Fiduciary Duty Attorney

A fiduciary duty is the duty of an agent to treat his principal with the utmost candor, rectitude, care, loyalty, and good faith. Traditional examples of fiduciary relationships include trustee-beneficiary, real estate broker-client, attorney-client, and other principal-agent relationships.

By Douglas Wade, Attorney

Email | Call (800) 484-4610

Get Smarter. Search FAQs.

Table of Contents

1. How can a breach of fiduciary duty lawyer help?

2. What Constitutes a Breach of Fiduciary Duty in California?

3. What is the Meaning of a Fiduciary Relationship?

4. What Are Violations of Fiduciary Duties?

5. What Are The Elements Of A Breach Of Fiduciary Duty?

How can a breach of fiduciary duty lawyer help?

Our experienced California fiduciary duty attorney often field questions from clients about fiduciary duty and how it works. Our clients are sometimes concerned that their fiduciary relationship was violated or want to ensure they do not breach the duties of signed agreements.

Whatever your concerns, our skilled fiduciary attorney has the answers for you. Fiduciary duty is an area of law that is often misunderstood, so allow our attorneys to explain how it works and answer your questions.

At Nakase Wade, our fiduciary attorneys have handled many fiduciary duty cases, and we understand how important it is to have loyal, trusting relationships with clients. Contact Nakase Wade today for a free consultation.

When a breach of fiduciary duty occurs, involving a lawyer is crucial to navigate the legal complexities and ensure that the rights and interests of the parties involved are protected. The following are ways how a lawyer can help in such situations:

Legal Analysis: A lawyer with expertise in corporate law and fiduciary duty can analyze the specific circumstances to determine whether a breach has occurred. They will assess the actions of the party accused of breaching their fiduciary duty and evaluate whether those actions indeed violated their legal obligations.

Evidence Gathering: Lawyers can help gather and assess evidence related to the alleged breach. This could involve reviewing documents, emails, financial records, and other relevant materials to build a strong case.

Legal Strategy: Based on the evidence and the circumstances, a lawyer can develop a legal strategy tailored to the situation. They will advise their client on the best course of action, which might involve negotiation, mediation, or pursuing legal action through litigation.

Negotiations and Mediation: In some cases, a lawyer can assist in negotiating with the party responsible for the breach. They can also facilitate mediation between the parties involved, aiming to reach a settlement outside of court. This can help save time, money, and avoid the adversarial nature of litigation.

Litigation Representation: If a resolution cannot be reached through negotiation or mediation, a lawyer can represent their client in court. They will file the necessary legal documents, present arguments, and advocate on behalf of their client to seek compensation for damages resulting from the breach.

Defenses and Counterarguments: If you’re the accused party, a lawyer can help develop defenses and counterarguments to challenge the allegations of breach of fiduciary duty. They can work to prove that your actions were in accordance with the law and your obligations.

Expertise in Fiduciary Law: Lawyers specializing in fiduciary law possess a deep understanding of the legal principles and standards associated with fiduciary relationships. Their expertise helps ensure that your rights are protected and that you’re advised on the best legal course of action.

Documentation and Paperwork: Lawyers can assist in drafting legal documents, agreements, and other paperwork necessary for the case. This ensures that all legal requirements are met and that your rights are properly represented.

Navigating Legal Proceedings: If the case goes to court, a lawyer will guide you through the legal proceedings, representing your interests, presenting evidence, cross-examining witnesses, and making legal arguments to support your case.

Settlement Negotiations: If the other party wishes to settle, a lawyer can negotiate the terms to ensure you receive fair compensation and that your rights are protected.

Overall, involving breach of fiduciary lawyer is essential to ensure that your legal rights are upheld, to navigate the complexities of corporate law, and to achieve the best possible outcome for your situation.

What Constitutes a Breach of Fiduciary Duty in California?

In California, the courts regard specific relationships as “fiduciary.” By nature, these relationships are held to high standards of loyalty, confidentiality, and trust. For example, an attorney owes a client a fiduciary duty.

