A fiduciary owes a duty of care to someone to act in their best interests to benefit them financially. Fiduciary relationships are common in business. A business relationship can create a fiduciary duty to act with full disclosure, fair dealing, and good faith. A party may owe the other party the duty to act with loyalty and confidentiality. Our South Carolina business attorney discusses how parties breach their fiduciary duty and how you can rectify a breach of fiduciary duty.
Examples of Breaches of Fiduciary Duty in South Carolina
Many business relationships create a fiduciary duty. Examples of parties who may have a fiduciary duty include:
- Accountants
- Employees
- Guardian or conservator
- Personal representative
- Attorney
- Trustee
- Power of attorney
- Corporate officer
- Principals
A fiduciary is held to the highest standard of conduct when executing their duties. They must act in good faith to do what is in the other party’s best interest. The fiduciary must keep the party’s money and property separate from the fiduciary’s assets. They must also keep accurate and complete records and work to manage the person’s property with care.
Examples of breaches of the fiduciary duty include:
- Failing to disclose relevant facts and information
- Acting in the best interest of a competitor adverse party
- Denying access to documents by shareholders, clients, or partners
- Sharing trade secrets and confidential information
- Failing to disclose a conflict of interest
- Acting in the fiduciary’s best interest and/or making side deals
- Embezzling money from a trust, estate, or client account
- Negligent management of assets and income
- Failing to keep accurate books and records
- Exposing a partnership to liability because of malfeasance or negligence
- Failing to follow the terms of a trust or a Will
The above list is not an exhaustive list of the ways a fiduciary could breach their duty of care. Breaches of fiduciary duty occur in many ways. If you believe a fiduciary breached their duty of care, talk with a lawyer as soon as possible about rectifying a case of breach of fiduciary duty.
What Should I Do if I Suspect a Breach of Fiduciary Duty?
If you believe a person of trust has breached the fiduciary duty they owe to you, investigate the matter immediately. Gather as much information and documentation as you can regarding the matter. Then, seek legal advice from a South Carolina business attorney.
Your attorney may advise you to take one or more actions to protect your best interests and rectify the breach of fiduciary duty. For example, suppose an employee breaches their fiduciary duty. In that case, your attorney may advise you to terminate the employment and take steps to mitigate the damages caused by the breach of duty.
You may need to file a lawsuit to rectify a breach of fiduciary duty. Generally, you have three years to file a lawsuit under South Carolina law. However, you should not wait to consult an attorney. Your lawyer will need to gather evidence proving you had a fiduciary relationship, the other party breached their duty, and you sustained damages because of the breach.
Schedule a Free Consultation With Our South Carolina Business Attorney
It can be financially and emotionally devastating if you trust another party and they breach their fiduciary duty. Contact our South Carolina business attorney to discuss how you can rectify a breach of fiduciary duty. You may be entitled to compensation for your damages and financial losses.