Breach of Fiduciary Duty Attorneys
Representing Plaintiffs and Defendants in Breach of Fiduciary Duty Disputes
Being able to trust the people you work with is key to a business’s success. Fiduciary duties exist under the law among people in business together to help ensure that trust is not violated.
Litigation may be necessary when someone with fiduciary obligations fails to live up to them. These breaches can potentially cause substantial harm to a business, and a victim has the right to seek damages. At Potts Law Firm, our breach of fiduciary duty lawyers are ready to assist both plaintiffs and defendants in these conflicts. We are well-versed in commercial law and have recovered over $1 billionfor our clients. No matter the scope or complexity of the situation, our team will leverage the full extent of our reach, power, and skill when fighting to deliver a just outcome.
Discuss your breach of a fiduciary duty case in a free initial consultation by calling (888) 420-1299 or contacting us online. Our firm offers same-day appointments and offers services in English and Spanish.
What Is a Fiduciary?
A fiduciary is obligated to act on behalf of one or more beneficiaries. A fiduciary obligation can exist in many types of relationships: a board of directors to shareholders, a bank to clients, or a trustee to trust beneficiaries. When a fiduciary relationship is agreed upon, it is illegal for a fiduciary to take actions that hurt the beneficiary’s interests.
The three core duties of a fiduciary arrangement are:
- Care. The fiduciary must use the utmost care when managing the interests and assets of the beneficiary.
- Impartiality. The fiduciary may not favor one beneficiary over another. All must be treated equally and with disinterest.
- Loyalty. The fiduciary must act only in the interests of the beneficiaries.
A fiduciary relationship is not always clearly stated. In some cases, the existence of one may be assumed or based on subjective information. Before any breach can be proven, the plaintiff must first establish that a fiduciary relationship existed.
In a commercial litigation context, a breach of fiduciary duty will often involve an officer, director, or partner harming a business. The fiduciary will typically do something that benefits themselves at the expense of the parties they are supposed to be serving.
What Are the Legal Remedies for a Breach of Fiduciary Duty?
Someone harmed by the misconduct of a fiduciary may be entitled to damages. Every case is different, and the types and extent of damages may hinge on the nature of the abuse, the nature of the fiduciary relationship, and other relevant factors.
If you were harmed as a result of fiduciary misconduct, our breach of fiduciary duty attorneys will fight for all applicable remedies, including:
- Removal of the fiduciary. A court may order the removal or replacement of a fiduciary.
- Punitive damages. A breaching fiduciary may be required to pay punitive damages to the parties they harmed.
- Denial of fees. A fiduciary may be denied their right to collect fees.
- Surcharges. A court could require a fiduciary to pay money to a trust.
What Duties Does an Officer or Director Owe to a Corporation?
Corporate officers and directors have a fiduciary relationship with their corporation, meaning they must make good-faith efforts to protect the business’s interests. If you are a corporate executive or board member, it is extremely important that you understand your fiduciary obligations and how a court of law could potentially scrutinize your actions.
As fiduciaries, officers and directors owe a corporation a:
- Duty of care. Officers and directors must manage the corporation’s affairs with diligence and prudence.
- Duty of obedience. Officers and directors may not engage in ultra vires acts, which are acts outside the scope of their corporate power.
- Duty of loyalty. Officers and directors may not engage in transactions that they have a personal interest in.
- Duty of disclosure. Officers and directors must be transparent and forthright about material facts with one another and shareholders when exploring transactions.
- Duty of good faith and fair dealing. Officers and directors must act with honesty and fairness as they carry out their corporate duties.
Why Do I Need a Lawyer to Help with Breaches of Fiduciary Duty?
Executives and board members should get legal advice whenever there is any question over whether an action could breach their fiduciary duty to their corporation. With proper guidance, a corporate leader can often avoid allegations of impropriety that might damage their professional reputation and disrupt their company’s operations. If an executive or director is accused of breaching their fiduciary duty, they will need legal professionals to defend them in any resulting litigation. If you have suffered harm due to a breach of fiduciary duty, an attorney can assist with the filing of a lawsuit and attempt to secure the appropriate legal remedies, which may include compensation.
If you are concerned about an executive or director’s conduct, do not hesitate to call (888) 420-1299 or contact us online to explore your legal options with our breach of fiduciary duty attorneys.
When dealing with a case involving a breach of fiduciary duty, it’s all about our power and results. We have an exceptional track record of delivering wins to our clients and understand what it takes to prevail in these cases. With eight locations throughout the United States, our breach of fiduciary duty lawyers can assist you wherever you are. Our team is committed to pursuing the best possible resolution and will put the full extent of our experience, skills, and resources to work for you.
If you are unsure if you have a case, don’t hesitate to call us today for a free consultation. Our team of experienced attorneys are ready to review your claim and fight for you.
Q:What If Someone Promises Me Something, but We Do Not Have a Contract?
If a formal contract does not exist, you may still have a claim related to a promise in some states.
In a claim for promissory estoppel, a person may be able to recover if they can show:
- The existence of a promise
- Foreseeability of reliance thereon by the promisor
- The promise materially and substantially changed their position in reliance on that promise
Q:What Is Unjust Enrichment?
Unjust enrichment, sometimes called “quantum meruit,” is a quasi-contractual claim. It allows a person or business to recover when (1) valuable services were rendered or materials were furnished, (2) for the person sought to be charged, (3) which services and materials were accepted by the person sought to be charged, used and enjoyed by him, (4) under such circumstances as reasonably notified the person sought to be charged that the person in performing such services, was expecting to be paid by the person sought to be charged.
Q:What is “Specific Performance” as a Legal Remedy?
If a monetary legal remedy is not sufficient compensation for a breach of contract, a court will sometimes require “specific performance.” This means the breaching party will be required to carry out the services outlined in the original agreement to the best of their ability.
Q:What are Legal Remedies?
A legal remedy is the enforcement of a right or penalty by a court of law.
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