When a business relationship is formed or an individual is entrusted responsibilities in a company, there are certain duties that must be upheld. Failing to uphold these duties does not only harm the relationship but it also likely causes harms to those owed these duties.
Take for example a fiduciary duty. This implies that a person has an obligation to act in the best interests of another. In the case of a corporate board member, they have this duty to the shareholders of the company. If it is found that a party acted contrary to his or her fiduciary duty to another party, this could be considered a breach of fiduciary duty.
There are several relationships that could give rise to a fiduciary duty. This includes attorney and client, principal and agent and trustee and beneficiary. Whenever a relationship creates a legal duty and that duty is breached, one could take action against the breaching party.
There are three elements in a breach of fiduciary duty. To start, a duty must exist. This means that there was a duty of fiduciary duty towards the party claiming a breach. Second, there must have been a breach in some way, such as failing to disclose information, misappropriating funds or misrepresentation. Finally, there must be damages suffered because of the breach. When a breach of fiduciary is proven, it is possible to seek remedies, such as recovering actual damages.
If you believe you have experienced a breach of fiduciary duty, it is important to better understand the situation. You might be able to hold the breaching party accountable, collecting damages for any losses suffered because of the breach.