Minneapolis Business Lawyer

Fiduciary Duty Breaches

A fiduciary duty is a legal relationship between two or more parties. By its definition, fiduciary means an individual, corporation, or association that holds assets for another party, often with the legal authority and duty to make decisions regarding financial matters on behalf of the other party. From its Latin root, fides, meaning faith, the fiduciary relationship is supposed to be marked by good faith, loyalty, and trust. Fiduciary relationships appear in many contexts, including contracts, wills, elections, and in service type arrangements.

A fiduciary is supposed to be loyal to the person whom he or she owes the duty and should not put personal interests first. Additionally, the fiduciary should not profit from the position of power, unless the person he or she works for, also known as the principal, consents to this individual gain. Conflicts of interest are also hazardous to the fiduciary duty. It is said fiduciaries must handle their behavior at a “level higher than that trodden by the crowd” and that the main duty of the fiduciary is “undivided loyalty.”

Possible fiduciary relationships include that between trustee and beneficiary, lawyer and client, stockbroker and client, doctor and patient, teach and student, and priest and parishioner. Based on the extreme level of trust and duty placed in the relationship, breaches and violations of either quality can have devastating effects. If you have experienced a fiduciary duty breach in any context, legal counsel can protect your rights and assets. The experienced Minneapolis Business Lawyers at Skjold Barthel are available at 612.746.2560 to discuss your situation.