A fiduciary duty is a legal duty to act in the best interest of another party. With such a broad definition, you must understand your specific responsibility, how it can be applied, and what is expected of you to fulfill your duty.
A fiduciary duty is a legal duty to act in the best interest of another party. With such a broad definition, it can be applied in a multitude of situations. To ensure you are fulfilling your duty, you must understand the duty, how it can be applied, and what is expected of you.
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 principal’s or parties’ behalf. Fiduciaries may not benefit from the relationship with their principals unless they have the principals’ consent. Additionally, fiduciaries have a duty to avoid any conflicts of interest between themselves and their principals or between the principals and any of the fiduciary’s own clients.
Fiduciary relationships can include those between a lawyer and client, a guardian and ward, or more commonly between a director or board of directors and shareholders. Regardless, a fiduciary must always act in the utmost good faith, perfect candor, openness, honesty, and total absence of any concealment or deception.
A breach of fiduciary duty occurs when a fiduciary, such as an officer, director, agent, executor, administrator or trustee, obtains profit through self-dealing or causes losses through a breach of his or her duty. Whether or not a fiduciary duty has been breached is not always cut and dry, because many such relationships involve complex financial and business matters. A careful examination of the details of fiduciary accounts and transactions is required to establish if a breach of duty has occurred.
Because the fiduciary duty is the strictest duty of care recognized by the legal system, you need the experienced fiduciary litigation attorneys at Burford Perry to evaluate your situation. With extensive experience and success in business litigation, our attorneys can properly assess the damages or suggest an equitable solution. Review our selected cases to read more about our victories involving fiduciary liability claims, and contact us today if you are concerned with breach of fiduciary duty.