What Can I Do If Someone I Trusted in My Business Violates Their Duties?
Business relationships often involve legal duties that require individuals to act in the interests of another person, business, or entity. When a partner, director, officer, or other fiduciary allegedly misuses that position, the consequences may include financial losses, damaged business relationships, and litigation.
Whether a fiduciary duty exists, and whether it has been breached, depends on the relationship, the conduct involved, and applicable law. Lepera & Associates represents clients in business disputes involving alleged breaches of fiduciary duty.
Common Fiduciary Duty Disputes
Misuse of Business Funds or Assets
Claims may arise when someone entrusted with business resources allegedly uses funds, property, or opportunities for unauthorized personal benefit.
Conflicts of Interest and Self-Dealing
Disputes can involve transactions or decisions in which a fiduciary's personal interests allegedly conflict with duties owed to the business or another party.
Failure to Disclose Material Information
Certain fiduciary relationships may require disclosure of information relevant to business decisions. Allegations that important information was improperly withheld can give rise to disputes.
Misconduct by Business Partners, Officers, or Directors
Depending on the business structure and circumstances, fiduciary duty claims may involve partners, corporate officers, directors, or other individuals who owe legally recognized duties.
Bringing or Defending a Fiduciary Duty Claim
Not every disagreement or unfavorable business decision constitutes a breach of fiduciary duty.
Evaluating a claim may require determining whether a duty existed, what that duty required, whether the conduct violated it, and whether legally recoverable harm resulted.
Lepera & Associates represents clients pursuing fiduciary duty claims and those defending against allegations of misconduct.
Potential Legal Remedies
Depending on the circumstances, available remedies may include monetary damages, equitable relief, an accounting, or other relief permitted by law.
The availability of particular remedies depends on the facts, the nature of the fiduciary relationship, and applicable legal requirements.
Frequently Asked Questions
Does every business partner owe fiduciary duties?
Not necessarily in the same way. Duties depend on the business entity, the individual's role, governing agreements, and applicable law.
Is a poor business decision a breach of fiduciary duty?
Not automatically. A business decision that produces an unfavorable result does not, by itself, establish a breach. The legal analysis depends on the duties involved and the circumstances of the decision.
What evidence may be important in a fiduciary duty dispute?
Relevant evidence may include governing agreements, financial records, communications, transaction documents, and records showing the parties' responsibilities and conduct.
Discuss a Fiduciary Duty Dispute
Allegations of fiduciary misconduct can have serious financial and operational consequences for a business.
Contact Lepera & Associates to request a consultation about enforcing fiduciary obligations or defending against a fiduciary duty claim.