There are a number of situations in which one individual owes a duty or responsibility to act for the benefit of another party. This is referred to as a fiduciary duty and it is a legal responsibility, so failing to fulfill this duty can have serious consequences.
At Feldman & Feldman, our breach of fiduciary duty lawyers understand the complexities and nuances of how the fiduciary relationship works and can represents clients in pursuing or defending against these claims.
What Is Fiduciary Duty?
Fiduciary duty is the strictest duty of care recognized by the legal system. It is broadly defined as the legal duty of one with superior knowledge and/or power to act in the best interest of another party. Fiduciaries, or the parties owing this duty, have a special relationship with the principals or the parties to whom they owe the duties, wherein they act on the principals’ or parties’ behalf. However, fiduciaries may not benefit from these relationships unless they have the principal’s express consent. Fiduciaries must also avoid conflicts of interest between themselves and their principals or between the principals and any of the fiduciary’s own clients.
While almost anyone can be appointed a fiduciary, a fiduciary duty applies to professionals like accountants, real estate brokers, and lawyers. If any of these professionals failed to act in your best interest, they likely breached the fiduciary duty owed to you as your agent. However, fiduciary liability can also be applied to members of a limited partnership, corporation, or limited liability corporation, directors, and shareholders.
Breach of Fiduciary Duty
Fiduciaries are expected to always act in the utmost good faith, perfect candor, openness, honesty, and with a total absence of any concealment or deception. Any time a fiduciary has obtained profit through self-dealing or by causing a loss, he or she may be held accountable for breaching their duty. However, determining whether or not a breach has occurred is not always cut and dry.
Why Feldman & Feldman?
The attorneys at Feldman & Feldman handle allegations of breach of fiduciary duty very carefully. We understand these claims often involve delicate situations, so we work efficiently to protect your interests while exploring all options for resolution. If you have been accused of breaching your fiduciary duty or if you believe your fiduciary’s actions constitute a breach, contact us today to schedule a consultation.