Common Types of Fiduciary Liability Claims
When one party takes on the responsibility of acting in another party’s best interest, it creates a fiduciary duty. This duty should be taken seriously, and breaches of fiduciary duty can be met with serious penalties under civil law.
When Does Fiduciary Liability Exist?
Fiduciary liability can exist in many situations and fall under a number of areas of law. A fiduciary owes a legal duty to the principal and cannot act in a way that presents a conflict of interest or places the fiduciary’s needs above those of the principal. Fiduciary liability can exist any time there is a relationship that involves a special trust, confidentiality, or reliance on the fiduciary by the principal. Those who hold a fiduciary duty to others are required to maintain that duty with the highest quality of care. Fiduciary duty can arise in business dealings, estates and trusts, guardianship, attorney/client, and more.
Types of Fiduciary Liability Claims
One of the most common types of fiduciary liability is a conflict of interest. This happens when the fiduciary has other interests, either their own or those of another principal, that may conflict with the principal’s interest in this relationship. Another type of fiduciary liability similar to a conflict of interest is known as self-dealing. This occurs when the fiduciary acts in their own self-interest instead of the best interest of their principal.
Failure to disclose pertinent information can also be cause for a fiduciary breach. This is particularly relevant in business dealings and the management of trusts. Fraud can also give cause for a fiduciary liability claim, as can the neglect of professional responsibilities and the misrepresentation of material facts. If you would like to learn more about what acts or omissions may give rise to a fiduciary liability claim, talk to a Florida civil law attorney today.
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If you would like to speak with an attorney about a potential fiduciary liability claim, call or contact The Soto Law Office today to schedule a consultation.