Breach of Fiduciary Duty Attorney Florida | Business Partner & Officer Claims

What Is Breach of Fiduciary Duty?

A fiduciary duty is a legal obligation of trust and loyalty that one party owes to another. When that duty is violated, the injured party has a legal claim for breach of fiduciary duty — one of the most powerful theories in business litigation.

In the business context, fiduciary duties arise between: Partners in a general or limited partnership. Members and managers in an LLC. Officers and directors of a corporation. Majority shareholders and minority shareholders in a closely held corporation. Agents and principals. Financial advisors and their clients.

What Are the Core Fiduciary Duties?

Duty of Loyalty — A fiduciary must act in the best interests of the person or entity to whom the duty is owed — not in their own self-interest. A partner who diverts a business opportunity to a competing venture they secretly own has violated the duty of loyalty.

Duty of Care — A fiduciary must act with the level of care that a reasonably prudent person in a similar position would exercise. Reckless financial decisions that destroy company value may constitute a breach of the duty of care.

Duty of Good Faith — A fiduciary must act honestly and in good faith in all dealings on behalf of the beneficiary. Actions taken for improper purposes — such as retaliation or self-enrichment — can constitute a breach of the duty of good faith.

What Constitutes Breach of Fiduciary Duty in Florida Business Disputes?

Common breach of fiduciary duty claims in Florida business litigation include: Self-dealing transactions that benefit the fiduciary at the expense of the business or co-owners. Diversion of corporate or business opportunities to competing ventures. Misappropriation of business assets or funds. Withholding material information from business partners or co-owners. Making grossly reckless business decisions without proper authorization. Favoring personal interests over the interests of the business or its owners.

Remedies for Breach of Fiduciary Duty in Florida

Compensatory damages for financial losses caused by the breach. Disgorgement of profits wrongfully obtained through the breach. Punitive damages where the breach involved fraud or intentional misconduct. Injunctive relief preventing continued wrongful conduct. Accounting of all business assets and revenues handled by the fiduciary.

Schedule a Consultation

Contact The Law Offices of Richard Corey, PLLC at 954-789-0461 to discuss a potential breach of fiduciary duty claim in Florida.