Breach Of Fiduciary Duty
Our attorneys represent businesses, professionals involved in such cases
Managing someone else’s financial assets takes a tremendous amount of skill and training. There’s often a lot at stake as well. That’s why disagreements involving investors and asset managers can often become contentious, especially when such disputes involve allegations of breach of fiduciary duty.
Our experienced attorneys at Eller Tonnsen Bach, LLC thoroughly understand the issues often involved in such legal matters. That’s because we have years of experience working with businesses and investors dealing with such complex business litigation cases. As a result, we’re well versed in the applicable rules and regulations governing such fiduciary matters. We can be your guide and work with you to develop a solution that addresses your legal needs.
What is a breach of fiduciary duty?
A breach of a fiduciary duty involves allegations of someone defined as a fiduciary not acting in the best interests of clients, shareholders or investors. A fiduciary can serve many different roles, including financial advisor, accountant, executor and board member. As a fiduciary, they are legally bound to put their clients’ best interests first.
Legal cases involving a breach of fiduciary duty often fall into two, main categories:
- Breach of duty of care – Duty of care refers to the responsibilities of a fiduciary to offer the most accurate and honest advice to clients about any financial assets under the control of the fiduciary.
- Breach of duty of loyalty – Duty of loyalty refers to a fiduciary not having any conflicts of interest with clients in the role of a fiduciary.
More specific examples of breaches in fiduciary duty include:
- Using a company’s or client’s assets for personal gain.
- Sharing trade secrets acquired as a fiduciary working for a company.
- Failing to follow an investor’s or employer’s instructions.
- Overcharging or double billing for fees.
- Embezzlement of funds.
- Concealing information from investors.
- Insider trading based on knowledge acquired as a fiduciary.
These are just a few examples of a breach in fiduciary duty. Many other allegations of wrongdoing involving fiduciaries often arise. In each case, it’s critical for fiduciaries or other parties involved to take such allegations seriously right from the start. That’s why it’s important to talk to an attorney familiar with this area of the law to learn more about your legal options.
What evidence is necessary for such cases?
Evidence of a breach of fiduciary duty can involve many different elements. In general, in order to build a legal case, three primary elements need to exist in order for a case to move forward. These three elements are:
- Proof that an official fiduciary relationship existed between different parties.
- Evidence of a breach, whether it’s in writing or testimony from individuals involved in the breach.
- Documentation that the breach caused financial harm (legally known as “damages”) to the party that entrusted a fiduciary with responsibility for managing financial assets.
Building a successful legal case involving a breach of fiduciary duty can be challenging. The same is true for responding to such allegations. Often, one side will insist that breach did not occur or that there is insufficient evidence to support such a claim.
Whatever type of case you may be dealing with, make sure you have an experienced attorney on your side that knows how to find evidence proving that a breach occurred. Otherwise, you might have a hard time achieving a positive outcome for your case.
Can a fiduciary be sued for a breach of duty?
The short answer is yes, a fiduciary can be sued by a client or investor for violating the rules and regulations governing fiduciary relationships.
Often, the party filing a breach of fiduciary duty lawsuit is seeking financial restitution for any losses incurred as a result of the breach. In addition, the party filing the lawsuit may also attempt to obtain punitive damages, which is financial compensation meant to punish the fiduciary for violating the law.
Taking legal action or responding to a lawsuit can be complicated. Strict deadlines for taking legal action or responding to a lawsuit often exist as well. That’s why it’s critical to consult with an attorney familiar with this area of the law who can skillfully navigate the legal system on your behalf.
Why you should choose our law firm to represent you
Experience and expertise matter when it comes to choosing an attorney to handle your breach of fiduciary duty case. That’s why many business professionals choose our firm to represent them in such complex legal matters. We understand the law. We know how the legal system works. We’re familiar with effective strategies that produce measurable results.
We also never take anything for granted. We do the detailed work that needs to be done to find the necessary evidence to build the strongest possible legal case. That’s why we have such a strong track record of success. We leave no stone unturned in pursuit of the truth.
Discover what our dedicated legal team can do for you. Contact our law firm and schedule an appointment with one of our attorneys. We have three offices conveniently located in South Carolina and North Carolina.