Breach of a Fiduciary Duty
Breach of A Fiduciary Duty is a business tort that occurs when there is a position of trust between someone and the business. A fiduciary duty is a legal obligation of one party to act in the best interest of another. Generally these fiduciary duties arises when someone is in a position where they are entrusted with money, property, or a specific obligation.
Examples of these positions of trust are: agents or brokers, officers, directors, or high level employees.
Fiduciary relationships require the party with the duty to act in good faith. It also prevents the party with the duty from any type of self dealing, conflicts of interest, and abuse of the principle for any personal advantage. If any of these corporate directors, officers, or high level employees use corporate assets or corporate opportunity for themselves, this violates the breach of the fiduciary duty.
When wrongdoing is committed against you or your business, a suit for Breach of a Fiduciary Duty is often a more cunning route than Fraud to win your case. Breach of a Fiduciary Duty does not require proof of criminal or fraudulent intent. Being able to prove that there was a criminal or fraudulent intent can be difficult in a court of law. This allows another route to recovery.
To prove breach of a fiduciary duty, we must prove two things. The action requires proof the defendant held one of these positions of trust that established the fiduciary relationship, and that the defendant breached that duty to benefit personally.
The value of these types of cases is determined by the value of the lost profits to the company, combined with the value of the money earned by the individual.
If you think you have been unfairly treated by someone in a position of power, who violated their fiduciary duty, please feel free to get in touch with the best of San Luis Obispo Business Lawyers at the Ernst Law Group. Consultation is free, and we can help you figure out if you are entitled to compensation.
Photograph Courtesy of jk5854