Possible Remedies for Breaches of Fiduciary Duty

A fiduciary is someone or an entity with a legal and ethical duty to act in the best interests of others. An individual or an entity is considered a fiduciary when they are entrusted with the care of money or property on behalf of another individual or entity. Executives and directors owe fiduciary duties to the company and shareholders. Employees in charge of handling finances or managing assets may have fiduciary duties. Partners in a partnership also owe fiduciary duties to each other and the partnership. When a fiduciary violates their obligations, a breach of fiduciary is said to have occurred. Examples of breaches of fiduciary duty include mishandling assets, insider trading, and violation of confidentiality. When a breach of fiduciary duty occurs, the consequences can be severe. Fortunately, legal remedies are available for individuals or entities affected by breaches of fiduciary duty. In this article, we discuss the possible remedies for breaches of fiduciary duty.

What Are the Possible Remedies for Breaches of Fiduciary Duty?

After a fiduciary breaches their duty, there are different ways of dealing with the situation. First, you can consider alternative dispute resolution (ADR) methods such as mediation and arbitration. If a contract or agreement stipulates the form of ADR to use in case of a dispute, you may be required to use that form of ADR to resolve your dispute. Second, you can pursue legal action in court and seek legal remedies.

When a breach of fiduciary duty dispute is handled through litigation, several types of relief may be available to the plaintiff. If a plaintiff is able to prove their case, the following are some of the legal remedies that may be available to them;

• Monetary compensation: One of the most common remedies in breach of fiduciary duty cases is monetary compensation. The court may order the fiduciary to pay compensatory damages to the plaintiff for the losses they experienced due to the breach. The court may require the fiduciary to return the money they received from the plaintiff. In a case where the fiduciary’s actions were malicious or deliberate, the court may order the fiduciary to pay exemplary or punitive damages. Exemplary or punitive damages are intended to punish the wrongdoer and deter similar behavior in the future. By awarding exemplary or punitive damages, courts aim to prevent fiduciaries from engaging in self-serving or unethical behavior.
• Equitable remedies: The court may also grant equitable remedies in a breach of fiduciary duty case. Equitable relief includes injunctions, a full accounting, rescission of a contract that is the basis of the breach of fiduciary duty claim, and profit disgorgement.

Should You Hire an Attorney?

While you are not legally required to hire an attorney for a breach of fiduciary duty case, it is highly advisable that you retain an attorney. The following are some of the main reasons why it is best to hire a lawyer;

• Attorneys have experience in this complex area of law
• An attorney can help you develop a strong strategy
• An attorney can protect your legal rights
• An attorney can represent your interests during negotiations
• An attorney can advocate for you in court

Contact Us for Legal Help

If you need help with a breach of fiduciary duty case, contact the qualified business litigation attorneys at SAC Attorneys LLP.