What are the Consequences of Breaching a Fiduciary Duty?
Southern California fiduciary duty attorneys can provide representation to fiduciaries in understanding and fulfilling their obligations. An attorney can also provide representation in situations where an accusation has been made that a fiduciary duty was breached. We can provide representation to the fiduciary or to shareholders or others who are claiming to have been damaged by a breach.
A fiduciary duty is the highest duty that one person can owe to another. Executives, members of the board of directors, and certain others who have been put into a position of trust may be considered fiduciaries and required to live up to this obligation. The consequences for failure to fulfill a fiduciary duty can be severe so it is important to get legal help in circumstances where a breach of duty may have occurred.
Brown & Charbonneau, LLP is here to help. We can assist with resolving conflicts surrounding breach of fiduciary duty whether a resolution is sought in mediation, arbitration, or litigation. Our compassionate and knowledgeable legal team will represent a fiduciary accused of a breach or those who have initiated litigation because they believe they have been harmed by the actions of a fiduciary duty who failed to fulfill his responsibilities. Give us a call today to learn more.
Consequences of a Breach of Fiduciary Duty
When a fiduciary has been accused of breaching a fiduciary duty, those who were harmed by the breach can take legal action against the fiduciary. Often, this involves filing a civil lawsuit. However, it may be possible that the fiduciary and the other parties involved will decide to try to resolve the conflict in mediation or in arbitration. Mediation is voluntary and requires the cooperation of the parties to come to a consensus. When parties submit a dispute to arbitration, the arbitrator makes a binding decision. In some cases, when a contract is in place, it will require a dispute to be resolved in arbitration.
If a fiduciary is accused of breaching a duty, those claiming that a breach occurred will have to prove that the fiduciary failed to fulfill his or her obligations. This can occur if the fiduciary acted to enrich himself or herself at the expense of the company or at the expense of parties to whom he had a duty. For example, if a board member diverted opportunities from the business for his own enrichment, this would be a breach of fiduciary duty. If a fiduciary was negligent in carrying out his or her obligations, this could also result in a claim of a breach of fiduciary duty.
A fiduciary can defend himself against accusations of a breach. One common defense technique is for the fiduciary to claim he is protected by the business judgement rule. Those who make decisions in their business role sometimes cannot be held liable if things happen to go wrong because the business judgement rule protects them as long as certain conditions are met such as the fiduciary exercising due diligence.
If the fiduciary is not able to successfully defend himself and it is determined that a breach has in fact occurred, there are different potential remedies. The fiduciary will typically be removed from his role of trust. If financial loss occurred because of the fiduciary’s breach of duty, it is possible that the fiduciary will be held accountable for those losses and money will be awarded to those who were damaged which the fiduciary would have to pay.
Getting Help from Southern California Fiduciary Duty Attorney
Our expert fiduciary duty attorneys can provide comprehensive legal help in any circumstances where a fiduciary may have failed to fulfill obligations or in any situations where you are a fiduciary who has been accused of not living up to your duty. The stakes can be very high in circumstances where there are questions about whether a fiduciary breached his obligations or not so it is important for those involved in a dispute to get the right legal advice.
Brown & Charbonneau, LLP knows the law on fiduciary duty in California inside and out and we can provide the advice and support necessary to handle any disputes resolved through mediation, arbitration, out-of-court negotiation, or litigation. To find out more about how our attorneys can help you, give us a call at 866-237-8129 or contact us online today.