Representation For Actions Involving Breach Of Fiduciary Duty

In the business world, there are several types of relationships that create a fiduciary duty. A fiduciary duty is a legal or ethical relationship of trust between two or more parties. Generally, a fiduciary is responsible for handling money for another party. Examples of relationships where a fiduciary duty exists are:

• Attorney-client
• Corporate officer-stockholder
• Stockbroker-stockholder
• Trustee-beneficiary

When the person owing the fiduciary duty acts in an unreasonable manner that financially injures the person to whom the duty is owed, the injured party may be entitled to recover damages. Common ways for a breach of fiduciary duty to occur are:

 

• Self-dealing
• Misappropriation of funds
• Failure to act in the clients’ best interest
• Giving inappropriate advice
• Misuse of superior knowledge or position
• Neglect