Breach of Fiduciary Duty
If you’ve trusted someone to handle your finances, investments, or business affairs, only to discover they’ve put their own interests first, you may be dealing with a breach of fiduciary duty. This can lead to significant financial losses and emotional stress.
You deserve experienced legal support to hold the responsible party accountable and recover what you’ve lost.
At Varnavides Law, PC, we specialize in helping individuals and businesses navigate these complex cases. With our focus on securities litigation, investment fraud, and business disputes, we’re here to provide clear guidance and strong representation.
Whether it’s an advisor who misled you or a partner who betrayed your trust, our team is committed to fighting for your rights. Contact us today for a free consultation to discuss your situation.
What Is a Fiduciary Duty?
A fiduciary duty is a legal obligation where one party must act in the best interests of another. It’s based on trust and confidence, requiring the fiduciary to prioritize the beneficiary’s needs above their own. This duty often arises in professional relationships where one person or entity holds power over another’s assets or decisions.
Common examples include:
- Financial advisors managing client investments.
- Corporate officers and directors overseeing company operations for shareholders.
- Trustees handling estate assets for beneficiaries.
- Partners in a business venture.
In these roles, the fiduciary must show loyalty, honesty, and care. They can’t use their position for personal gain or hide important information. For instance, in investment scenarios, a broker must recommend suitable options based on your goals, not their commissions. Understanding this duty is key if you suspect a breach, as it forms the foundation of any legal claim.
At Varnavides Law, we help victims identify these relationships in areas like securities and business disputes.
What Constitutes a Breach of Fiduciary Duty?
A breach happens when the fiduciary fails to uphold their responsibilities, causing harm to the beneficiary. This isn’t just a simple mistake—it’s a violation of trust that often involves self-interest or negligence.
Key duties that can be breached include:
- Duty of Loyalty: Your fiduciary must avoid conflicts and not profit at your expense—such as a broker secretly prioritizing high-commission products over your financial security.
- Duty of Care: They must act prudently, researching investments thoroughly to suit your needs, not negligently exposing you to undue risks.
- Duty of Good Faith and Fair Dealing: Full disclosure is essential—no hiding risks in your brokerage statements or material facts about investments.
- Duty of Confidentiality: Safeguarding your sensitive financial information from misuse.
Breaches often arise from intentional self-dealing or negligence, like a broker pushing unsuitable high-risk securities that devastate your portfolio.
As victims, you may suffer significant losses, but we at Varnavides Law excel at uncovering evidence of these deviations in securities cases. If this resonates with your experience, reach out for a free consultation to discuss how we can investigate and hold them accountable.
Common Examples of Breach of Fiduciary Duty
Breaches can occur in various settings, especially in finance and business where trust is essential. Here are some frequent scenarios, particularly relevant to our practice at Varnavides Law:
- Investment Fraud and Securities Violations: Your advisor pushes unsuitable investments, like non-traded REITs, to inflate commissions, disregarding your risk tolerance and causing substantial losses.
- Business Partnership Disputes: A partner diverts opportunities, such as steering investment deals to their personal ventures, eroding your shared assets.
- Corporate Officer Misconduct: Executives misuse funds or hide conflicts, like ties to competing investment firms, harming shareholders like you.
- Trustee or Executor Failures: Mismanaging estate investments, such as undervaluing securities for personal benefit.
- Broker Negligence: Churning your account with excessive trades or unauthorized transactions in FINRA-arbitrated cases.
These breaches often stem from hidden agendas, and in our nationwide securities litigation practice, we’ve helped victims reclaim losses—for instance, in an anonymized case, we pursued a broker’s unsuitable recommendations through FINRA arbitration, resulting in a favorable award for the investor.
Documenting your evidence strengthens your position; let us guide you—contact us for a confidential evaluation to start reclaiming your financial security.
Elements of a Breach of Fiduciary Duty Claim
To succeed in a claim, you must prove four key elements. This establishes the foundation for holding the fiduciary accountable. Here’s a breakdown:
Element | Description |
Existence of a Fiduciary Relationship | Establish a trust-based bond, such as your broker-client dynamic in securities investments, where duties are owed to protect your interests. |
Breach of Duty | Demonstrate violations like self-dealing in unsuitable investment recommendations or negligence in monitoring your portfolio. |
Damages | Prove actual harm, such as losses from fraudulent securities or missed opportunities in your investments. |
Causation | Connect the breach directly to your damages—e.g., the broker’s conflicted advice led to your portfolio’s decline. |
Meeting these elements requires solid evidence, such as emails, financial records, or expert testimony. Courts scrutinize these claims closely, so working with an experienced lawyer is essential to gather proof and present a strong argument.
Potential Damages and Remedies
If a breach is proven, victims can seek various remedies to make things right. The goal is to restore what was lost and prevent future harm.
- Compensatory Damages: These cover your direct losses, like recovering stolen funds or the value of mismanaged investments. For example, if a partner’s breach cost your business $100,000, you could claim that amount.
- Punitive Damages: In cases of intentional or malicious conduct, courts may award extra sums to punish the fiduciary and deter others. This is common in fraud-heavy breaches.
- Equitable Remedies: Non-monetary options include:
- Injunctions to stop ongoing harm, like barring a partner from competing.
- Disgorgement, where the fiduciary returns ill-gotten profits.
- Rescission, undoing a bad transaction.
- Accounting, requiring a full financial review.
In securities cases, arbitration often leads to faster resolutions.
Note that this content is provided for general informational and educational purposes only and does not constitute legal advice or an attorney-client relationship. The information presented here is not a substitute for professional legal counsel tailored to your specific circumstances.
If you need help, contact us.
At Varnavides Law, we’ve helped clients secure these remedies in business and investment disputes. The specific award depends on your case’s facts, but pursuing them promptly preserves evidence and strengthens your position.
How Varnavides Law Can Help
As victims of a breach, you need a lawyer who understands the emotional and financial toll. At Varnavides Law, PC, led by Gary Varnavides, we bring experience in securities litigation, investment fraud, and business disputes.
Our approach is straightforward: We listen to your story, assess your rights, and build a tailored strategy to seek justice.
We represent clients nationwide, handling cases in court or arbitration. Whether it’s gathering evidence of self-dealing or negotiating settlements, we’re dedicated to achieving the best outcomes. Our empathetic team offers free consultations to evaluate your claim without pressure.
Don’t face this alone—contact us today to protect your interests and recover what’s yours.
Frequently Asked Questions (FAQs)
What is the statute of limitations for a breach of fiduciary duty claim?
The statute of limitations for a breach of fiduciary duty claim varies significantly by jurisdiction, ranging from a few years to six years or more, and often depends on the specific facts of the case, such as whether fraud is alleged, what kind of relief is sought (money damages or equitable relief), and whether the relationship was based on a written agreement.
For example, California generally applies a four-year statute of limitations, while New York applies a six-year period for claims involving actual fraud.
Can I sue for breach of fiduciary duty without financial loss?
No, damages are required. However, even nominal harm can support a claim if other elements are met, potentially leading to equitable remedies.
How do I know if a fiduciary relationship exists?
Look for trust-based roles like advisor-client or partner-business. If one party controls your assets or decisions, a duty likely applies. We can review your situation in a free consultation.
What evidence do I need to prove a breach?
Key items include contracts, emails, financial statements, and witness statements showing self-interest or negligence. Expert analysis often helps in complex cases like investments.
Is arbitration better than court for these claims?
For securities and business disputes, FINRA arbitration is typically faster and more private—we’ll advise on the optimal path for your recovery goals.
