A fiduciary duty exists when a person or entity puts their trust and confidence in another to exercise discretion or act on behalf of another. Fiduciary duty only exists when every party knowingly accepts the relationship and responsibilities. Unfortunately, a fiduciary duty can be breached. Our New Jersey corporate law attorneys explain what happens when a fiduciary duty is breached.
Breach of Fiduciary Duty
When multiple parties engage in a fiduciary relationship, the parties have an obligation to act solely in the other party's interests. The fiduciary duty requires the person or entity to ensure that no interests arise between the fiduciary and the principal.
A breach of fiduciary duty occurs when a party fails to act responsibly in the best interests of an entity. For example, a business partner would have a fiduciary duty to the partnership and the business. The other business partner has a right to expect that all partners act in the partnership's best interest but not share trade secrets or steal customers away from a competitor.
If you experienced a breach of fiduciary duty, you can file a claim to seek compensation. You can receive monetary compensation for the direct damages, indirect damages, and legal costs that occurred due to the breach of fiduciary duty. A court ruling can also lead to industry discrediting, the loss of a license, and removal from service.
How Can I File a Claim?
If you believe that your company has suffered a loss because of a breach of fiduciary duty, you can file a claim to seek compensation. Our team at M. Ross & Associates, LLC has helped large and small businesses across New Jersey and New York secure the compensation they deserve after their trust has been breached. If you have any questions about your rights or the laws that protect you, our team of corporate attorneys is here to guide you through the process.
Contact us today at (201) 897-4942 to schedule a consultation!