Violations of this fiduciary duty can happen in a variety of ways, but they most notably occur when:

A fiduciary engages in self-dealing
A fiduciary takes any action in which their motives are held above the other party

Professionals and their attorneys must take breaches of fiduciary duty very seriously since self-dealing can damage relationships and businesses.

What is the Meaning of a Fiduciary Relationship?

All relationships are built on the dynamic between two or more parties. Fiduciary relationships are predicated on a specific dynamic. In a fiduciary relationship:

One party is bound to act with sensible care for the other party’s benefit and in good faith in the interests of the other party.

For example, business partners typically are bound by their loyalty to the business. If one partner seizes a personal opportunity at the expense of the other partner, or the business, they would be self-dealing.

Anytime one party takes action competitively with the other party, they breach their fiduciary duty. Fiduciary bonds are based on trust. The ideal fiduciary protects the other party, keeps their information confidential, and discloses all relevant information.

Traditional fiduciary relationships take many forms, including:

Attorney and client
Client and broker
Beneficiary and trustee
Business partners
Alternate relationships between agents and principals

In the business world, fiduciary relationships often include business directors, officers, and shareholders, as well as joint venturers and managers of Limited Liability Companies (LLCs).

What Are Violations of Fiduciary Duties?

Just like any relationship, fiduciary relationships are subject to violations. How do fiduciaries violate their duties? Here are three of the main ways:

Concealing material from the other party
Taking actions adverse to the party
Self-dealing

However, before one party can take legal action, they must first establish that:

The fiduciary duty existed in the first place
The fiduciary violated their duty
The violation caused damage

When a plaintiff succeeds, they can collect the damages owed based on the violation. In some cases, and when appropriate, punitive damages are also awarded.

What Are The Elements Of A Breach Of Fiduciary Duty?

Fiduciary obligations are a significant part of a majority of professional relationships. These important relationships depend on one person performing a service for the other.

The fiduciary obligation specifies that the person providing the service act in the other party’s best interest. These actions may include recommendations, providing advice, or more specific actions. When a fiduciary relationship is successful, it works as a well-oiled machine, with the fiduciary helping the client to succeed in their pursuits.

However, sometimes the fiduciary breaches the agreement, and their actions damage the relationship and hurt the client. When the fiduciary engages in behavior that aids them but hurts their client, it is clear they have breached their duty and broken the client’s trust.

Violations of fiduciary duty are relatively common, and it is up to the plaintiff to prove that the fiduciary violated their trust. Three essential elements are needed to show that a violation of fiduciary duty occurred between the client and the fiduciary.

The Victim Suffered Damages

A plaintiff must demonstrate that the violation caused them to suffer damages. Therefore, the plaintiff and their legal counsel must show proof of damages.

Suppose there is no evidence of damages suffered. In that case, the plaintiff’s claim is not actionable, and the courts will not recognize it.

However, suppose the client was harmed or hurt by the fiduciary’s mistakes, self-dealing, negligence, or malpractice. In that case, there is clear evidence of this damage. Then, the plaintiff can prove the breach occurred.

A Clear Duty Existed

When the fiduciary relationship occurs between an attorney and a client, the plaintiff must demonstrate that the attorney owed the client a specific “duty.”

This “duty” is expressed through fair dealing, trust, disclosure of information, loyalty, and good faith. How is this duty represented to the court, however?

The easiest way to show that this duty exists is through producing a signed contract binding the two parties, in this case, the attorney and the plaintiff. However, a clear duty can sometimes be shown without a signed contract.

One’s Fiduciary Duty was Violated

Ultimately, for one party to breach their fiduciary duty, they must have failed to fulfill their responsibilities. For example, if an attorney fails to disclose relevant information about the case to the plaintiff, they have violated their fiduciary duties. This failure must be evident, and the plaintiff must be able and willing to prove it.

For example, suppose an attorney influenced their client to benefit themselves or their career. In that case, this could be noted as a breach.

