When two or more parties have a business relationship, they must trust each other with responsibilities tied to their mutual benefit. This trust is not just foundational; it is also legally binding under what is known as fiduciary duty.

Breaches of fiduciary duty can lead to operational disruption, as well as substantial financial losses. A business that has been harmed due to this type of breach will need to understand its options for addressing the issue through business litigation or other means. An experienced business law attorney can help business owners or other parties navigate these complex legal waters, ensuring that breaches are addressed properly.

Understanding Fiduciary Duty

Fiduciary duty represents a legal obligation of one party (the fiduciary) to act in the best interest of another (the principal). This duty may apply in many business relationships, including between business partners, between company directors and shareholders, and in relationships involving trusts and estates. The key elements of fiduciary duty include: