Business Contracts Lawyer Sacramento, CA
Fiduciary duty is defined as a legal relationship between two or more parties. The party with the ‘duty’ is called the fiduciary and the other party is the business or person that benefits from the duty. This relationship is mutual among the partners who owe a duty to their business and each other. Fiduciary duty requires each partner to be honest, fair and loyal to the business.
Each partner is required to act responsibly when directing operations for the business. Partners must be transparent with any relevant information to the participants within the scope of fiduciary duty.
The duty begins when the partnership is formed and remains until the dissolution and settlement of all partner affairs. A partner can choose to leave a partnership unless a new contract is negotiated to continue the fiduciary duty.
When there is a disruption of trust among the partners in a fiduciary trust, that is considered a breach of fiduciary duty. This happens when one of the partners does not uphold its financial responsibilities to the partnership, typically resulting in a financial loss.
Examples of breach of contract caused by breach of fiduciary duty:
- Keeping important and relevant information or documents from the partnership, resulting in financial detriment
- Management is negligent
- One of the partners is involved in insider trading
- Part of the profits are kept by a partner to which they are not entitled to receive
- A business opportunity is taken away from the company from a partner for their personal benefit
If you believe this has occurred and you have suffered financial damage because of a breach in fiduciary duty, you may have the right to pursue damages. The following conditions must be met and proven to file a claim:
- A fiduciary relationship was in place
- There was a breach in a specific duty owed to you
- Because of this breach, you are entitled a remedy
The breach that was violated generally determines the remedy you may receive. You may receive monetary damages if one of the partners was dishonest about the amount of profits and neglected to place the earnings in a trust for you. The partner that breached a fiduciary duty to the other partners may able to be removed from the partnership.
The burden of proof is on the partner filing the claim. If you happen to be the accused, your defense is to act carefully to prove your actions fell within the boundaries of your position.
The partner guilty of breach is responsible for losses incurred because of fiduciary beach.
A business contracts lawyer Sacramento, CA relies on at the Yee Law Group possess the necessary knowledge involving breaches of contract. They are skilled negotiators and have the litigation skills required to protect their clients’ interests in a courtroom setting.