A fiduciary duty is the strictest duty of care recognized by the legal system. Because of this, it is incredibly important that fiduciaries fulfill their responsibilities correctly and faithfully. Many people would be surprised by how broadly fiduciary duty can be applied and how unintentional actions could cause a breach. Here is everything you need to know about fiduciary duty, whether you were appointed a fiduciary or principal (the party to whom the fiduciary owes a duty).
Defining Fiduciary Duty
Fiduciary duty is broadly defined as the legal duty of one with superior knowledge and/or power to act in the best interest of another party. It’s pretty easy to see how broadly this can be applied; however, there are a few parties commonly serving as fiduciaries in relationships with those they serve. These include:
- Real Estate Brokers
- Corporate Officers
One of the most common breaches of fiduciary duty has to do with conflicts of interest. You wouldn’t want your real estate broker making recommendations that also benefited him. This might make him more inclined to make recommendations that aren’t necessarily best for you, but are good for him. Any conflict of interest or self-dealing is not allowed in a fiduciary relationship.
When fiduciaries do not put their principals’ best interests first, they can be found responsible for breaching their fiduciary duties. Breaches are not always intentional. Sometimes, fiduciaries fail to do their due diligence before making a big decision. While this isn’t done maliciously, it still constitutes a breach. But, just because principals suffer damage from a fiduciary’s decision doesn’t mean a breach has occurred.
Breaches Are Complicated
Fiduciaries make many important decisions on behalf of their principals. Fiduciaries can’t always predict the outcome of a decision, but they are expected to exercise reasonable caution and to be fully informed before making any decisions. If a breach is suspected, it will require the help of an experienced breach of fiduciary duty lawyer. A lawyer will be able to investigate the circumstances surrounding the breach and determine if the fiduciary can be held responsible for any resulting damages.
Breach of Fiduciary Duty Attorneys
If you have been accused of breaching your fiduciary duty or if you believe your fiduciary’s actions constitute a breach, Feldman & Feldman can help. Contact us today to schedule an appointment with one of our dedicated breach of fiduciary duty attorneys.