In legal terms, when a breach of fiduciary duty happens in a business setting, the fiduciary violates their role with respect to protecting property or money associated with the business. The fiduciary is responsible for taking actions in the best interest of the business. A breach of duty happens when the fiduciary fails to do so. For example, a corporate officer has a defined and specific fiduciary duty to any shareholders that they may have. The implications of a breach of fiduciary duty can be widespread and quite complex.
If you believe you have a breach of fiduciary duty claim in California, you can take your case to the trusted and talented Los Angeles business litigation attorneys at the Leiva Law Firm. The aggressive and strategic team at Leiva Law firm can address issues of misuse or abuse of trust that may have taken place in your company and work to hold those who are culpable accountable for their actions.
How Do You Know if You Have a Breach of Fiduciary Duty Claim?
Business ownership does not always go off smoothly and as planned. There are going to be conflicts to some extent that owners have to deal with and manage. This is true no matter how large or small a business may be. A very common type of internal challenge that can take place in a company is one over the breach of fiduciary duty.
Unless you work alone, and even still in those cases, a business owner will have to collaborate with other professionals to effectively run their operation. This is true whether it is with your accountant or with another entity inside of your business.
When you consult with others regarding complicated and serious business functions you have to be able to trust the counsel, decision-making abilities, and ethics of those parties. While this trust is necessary to keep functions continuing, it can fall short when it is believed that the entity responsible for money or property was in violation of their role and responsibilities.
As a broad overview, a claim of breach of fiduciary duty should have the following components:
- It must be shown that a financial obligation existed. Contracts, written and signed agreements, and other documentation should be in place to show that a fiduciary had specific duties to the company.
- It can be shown that actions that were taken by the fiduciary were not in the best interest of the company. These acts directly lead to a breach of obligations.
- Financial damages did happen and this is because of the breach of fiduciary duty that took place. This violation was the reason that the company sustained this financial harm.
Speak to a California Business Litigation Attorney Today
When a breach of fiduciary duty happens, it can lead to significant financial pitfalls that can irreparably harm a business. These violations are incredibly consequential and must be taken seriously. To learn more about how to address a potential breach of fiduciary duty, please call the Los Angeles business and civil attorneys at Leiva Law Firm today to schedule a free consultation at (818) 519-4465.