Breach of fiduciary duty license#
The loss of a professional license or accreditation.A legal malpractice lawsuit, if the offender is an attorney.Other penalties for a breach of fiduciary duty include: If the court found the director did, in fact, commit a breach of fiduciary duty, the court could order the director to pay compensatory damages. In this case, the shareholder could file for compensatory damages against the director. When a shareholder claims that a company’s director acted in his own best interests, rather than those of his shareholder, the shareholder can sue. A common example of a breach of fiduciary duty happens often in the corporate world. If a person suspects another of a breach of fiduciary duty, he may be able to sue that person for damages. The court then considers the claims collectively when deciding how much damages to award.
For this reason, the plaintiff will normally list breach of fiduciary duty in addition to other claims, like malice or fraud. It is also difficult to calculate exactly the amount of damages that the plaintiff suffered as the result of the plaintiff’s alleged breach. However, it is incredibly difficult to prove a breach. using his position for ill-gotten gains)Ī person who believes he has been the victim of a breach of fiduciary duty may have the right to sue. Misusing one’s position of influence (e.g.spending money meant for child support on a trip to the spa) Failing to disclose important information, or misrepresenting facts.There are several ways in which a person can commit a breach of fiduciary duty, including: That the plaintiff suffered as the direct result of the defendant’s misconductĪ plaintiff who did not suffer damages does not have an actionable claim.That the defendant breached that responsibility in some way.That the plaintiff expected the defendant to uphold a certain responsibility.Such a failure can cause harm to the other person, such as whether a conflict of interest exists regarding legal representation.Įlements to a Breach of Fiduciary Duty Claimįor someone to be successful on a breach of fiduciary duty claim, he must prove the following three elements: A breach can also occur when a person fails to disclose important information. In other words, the person acted in a way that was contrary to the other person’s best interests, rather than in support of them.Ī breach of fiduciary duty can occur in several ways, including an action taken to benefit one’s own self-interest. Establish who will inherit which assets upon his death Breach of Fiduciary DutyĪ breach of fiduciary duty occurs when someone entrusted to take care of another person fails to do so.Protect his assets from taxes and probate upon his death.Set aside funds to take care of a mentally handicapped beneficiary.Set aside funds for his underage beneficiary, until the beneficiary is of age and can handle his own assets.
For instance, a trustor can set up a trust to: A trust is beneficial in numerous situations, both while the trustor is still alive, and after his death.
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