Litigation
Breach of Fiduciary Duty Attorney
Directors, officers, partners, and majority shareholders owe legal duties of loyalty and care to the businesses and people they serve. When those duties are violated, we hold wrongdoers accountable.
Fiduciary Duty Claims in Business Disputes
Fiduciary duties are among the strongest legal obligations recognized in business law. When a director, officer, managing member, or majority partner violates their duties to the company or fellow owners, the law provides powerful remedies — including disgorgement of profits, damages, and removal from the company.
Who Owes Fiduciary Duties?
- Corporate directors and officers (duty of care, duty of loyalty)
- Managing partners in general and limited partnerships
- Managing members and managers of LLCs
- Majority shareholders in closely-held corporations (in some circumstances)
- Attorneys, accountants, and financial advisors to the business
- Controlling shareholders in certain derivative claim situations
Common Breach of Fiduciary Duty Claims
- Self-dealing and undisclosed conflicts of interest
- Usurping corporate opportunities for personal benefit
- Improper compensation or self-authorized distributions
- Misappropriation of company assets, funds, or trade secrets
- Gross negligence in business management decisions
- Freeze-out and oppression of minority shareholders
- Failure to maintain proper corporate records and governance
Available Remedies
- Monetary damages and disgorgement of wrongful profits
- Injunctive relief — stopping ongoing harmful conduct
- Removal of the offending officer, director, or manager
- Court-supervised receivership
- Attorney's fees in appropriate cases
Suspected Breach of Fiduciary Duty?
Time is critical — contact us today.
FAQ
The duty of care requires directors and officers to act with
the care that a reasonably prudent person would exercise in the same position — making
informed, good-faith decisions. The duty of loyalty requires them to put the company's
interests ahead of their own — no self-dealing, no undisclosed conflicts, no personal
enrichment at the company's expense. The duty of loyalty is the one most frequently
violated in business disputes.
Yes, in many circumstances. Partners in general partnerships
owe each other fiduciary duties by default. In LLCs, the operating agreement may define
or limit these duties, but courts can still impose fiduciary obligations in certain
situations. In closely-held corporations, majority shareholders may owe duties to
minority shareholders in some states. We analyze your specific entity structure and
governing documents.
Hold Wrongdoers Accountable
Nexus Legal Partners provides experienced fiduciary duty litigation counsel.