![]() ![]() ![]() This does not mean that every CEO or investment advisor who made bad choices or who gave inaccurate advice faces civil and criminal liability. When Does a Breach of Fiduciary Duties Occur?Ī breach of fiduciary duties occurs when the fiduciary fails in his obligations. Accountants, attorneys, and many other professionals also have a fiduciary duty to their clients. A stock broker or investment advisor also has a fiduciary duty to act in the best interests of clients. A corporate officer or a company executive has a fiduciary duty to act in the best interests of the business and shareholders, rather than to enrich himself at the company’s expense. Within the investment and business world, there are many situations in which a fiduciary duty exists. Above all else, the fiduciary must be loyal and always make decisions with an eye towards benefiting the person or company to whom the duty is owed. The fiduciary must be honest and candid about his dealings. The fiduciary must act with scrupulous good faith. The fiduciary is analogous to a trustee on the basis of the confidence that is placed in the fiduciary to correctly manage financial or business affairs.Ī fiduciary duty is the highest duty of care that is owed. A fiduciary is entrusted with important responsibilities, such as managing funds for someone else or handling the affairs of a business. Call today to schedule a consultation and learn more about how a breach of fiduciary lawyer can help you.Ī fiduciary duty is a duty to act on behalf of another. Bukh Law Firm, PLLC can provide invaluable assistance when a complaint for breach of fiduciary duty is made. When you are facing legal action arising from a breach of fiduciary duty, you need an attorney who is prepared and ready to help you tackle all of your legal problems head-on. You could find yourself fighting multiple legal battles on all fronts if you are accused of breaching your duty- and your freedom, finances, and professional life could all be at stake. In some cases, however, the same actions that constitute a breach of fiduciary duty are also crimes. Civil lawsuits can have significant financial consequences, but will not result in jail time. The term fiduciary is derived from the Latin word fidere, which means “to trust.” A fiduciary obligation exists when one person is trusted to provide advice and take actions for the benefit of another.Ī breach of fiduciary duty can give rise to civil liability. A breach of fiduciary lawyer explains fiduciary duty and consequences of breach ![]()
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