Fiduciary disputes arise when individuals who are supposed to be acting in your client’s best interest fail to fulfill their duties. These disputes can surface in a variety of situations, and it’s important to understand the intricacies involved with each. If you’re in Georgia and suspect a breach of fiduciary duty, Gaslowitz Frankel can help. Here’s a closer look at what it entails and how to identify whether or not your client has a viable case:
Related Article: What Counts as a Legal Fiduciary Relationship?
What’s Considered A Breach of Fiduciary Duties?
A breach of fiduciary duty occurs when the fiduciary fails to meet the standard of care, loyalty, or honesty required by their position. This typically involves actions that benefit the fiduciary at the expense of the person they are supposed to serve. A few common examples can include mismanaging assets, engaging in self-dealing, failing to maintain open communication, or having undisclosed conflicts of interest.
How To Spot A Breach Of Fiduciary Duty
Understanding the key signs of a breach of fiduciary duty is the first step. Here are the fundamental fiduciary duties under the eyes of the law and what it looks like when they are violated:
Related Article: A Crash Course on Fiduciary Duties
Duty of Care
The duty of care requires fiduciaries to exercise the same level of caution that a reasonable person would when put in the same situation. A breach might include making risky, uninformed financial decisions that compromise the principal’s assets or ignoring critical information needed to safeguard their interests.
Duty of Loyalty
A fiduciary should always prioritize the principal’s welfare over their own interests. If the fiduciary engages in self-dealing – such as steering investments toward companies they own or fails to disclose conflicts of interest; they’re breaching their duty of loyalty.
Duty of Good Faith
Acting in good faith means staying within the bounds of the law and not exploiting loopholes to benefit oneself. A fiduciary who knowingly engages in misconduct, shady practices, or illegal activities is violating their duty of good faith.
Duty of Confidentiality
Fiduciaries often have access to sensitive information. Sharing confidential details, using private data for personal gain, or failing to protect privacy breaches this duty.
Duty of Prudence
The duty of prudence requires fiduciaries to make decisions that are aligned with the principal’s best interests. Ignoring logical investment guidelines, making reckless financial moves, or neglecting the principal’s stated goals can all signal a breach.
Common Disputes Over Breach Of Fiduciary Duty
Breach of fiduciary duty disputes can happen within a number of relationships, and it’s good to know where these issues tend to surface the most. Here are some of the most common disputes our team has encountered when helping clients:
Trust Disputes
Trustees must manage and distribute trust assets in the best interest of beneficiaries. If there’s evidence of fraud, undue influence, or self-serving actions, a trust dispute can lead to fiduciary litigation.
Will and Estate Disputes
After a loved one’s death, the distribution of assets should follow the testator’s wishes. In the case that this does not happen, disputes can quickly come about over the will’s execution or fairness. If an executor fails to uphold their responsibilities by doing things like mismanaging assets or withholding information, your team may have a case for a breach of fiduciary duty claim.
Business Disputes
Business partners rely on mutual trust, which constitutes a fiduciary relationship. So, if one partner diverts funds, makes secret deals, or ignores the partnership agreement, this breach can easily be grounds for a breach of fiduciary case.
Guardianship and Conservatorship
Guardians and conservators are responsible for caring for those who cannot legally care for themselves. If they knowingly take advantage of this position, ignore their ward’s needs, or misuse the assets, your team may also have a case.
What to Do If Your Client Suspects A Breach Of Fiduciary Duty
If you believe someone with a fiduciary obligation to your client has breached their duty, seeking legal counsel with Gaslowitz Frankel is a great first step. We can evaluate your situation, advise you on potential legal strategies, and help gather evidence to support your claim.
Take On Your Breach Of Fiduciary Duty Case With Gaslowitz Frankel
Here at Gaslowitz Frankel, our goal is always to advocate for the best outcome for our clients. The key to a successful outcome, regardless of the path you choose to take, is connecting with an attorney from the very beginning.
If you are seeking to fight a breach of fiduciary duty, we’re here to help. Contact us by filling out our contact form for a free consultation about your case.
