Birmingham Breach of Fiduciary Duty Attorney
Breach of duty can happen in many parts of life. A consumer may take out a loan and fail to pay it back. A general contractor may not follow through on a contract to build a house.
These breaches can also happen in business contexts. They may involve a fiduciary, which is a person placed in a relationship of trust. These breaches of duty can lead to serious legal issues and lost revenues. Seek legal help from a Birmingham breach of fiduciary duty litigation attorney.
What is a Fiduciary Relationship?
A fiduciary relationship may involve one of these situations:
- When there is a specific relationship that involves fiduciary duties (such as lawyer and a client or a stockbroker and a customer)
- When one person places trust in another person, who gains influence over the first person as a result
- When one person assumes responsibility over another
- When one person has a duty to give advice to another on matters within the scope of the relationship
Elements of Breach of Fiduciary Duty
Breach of fiduciary duty occurs when someone is obligated to act in the interests of another person but fails to do so. There are four elements that must be proven in order to file lawsuit for monetary damages:
- Duty. There must be a special relationship of trust between two parties, such as a trustee and beneficiary, an employee and employer, or an attorney and client.
- Breach. It must be proven that one party did something contrary to the other party’s interests, therefore violating their duty.
- Causation. It must be proven that the breach of duty caused you to suffer damages.
- Damages. There must be losses involved in order to recover damages.
Examples of Breach of Fiduciary Duty
Breach of fiduciary duty can happen in the following relationships:
- Agents and principals. These breaches often occur in an employment relationship. An employee may breach their duty to an employer if they refuse to follow directions, share trade secrets, act in the interest of a competitor, or profit at the employer’s expense.
- Partners. Partners have a duty to act in the best interests of their company. Common breaches of duty include illegal behavior, negligence, mismanaging company assets, and counseling important information from others.
- Board of directors. A board of directors has a duty to make decisions on behalf of the company. They breach this duty when they prevent shareholders from voting, refuse to pay dividends, deny shareholders access to records, and force out minority shareholders.
Contact a Birmingham Breach of Fiduciary Duty Litigation Lawyer Today
Trust is important in business relationships. When someone breaches a contract or refuses to act in a moral or legal manner, it can result in fraud, lost revenue, and more.
If your business has suffered from a breach of fiduciary duty, the Birmingham lawyers at Goldasich, Vick & Fulk can help you file a lawsuit to protect your interests. Schedule a free consultation by calling (205) 731-2566.