Breach of Fiduciary Duty Lawyer
In business, it is common to have many types of relationships that constitute fiduciary duty. This is an obligation by a business professional to act in the best interest with another professional or business entity. Businesses typically have fiduciary duty relationships with partners, major stockholders, accountants, attorneys, trustees and other business professionals that owe loyalty to the business. When a fiduciary duty is breached, it can cause financial and other harm to the business.
Fiduciary duty is created when a business relies on a professional or entity for their expertise, confidence and judgement. It is an understanding that the professional, such as an accountant, attorney or partner, will act only in the best interest of the business to whom they owe fiduciary duty. When this duty is breached by a professional acting in their own best interests, not that of the company, legal action can be pursued to recover damages.
Types of Breaches of Fiduciary Duty
Lawyers and accountants are two professionals that owe fiduciary duty to their clients. Businesses rely on the discretion and loyalty of these professions to protect their financial interests. If a lawyer uses information gained from a business client to help another client, or to benefit themselves, this is a breach of fiduciary duty. The same is true of an accountant that uses their position to embezzle or to create false accounting for their self-interest.
Any fiduciary relationship can be breached and cause damages. Institutions such as banks, title companies or real estate brokers can use confidential information as fiduciaries for gain, causing economic harm to a business. When these breaches occur, the fiduciary can be sued for damages caused under business tort law.
If your business has suffered financial damages caused by a breach of fiduciary duty, contact our business legal team at Conley Griggs Partin LLP. We will use our extensive experience in business torts and fiduciary duty law to protect your business and pursue damages caused by a breach of fiduciary duty.