciary duty lawsuits. We can also help you hold other organizations accountable if they have breached their fiduciary duty in a way that negatively affects your business. Get in touch today, and we can guide you through your legal options.

Resource:

investopedia.com/ask/answers/042915/what-are-some-examples-fiduciary-duty.asp#:~:text=A%20breach%20of%20fiduciary%20duty%20occurs%20when%20a%20principal%20fails,a%20license%20and%20monetary%20penalties