If you believe that a person or organization has failed to fulfill their fiduciary duty, you may have a claim. Fiduciaries are held to high legal duty and a failure to fulfill that can result in lawsuits, penalties, and reputational damage. If you have been a victim, you should seek legal counsel.
What is Fiduciary Liability?
Fiduciary liability claims occur when a person, or organization with a fiduciary duty (e.g., handling a pension, an employee benefit plan, serving as an agent under a power of attorney or as a trustee ) fails to fulfill their legal obligations and act in the beneficiary’s best interest.
Understanding Fiduciary Duty
Organizations can hold positions of trust, and be held legally accountable for their actions. They must meet strict standards of conduct. Failing to meet these standards can result in liability.
Fiduciary duty is a legal responsibility to act in someone else’s interests, without considering your own. Many professionals accept fiduciary duties when they work for a client. Lawyers, executors, guardians, conservators and trustees, are just a few examples.
Fiduciary duties may differ depending on the type of beneficiary that a fiduciary serves. However, ethical and legal obligations related to the interests of beneficiaries typically include the following duties, among others.
- Care
- Loyalty
- Good Faith
- Confidentiality
- Prudence
- Disclose
Breaches in Fiduciary Duty
A breach in fiduciary duty often involves negligence, lack of due diligence, or mismanagement. To file a claim of breach of fiduciary duty there are several hurdles that must be met. This varies by jurisdiction but in general, there are four main elements that must exist. These include:
- A duty existed.
- A breach in that duty occurred.
- Damage was sustained by the beneficiary.
- Causation of damages was proved.
The Bottom Line
Fiduciary duties ensure that the fiduciary acts only in the best interest of a beneficiary. If you believe that actions by a fiduciary caused you damages you should speak to an attorney.
If you are in need of an attorney’s advice, please contact Cook, Craig, and Francuzenko today. Our firm has attorneys who specialize in a variety of practice areas. With over 100 years of combined experience, we are seasoned professionals ready to help you.
