Did you realize there are often allegations of a breach of fiduciary duty in a San Diego business dispute? When does a breach of fiduciary duty occur in San Diego and what are the potential consequences?
A Fiduciary Duty is an Advantage or Power, Knowledge or Resources
Generally speaking, a fiduciary duty usually occurs when one party has an advantage of power, knowledge, or resources over another party in the course of a business setting. There is a substantial body of law and supporting court decisions which have developed across several decades which have established, in essence, when a fiduciary duty is established, when it starts and when it ends. The nature of the relationship between the parties is what creates the fiduciary duty.
A fiduciary is required by law to act openly, honestly and fairly and put the beneficiary’s interest above their own. A fiduciary should act in good faith, never self deal.
What are Some Examples of Those With a Fiduciary Duty in a Business Setting
Board members and corporate executives and officers who serve in a position of power or authority over business finances owe a legal “fiduciary duty” to the company they serve. Partners in a business (including members in an LLC, shareholders in a corporation) have a fiduciary responsibility to their partners. It may surprise you to learn that employees have a fiduciary duty to their employers.
Breach of Fiduciary Duty in a San Diego Business Dispute Between Shareholders
The experienced shareholder rights attorneys and litigation team at the Watkins Firm represent shareholders and beneficiaries in lawsuits and disputes involving breach of fiduciary duty. We seek immediate protection of the assets or associated company and appropriate compensation and other legal remedies for what has happened. We also defend corporate executives, board members, trustees and executors who are accused of breaching a fiduciary duty. Almost every shareholder dispute, board of director or executive dispute or derivative lawsuit will contain a breach of fiduciary duty claim. The breach of fiduciary duty may arise out of a conflict of interest or the commingling of assets or funds.
The fiduciary duty also applies to trustees and those administering estates in San Diego. This fiduciary duty requires them to act in good faith and under a duty of loyalty to the company, corporation, estate or trust they serve. People in these positions of responsibility are legally required to place the interests of the company, trust or estate ahead of their own personal interests and to serve with honor and integrity.
Defending Breach of Fiduciary Duty
The business litigation and dispute resolution attorneys at the Watkins Firm have many years of experience defending breach of fiduciary duty allegations. The first step in the defense of breach of fiduciary duty is to work to establish that there was not a fiduciary relationship between the parties. If there was a fiduciary relationship the burden is prove that the duty was not in fact breached. This is accomplished through a thorough analysis of the accounting and communications. We drill down to the details and facts surrounding the allegations. In the end, the victim of a breach of fiduciary duty must prove they suffered damages before a financial obligation may result.
Breach of Fiduciary Duty Attorneys in San Diego and Southern California
Are you searching for breach of fiduciary duty attorneys in San Diego or Southern California? The breach of a fiduciary duty is a serious violation of California law. There are strong defenses against allegations of a breach of fiduciary duty. There are also many strong financial and legal remedies for the violation of a fiduciary duty. The primary recourses are actual financial damages, equitable remedies (repayment of profits or gains achieved by self-dealing) and in the case of a derivative action, remedies can include the recovery of attorneys fees.
If you are concerned about a breach of fiduciary duty in San Diego we invite you to review the strong recommendations of our clients and contact the Watkins Firm or call 858-535-1511 for a complimentary consultation today.
