A fiduciary duty is an obligation that one party owes to another to act in their best interest. It generally involves the right to manage or protect another person’s assets or property. In this relationship, the person holding the obligation is required to avoid acting in their own best interest when it conflicts with the needs of the property owner.
When this obligation is breached, litigation can ensue. Allegations of misusing funds can have a dramatic impact on your relationship, making it crucial to seek the support of a skilled business attorney. A San Antonio breach of fiduciary duty lawyer at Begum Peláez-Prada PLLC could answer questions about the complexities of this obligation.
Anyone who owes a fiduciary duty to another person is held to the highest levels of scrutiny. They have a strict duty to act in the best interest of the property owner, who is known as the principal. A knowledgeable attorney serving San Antonio, such as Sasha Begum, could explain what a breach of the fiduciary duty might entail.
Professionals like lawyers or accountants typically have this obligation. When a person places their funds in the hands of these individuals, they should be able to rest easy knowing that their funds are secure.
The fiduciary is required to always make investments and other actions that are likely to lead to the best outcome for the principal. These decisions can never benefit the person holding the obligation—even if all parties were to gain—without the express consent of the person they are acting on behalf of.
These duties extend beyond the relationship between individuals and the professionals they hire to handle their taxes or represent them in court. Many alleged breaches involve the failure of corporate employees to protect the company’s interests. Specifically, corporate directors owe certain obligations to their employer, including duties of care and loyalty.
Acting with care means directors must educate themselves with any relevant material before making decisions that can impact the company. Instead of accepting information at face value or acting without considering every possible outcome, these parties must make critical assessments during the decision-making process.
Loyalty means avoiding any personal financial conflicts. It is unlawful for the director of a company to use their position to enrich themselves. Any attempt to advance personal interests over corporate needs could result in legal action.
There are many ways for a person in a position of trust to take advantage of the situation. These actions can have dire consequences, both for the individual and the corporation. Some of the common ways these obligations are violated include the following:
Each of these issues has the potential to result in lengthy litigation. Relying on the support of a San Antonio breach of fiduciary duty attorney could be invaluable when it comes to addressing these issues.
Dealing with these disputes can be distressing, given the high financial stakes often at play. If you are facing the possibility of legal action related to these issues, now is the time to seek legal help.
A San Antonio breach of fiduciary duty lawyer at Begum Peláez-Prada PLLC could serve as your advocate. Call right away for a private consultation.
