Resolving Breach Of Fiduciary Duty Disputes
Business relationships are founded on principles of trust. When joining together in business, officers, directors, partners, managers, executives and individuals in similar roles owe specific duties to the other stakeholders. When these obligations are breached, the damage to others can be significant.
The attorneys at Cunningham Swaim, LLP, provide unwavering representation to solve complex internal business disputes. We are skilled trial lawyers who prosecute and defend against claims of breach of fiduciary duty. Our problem solvers focus on efficient and effective solutions. We have offices in Dallas, Texas, Pasadena, California and Denver, Colorado, to serve you.
Understanding Fiduciary Duties
Business partners are expected to act in the best interests of the entity. When a business professional acts, the action is intended to benefit the corporation or partnership as a whole. Failing to uphold standards may give rise to a claim of breach of fiduciary duty.
Corporate decision makers may often take action that benefits the entity and also results in an associated personal gain. However, many acts or missions of an official may fail to uphold fiduciary standards. Breach of fiduciary duty litigation has many facets, which include:
- The duty of loyalty: Fiduciaries must be loyal and put the business first. Self-dealing or engaging in conflicts of interest may rise to the level of a breach.
- The duty of care: Partners are expected to make business decisions with care. Failing to act in a reasonably prudent manner in managing business issues may lead to disputes.
- The duty of disclosure: Partnerships rely on trust. Fiduciaries are expected to be honest and disclose any reasonably known risks and benefits of taking a particular business action.
- The duty of good faith and fair dealing: In all interactions within the entity, partners should be honest with each other, act in good faith and deal fairly with the other partners.