December 21, 2020

What Is Fiduciary Duty?

Almost everyone will require the knowledge of an individual providing a business-related service at some point in their personal or professional lives. People ultimately entrust these professionals to help them complete any number of financial and other business-related transactions.

Unfortunately, however, some of these professionals act dishonestly and unscrupulously, which could have significant negative consequences on the clients they were sworn to serve.

Fortunately, such subjects might be held accountable for such actions. The Brockmeier Law Group, a business litigation attorney in Irvine invites those involved in fiduciary relationships or those considering entering into such arrangements read the following blog discussing what this professional association is all about and potential misdeeds that can occur.

Fiduciary Definition

A fiduciary is a professional bestowed the responsibility of executing action most befitting of a client’s interests.

Common established fiduciary relationships include attorney to client, trustee to beneficiary, financial advisor to advisee, controlling company stockholder to minor investors, and guardian to person or entity under their care.

Types Of Breaches

A business litigation lawyer in Irvine reminds readers that breaches can occur in certain notable instances.

First, obvious breaches take place when fiduciaries engage in malfeasant or criminal actions like the misappropriation of funds.

However, other violations happen under circumstances where the fiduciary does not act in accordance with a client’s wishes or beliefs. One case in point is when a fiduciary takes actions or renders important decisions without the client’s input or approval.

Proving A Fiduciary Violation

A claimant and their legal representation must prove several issues to garner a successful outcome in civil litigation including:

Duty

The accused party must have held an established fiduciary position. Additionally, the plaintiff and defendant must have firmly established a fiduciary relationship.

Malfeasance Or Irresponsibility

Claimants must also clearly demonstrate that some malfeasant or negligent breach occurred.

Damages

The claimant is required to illustrate that they sustained some type of discernible damage as a result of the defendant’s behavior.

Contacting Us

Southern California residents who believe they might have been victimized by an abusive or negligent fiduciary are encouraged to seek the counsel of an Irvine business litigation attorney.

The team at the Brockmeier Law Group possesses significant experience handling fiduciary breach cases and has yielded many successful client outcomes. More about our firm can be found by visiting brockmeierlaw.com.