Learn more about: Business | Corporate | Employment

How To Write An LLC Article of Organization

How To Name An LLC

A comprehensive guide on how to name an LLC.

How To Create An LLC

Strategic Role of America’s National Debt: Benefits and Misconceptions

This article explores the complex role of America's national debt, highlighting its strategic benefits to the economy and addressing common misconceptions about its impact. It emphasizes the necessity and functionality of debt in managing economic stability and growth, while dispelling fears related to government financial management.

5 Businesses That Have the Highest Success Rate for Profits

Top 5 business most likely to succeed and profits backed up by data.

Types of Businesses That Often Fails

Many entrepreneurs, about two-thirds, never start their businesses due to fear of failure. This article will highlight businesses with both high and low failure rates, guiding you toward a more promising venture.

What is NAICS code for small business

NAICS codes determine if your company qualifies as a small business for federal contracts, based on specific size standards. The SBA uses these codes for statistical analysis and opportunity identification, essential for GSA contractors.

Do you need a business license to sell on Shopify

Selling on Shopify often doesn't require a business license, but there are exceptions based on earnings, regulated inventory, and specific product types. Understanding tax obligations, including sales tax and nexus, is crucial for Shopify sellers, regardless of business structure.

Do you need a license to start a business

Obtain the necessary licenses for your business in California, ensuring compliance with state, local, and possibly federal regulations. Simplify the process with guidance on where and how to apply, tailoring to your business needs and location.

How to get a seller’s permit in California

Gain the ability to sell in California with a crucial seller's permit, applicable to many businesses. Secure your permit easily through the CDTFA, with no cost for application, enhancing your operational compliance.

Transfer LLC to another state

Navigate the complexities of moving your LLC to another state with insights on dissolution, domestication, and foreign registration. Ensure a smooth transition by understanding the tax, legal, and procedural implications.

Articles of organization vs Operating agreement

Navigate the essentials of starting an LLC with our breakdown of Articles of Organization versus operating agreements. Understand the necessity, benefits, and filing process for both to ensure your business's legal foundation.

Anonymous LLC States

Unlock the benefits of privacy and asset protection with an anonymous LLC in states like Wyoming, Delaware, Nevada, and New Mexico. Ensure your business advantages while maintaining owner anonymity and confidentiality.

LLC Tax Deductions

Maximize your LLC's tax benefits with our guide on essential tax deductions. From home office expenses to vehicle costs, ensure you're not missing out on valuable savings.

SS4 instructions: Simple step by step

Get your EIN by completing IRS Form SS-4 with our simple guide, highlighting the importance and steps for business tax purposes. Avoid common pitfalls and ensure accuracy in your application process for smoother IRS filings.

What should I name my LLC

Learn how to choose the perfect LLC name that meets legal requirements and resonates with your brand in our step-by-step guide. Discover tips for brainstorming, checking availability, and securing your LLC name.

How to start a freelance business

Learn how to overcome initial doubts and launch a successful freelance business with steps from goal setting to client acquisition. Discover strategies for selecting profitable niches, branding, and pricing to kickstart your freelance career.

Start a Business with $5000

Discover how to start your own business with just $5,000, turning your tax refund or small savings into a long-term investment. Explore viable startup ideas from online tutoring to real estate entrepreneurship within a budget.

Sue for breach of contract

Understand the legal standing of both written and oral contracts, including the ability to sue for breach. Learn the significance of documentation and the challenges of proving verbal agreements in court.

Owning a store checklist for business owner

Discover the essential checklist for aspiring retail store owners, focusing on meticulous planning and relationship building over mere sales. Learn the crucial aspects of POS systems, hiring, marketing, and financial metrics for a successful start.

Types of Businessman

Explore the diverse world of entrepreneurship and the vital skills needed to thrive as a businessman in 2024, including understanding different entrepreneur types. Learn how to navigate the entrepreneurial journey, from digital ventures to lifestyle businesses, and transform from a wantrepreneur to a successful entrepreneur.