The Role of Causation in a Breach of Fiduciary Duty Suit
Jan 25 2023 0

The Role of Causation in a Breach of Fiduciary Duty Suit

When you have an agreement with another party to each act in a certain way, and they refuse to hold up their end, that party may have engaged in a breach of fiduciary duty to you. When doing business, typically, there are several different individuals you will rely on to execute their duties appropriately and in good faith. When they fail to do so, not only can it be a great disappointment and a setback, but it can also cause significant financial losses.

If your business suffered as a result of a breach of fiduciary duty, then you may be able to take legal action to recoup the losses you and your business sustained. For help with a legal suit, the California business litigation attorney at the Leiva Law Firm can advise you on your options.

Causation and Fiduciary Duty

The Role of Causation in a Breach of Fiduciary Duty SuitThere are certain elements that must exist for a breach of fiduciary duty to have happened. The first element is that a duty existed and was owed to you by another party. For example, if you hire a new employee, they have a duty to do their job, and you have a duty to pay them for their work. If they do not perform the duties of their job or leak important intellectual property to a competitor, these would be breaches of fiduciary duty by your employee.

The second aspect of a breach of fiduciary duty is when an actual violation of your trust is had, or transgressions against you are made. If you have a relationship with someone, they breached their duty to you, and then you sustained damages or losses as a result, this is a third element that must have happened. For a compensable breach of fiduciary duty claim, damages must be proven.

Last is causation. The damages and losses you endured were a direct consequence of a breach of fiduciary duty. Your damages will have to be directly related to the violation of the other party, or if it can be reasonably inferred that your damages were due to the breach, then this can work too.

Without showing the causation link, a claim will likely not succeed in producing financial compensation. An experienced attorney will be able to evaluate a potential breach of duty situation and determine if all elements exist, making it necessary to file a claim.

You have to have some amount of trust in the people you work with and manage to run your operations. While this is essential and unavoidable, doing so could come with being unlawfully wronged at some point during your career. When you suffered a breach of fiduciary duty, you may have taken on several losses. It is critical to speak with a legal professional trained in complicated business litigation matters like a breach of fiduciary duty when this happens.

Speak with an Attorney at the Leiva Law Firm Today

Business owners in California that have questions or would like assistance filing a civil claim for compensation can meet with a Los Angeles commercial litigation attorney at the Leiva Law Firm by calling (818) 519-4465. You are welcome to schedule a free initial consultation to discuss your situation.

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