Daily Law Group
P 949-612-2743

Protecting your business from fiduciary negligence

If you are in business with one or more partners in California, you know that it is a big responsibility. In this type of mutual relationship, partners owe a duty to the partnership as well as each other. Daily Law Group has experience representing partners who have experienced fiduciary negligence.

According to Findlaw, breach of fiduciary duty covers a wide range of issues. In business, there is the obligation that each partner act responsibly when directing or managing operations for the partnership. The duty of care requires that partners disclose all relevant information to the rest of the partners. Three elements must be proven to file a claim involving financial negligence:

  • That there was a fiduciary duty owed at the time of the dispute
  • The extent of the relationship
  • Whether the breach occurred within the scope of the relationship

If you are filing the suit, you must show financial damage because a partner violated your business relationship and took advantage of your trust. This type of violation can occur under various kinds of circumstances: when profits are concealed, the partnership contract is breached, an important fact is misrepresented or when a director betrays the company.

In California, the courts distinguish the breach of fiduciary duties in one of three categories: the violation of the duty of loyalty, of confidentiality or of reasonable care, which is negligence. If fiduciary negligence can be proven, punitive damages may be recovered.

Litigation for fiduciary negligence is often costly, and it can affect your business and its reputation. Before filing the lawsuit, a thorough investigation of financial transactions can ensure any suspicion is confirmed to prevent further damage to the partners and the company. Visit our webpage for more information on this topic.

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Newport Beach, CA 92660

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