Breach of Fiduciary Duty
Fiduciary duties are the highest legal standard of care. They require individuals in positions of trust, such as directors, officers, partners, trustees, or majority shareholders, to act in the best interests of those they serve.
A breach occurs when someone misuses their authority for personal gain, fails to disclose conflicts of interest, or takes actions that harm the business or its stakeholders. Common examples include self-dealing, concealing important information, or mismanaging company assets.
Under Florida law, a claim can be filed when a fiduciary duty is violated and harm results. Remedies may include financial compensation, court-ordered actions, or removal from a position. In serious cases, the conduct may also lead to criminal charges. However, breach of fiduciary duty cases can be complex and challenging to navigate.
Navigating the Complexities of Breach of Fiduciary Duty Cases with TCLG
These cases typically involve allegations of betrayal, deception, and financial misconduct by someone who has a legal or ethical obligation to act in the best interests of another party. Fiduciary relationships can exist between various parties, such as trustees and beneficiaries, corporate officers and shareholders, attorneys and clients, and financial advisors and clients.
- It is essential to work with an attorney who has experience in identifying, prosecuting, and defending breach of fiduciary duty claims. TCLG has the experience and competency necessary to handle these types of cases. We have a team of skilled attorneys who are committed to helping clients navigate the legal process and achieve their desired outcomes.
- In representing clients in breach of fiduciary duty cases, TCLG takes a thorough and detail-oriented approach. The firm's attorneys conduct a comprehensive investigation into the matter, gathering all relevant evidence to build a strong case and pursue the appropriate legal remedies, such as compensatory and punitive damages or equitable relief. We are well-equipped to handle these challenging cases and help you reach a favorable outcome.
Related
- Fiduciary Duties Holding parties accountable when trust and responsibility are breached.
- Shareholder / Member Dispute
- Breach of Contract
- Tortious Interference
- Misappropriation of Confidential Information
- Misrepresentation / Fraud and Other Business Torts
- Complex Business and International Litigation/Arbitration
The Campbell Law Group P.A. is located at 2121 Ponce de León Suite 540, Coral Gables, FL 33134.
My business partner is taking money from the company. What can I do in Florida?
Taking company money for personal use can support a breach-of-fiduciary-duty claim, and sometimes related claims such as conversion or civil theft. The first practical steps are to preserve bank records, emails, and access logs, and to get advice before confronting the other owner in a way that destroys evidence. https://www.tclgfirm.com/practice-areas/business-litigation/misappropriation-fraud-and-other-business-torts/conversion This is general information about Florida law, not legal advice, and it does not predict or guarantee any outcome.
What counts as breach of fiduciary duty between business partners in Florida?
A breach is a failure of a duty of loyalty or care by someone in a position of trust, such as a manager, officer, or controlling owner. Self-dealing, diverting a company opportunity, hiding material facts, and misusing company assets are common examples. Not every disagreement between owners is a fiduciary breach. https://www.tclgfirm.com/blog/florida-llcs-outlining-the-fiduciary-duties-of-members-and-managers This is general information about Florida law, not legal advice, and it does not predict or guarantee any outcome.
How long do I have to bring a fiduciary duty claim in Florida?
Breach of fiduciary duty claims generally must be filed within four years under Fla. Stat. 95.11. When the clock starts can depend on when the conduct happened and when it was or should have been discovered, so waiting to “see how it plays out” can bar the claim. https://www.tclgfirm.com/blog/breach-of-fiduciary-duty This is general information about Florida law, not legal advice, and it does not predict or guarantee any outcome.
Can I sue a partner for self-dealing or diverting business opportunities in Florida?
Yes, when the partner owed a fiduciary duty and took a company opportunity or dealt with the company for personal gain without the required disclosure and consent. The remedy, if any, depends on the harm and the governing documents. https://www.tclgfirm.com/practice-areas/business-litigation/breach-of-fiduciary-duty/fiduciary-duties This is general information about Florida law, not legal advice, and it does not predict or guarantee any outcome.
What kind of damages can be awarded for a breach of fiduciary duty?
When a fiduciary acts against the interests of its principal or for its own profit without the express consent of the principal, it may be met with serious litigious consequences. Compensatory damages: This includes recovery of the amount of loss as a direct result of the breach of fiduciary duty, disgorgement of profit, and in some cases, lost profit and attorney fees. Punitive damages: These damages are awarded to punish and deter such behavior again. The amount awarded usually corresponds with the severity of the actions or omissions of the fiduciary. Punitive damages are reserved for cases where the fiduciary has acted with great malice or fraud. Equitable relief: This can take the form of accounting, injunctive relief, forfeiture, the appointment of a receiver, constructive trust, and rescission of the transaction or agreement.
Can a breach of fiduciary duty be classed as a crime?
While most breaches of fiduciary duty are addressed in civil court, there are certain circumstances where the actions of the fiduciary may also violate criminal law. Examples of criminal breaches of fiduciary duty include theft, embezzlement, fraud, identity theft, and abuse of an elderly person. In such cases, the fiduciary may face criminal charges and, if found guilty, may be subject to fines, imprisonment, or other penalties.
How to defend against breach of fiduciary duty claims?
In any breach of fiduciary duty case, the main defense is to demonstrate that the fiduciary's actions fall within the parameters of the foundational documents (such as a will or trust) and are in compliance with applicable Florida laws. For instance, even if beneficiaries contend that a trustee, guardian, or personal representative made "inappropriate investments," a court may consider these investments as reasonable. In addition to proving that their actions were within the bounds of foundational documents and the law, fiduciaries have other defenses available to them that go beyond the factual breach claim. These defenses include: Equitable Defense of Laches: This defense argues that there has been an unreasonable delay in asserting the claim. Statute of Limitations: This defense asserts that the case is time-barred by law. Situational-Specific Defenses: This category of defense includes exculpatory clauses and self-executing accounting release provisions. Self-executing accounting release provisions are often included in trusts, and they essentially excuse any bad acts of the fiduciary or trustee if no beneficiary has objected after a specified accounting period. Exculpatory clauses are another type of defense that can limit the fiduciary's liability for unintentional mistakes or errors in judgment. However, they cannot excuse intentional bad acts committed by the fiduciary.
What is the statute of limitations for breach of fiduciary duty claims in Florida?
The statute of limitations for breach of fiduciary duty claims in Florida is four years from the date of the breach or discovery of the breach, whichever comes first. However, there may be exceptions to this rule depending on the circumstances of the case.
General information about Florida law, not legal advice, and not a guarantee of any result.