Los Angeles Lawyers for Breach of Fiduciary Duty

As a business hoping to protect your interests, it is important to work with an attorney who is experienced in handling claims involving fiduciary duty. Fiduciary duties impose on particular businesses or people, known as “fiduciaries,” the duty to act with the utmost good faith in the best interests a principal, corporation, client, or partner. When a person or entity is in a position of trust and doesn’t act in their client’s best interests it may be appropriate to bring a lawsuit for breach of fiduciary duty. If you are concerned about breach of fiduciary duty in a corporate setting, you should call seasoned Los Angeles business litigator Ben Mehdian of Mehdian Law, APC.

What Is a Breach of Fiduciary Duty?

In most cases, a fiduciary relationship arises between parties to a transaction because one person or business placed confidence in the integrity of another. In that case, the party who accepts or is assumed to accept the confidence, is not permitted to take advantage of the other without the latter’s consent and knowledge. The following may be fiduciaries:

• investment advisors,
• agents,
• stockbrokers,
• real estate brokers,
• real estate agents,
• corporate officers,
• business partners,
• and trustees.

Before any of these professionals can be charged with a fiduciary obligation, they must knowingly undertake on behalf of or for the benefit of another, or knowingly go into such a relationship.

Whether a fiduciary duty exists is a question of law. However, whether or not there is a breach of that duty is a question of fact rather than law. Breaches of fiduciary duty occur when a professional fails to do what is ethically or legally required of them under the circumstances. The breach can only be found to occur when a professional is in a position of trust yet doesn’t act in the best interests of the party to whom the duty is owed.

As a layperson, it can be difficult to know what duties were owed under a certain set of circumstances. If you suspect that your business was damaged by a fiduciary’s failure to act in good faith, or if your company has been accused of acting without good faith, you should call experienced attorney Ben Mehdian for a consultation.

Proving Breach of Fiduciary Duty

To prove there was a breach of fiduciary duty, the plaintiff’s attorney will need to show: (1) there was a fiduciary relationship between the parties, (2) the fiduciary failed to live up to that duty, and (3) damages were legally caused by the breach of fiduciary duty.

A fiduciary may be required to act according to the following duties:

• Duty of reasonable care: This duty requires the fiduciary to use due diligence in making decisions taking action or providing advice.
• Duty of undivided loyalty: This duty prohibits a fiduciary from representing another who has a conflicting interest to the client or other business to whom a duty is owed.
• Duty of good faith: This duty requires fiduciaries to obey the law when dealing with matters on a client’s behalf.
• Duty to disclose: This duty requires a fiduciary to provide information to a client or other business to whom a duty is owed when the information would impact the client’s well-being.
• Duty of confidentiality: This duty requires a fiduciary not to disclose information to those outside the fiduciary relationship without client consent.
• Duty of prudence: This duty mandates that the fiduciary take reasonable care in identifying risks and weighing options prior to acting. When there is a fiduciary duty to the plaintiff and the defendant did not act in the best interests of their client, a breach of fiduciary duty exists.

Damages for Breach of Fiduciary Duty

A plaintiff who successfully proves a breach of fiduciary duty may be able to recover monetary and direct compensation for its financial or other losses, as well as legal expenses, court costs, and attorneys’ fees.

Seasoned Breach of Fiduciary Duty Lawyer to Protect Your Interests  

If you are concerned about a breach of fiduciary duty in a corporate setting, you should call the trustworthy Los Angeles business litigation attorney Ben Mehdian of Mehdian Law, APC. He can develop a bold, fearless strategy to protect your interests. Call us at (844) 463-4342 or (310) 889-0706 or contact us to schedule a consultation.