Breach of Fiduciary Duty

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Business is fast-paced, and as you expand, you may add more executives and stakeholders to the team. Owners put trust in their employees, and when there’s a breach of trust, it is often a costly matter that can cause long-lasting damage. As your breach of fiduciary duty attorney, we’ll fight to:

• Determine whether a breach of fiduciary duty occurred
• Explain the possible remedies to you
• Hold liable parties liable

Get in touch with us and we’ll start planning your effective strategy

Elements of Litigating a Breach Of Fiduciary Duty

Nevada businesses must prove that a fiduciary duty existed during litigation. If no duty existed, seeking damages is impossible. Three main elements must be proven:

1. You must show that a fiduciary duty existed.
2. The duty that existed in point one must have been breached, meaning the individual did not uphold their duty.
3. Breaches must be shown to have caused damages of some kind.

Causation must also be shown, so the person’s breach of duty was a major contributing factor to the “injuries” caused. For example, if an employee acted on behalf of a competitor and caused significant financial loss, it must be shown that the employee’s actions were a major contributor to the loss.

If the loss wouldn’t have happened without the breach of fiduciary duty, causation may be easy to prove.

Remedies For Breach of Fiduciary Duty

At Hone Law, a breach of fiduciary duty attorney will seek the maximum remedy in your case to help your business be made whole. Courts may award damages that include:

• Monetary damages
• Equitable remedies

Compensatory damages may be paid to the plaintiff, and if money was stolen as part of the breach of duty, the court may request that the money be returned. Punitive damages may also be sought in cases where the defendant’s actions were malicious.

You can also seek damages for any loss of business that occurred.

For example, if your employee started to take clients to a competitor, you can seek damages for this breach of duty.

Common Types of Fiduciary Breaches

Breaches in fiduciary duty can occur across a wide range of employees, partners and other stakeholders, all of which can breach duties. Common breaches include:

• Employees: An employee or agent can breach their duties by acting on behalf of competitors, failing to exercise a duty of care when carrying out duties, sharing your IP and trade secrets and more. Agents are those that you hire on a contractual basis.
• Partners: If you have partners, they may mismanage funds, damage the company with illegal behavior, conceal information from you, maintain conflicts of interest that they fail to disclose to you and engage in self-dealing.
• Board of Directors: Companies with a board of directors may find that directors are denying access to records or preventing stakeholders from their voting rights. In some cases, a board of directors can try and push out shareholders or refuse dividend payments, all with bad faith.

Fiduciary breaches can have a significant impact on your business, and in some cases, the damage is extensive enough that the company closes. If news of the breach reaches investors, customers or clients, the damage to your reputation may be irreversible.

Several impacts to the business can occur that go well beyond monetary losses.

The Impact of Fiduciary Disputes

A fiduciary duty dispute can result in several outcomes, including court-ordered remedies, damage awards or even the removal of a fiduciary.

Monetary damages are a common remedy in these types of cases, where the plaintiffs are compensated for the harm caused by the breach.

That said, damage awards are not the only impact of a fiduciary breach.

• Businesses may suffer significant financial losses
• Leadership changes may be necessary
• Professional relationships may be permanently strained

It’s in the best interest of all parties to resolve the issue as efficiently as possible while ensuring that affected parties are made whole. To achieve the best possible outcome, it’s important to work with an experienced and skilled breach of fiduciary duty attorney who will tailor their strategies to your specific needs and situation.

How Hone Law Can Assist with Breach of Fiduciary Claims

Breach of fiduciary claims are serious and can have a lasting effect on organizations and business relationships.

To navigate the choppy waters of your claim, you need a forward-thinking, innovative business law firm on your side. At Hone Law, we focus on complex legal problems and develop targeted strategies to resolve disputes efficiently and effectively.

Contact us today to arrange a consultation with a breach of fiduciary duty attorney at Hone Law.