Breach of Fiduciary Duites

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A fiduciary duty is an obligation to act in the best interest of another party. For instance, a corporation's board member has a fiduciary duty to the shareholders, a trustee has a fiduciary duty to each of the trust's beneficiaries, a retirement plan fiduciary has a duty to the plan and plan participants. Fiduciary litigation is becoming increasingly common because of claims of breach of fiduciary duty. Most often this occurs because of mismanagement or theft from an estate by the person that oversees the estate. Fiduciary litigation usually occurs after the death of a loved one, when beneficiaries become aware of the extent of losses caused by a fiduciary.

Examples of when a fiduciary duty exists include a board of directors’ duty to shareholders; a majority shareholder’s duty to minority shareholders; an asset manager’s duty to investors; or a business or real estate broker’s fiduciary duty to clients. Even indirect relationships between unsecured creditors and the underwriter may result in damages for breach of fiduciary duty, but it must be proven that there was misconduct, and that damages were sustained as a direct result of that misconduct. If you are positive that the executor, estate administrator or a trustee is responsible for improper losses to the estate or trust, they may be surcharged for any losses compelled to repay the estate. An element of the administration of an estate includes a full accounting of the management of the estate or trust for the beneficiaries. These accounting actions may be informal or possibly a formal proceeding, depending on the situation.

Our breach of fiduciary duties attorneys at Evangelista Worley can help determine whether you are owed, or you yourself may owe fiduciary duties and provide we can professionally advise you on how the existence or lack of such duties could impact the litigation process, as well as investigating general business conduct of the company.

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