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Fiduciary Duties: What they Are and Who Owes Them?

What is a fiduciary?

A fiduciary is a person who is legally obligated to act in the best interest of an individual or company. This obligation forms a legal duty.

In Florida, there are many different relationships that may create fiduciary duties, including those between:Infograph explaining fiduciary

  • Trustees and beneficiaries
  • Attorneys and clients
  • Directors and shareholders
  • Officers and corporations
  • Partners and partnerships
  • Spouses
  • Parents and children

When a fiduciary breaches their duty, they may be liable to the person they owe the duty to for damages. The elements of a breach of fiduciary duty claim in Florida are:

  1. The existence of a fiduciary duty
  2. A breach of that duty
  3. Damages flowing from the breach of that duty

The most common types of breaches of fiduciary duty include:

  • Self-dealing
  • Misappropriation of assets
  • Failure to act in the best interests of the beneficiary
  • Failure to keep the beneficiary informed
  • Unreasonable compensation

If you believe that a fiduciary has breached their duty to you, you should contact an experienced Florida attorney to discuss your legal options. The Orlando Litigation Lawyer provides free consultation for matters located in Florida.

Breaches of Fiduciary Duties

  • A trustee who invests trust assets in his own business.breach of fiduciary duty
  • An attorney who fails to disclose a conflict of interest to his client.
  • A director who votes in favor of a transaction that is not in the best interests of the corporation.
  • An officer who uses corporate assets for personal use.
  • A spouse who dissipates marital assets during a divorce.

Here are some tips for avoiding a breach of fiduciary duty:

  • Be aware of the fiduciary duties that you owe to others.
  • Act in the best interests of the person you owe the duty to.
  • Avoid conflicts of interest.
  • Keep the person you owe the duty to informed.
  • Comply with all applicable laws and regulations.

The consequences of a breach of fiduciary duty in Florida can be serious. The fiduciary may be liable to the beneficiary for damages, including the loss of profits, the cost of restoring the assets to their original condition, and the cost of legal fees. In some cases, the fiduciary may also be removed from their position.

If you believe that you have been the victim of a breach of fiduciary duty, it is important to seek legal advice as soon as possible. An experienced Florida attorney can help you understand your legal rights and options and can represent you in a lawsuit, if necessary. Give the Orlando Litigation Lawyer a call for your free consultation today.