August 31, 2015

Fiduciaries, such as attorneys, accountants and even trustees, generally have a financial and/or legal obligation to some other individual or party. When fiduciaries fail to live up to their obligations in this role, they can be sued for breach of fiduciary duties, making them potentially liable for paying a significant amount of damages.

Whether you are a fiduciary or someone who has a relationship with a fiduciary, below are some important facts you should know about breach of fiduciary duties.

Here’s What You Should Know about Breach of Fiduciary Duties

1 – Intent is not necessary to establish a breach of fiduciary duties.

Fiduciaries and those they serve should know these important facts about breach of fiduciary duties, a Denver business lawyer explains.

Fiduciaries and those they serve should know these important facts about breach of fiduciary duties, a Denver business lawyer explains.

In other words, fiduciaries can be held liable for unintentional mistakes, as well as intended breaches of duties. Some of the more common examples of the mistakes that can lead to allegations of breach of fiduciary duties include (but are by no means limited to):

  • Accidentally comingling another party’s personal assets with the fiduciary’s assets
  • Forgetting or failing to keep detailed records regarding assets
  • Making risky or unsound investments with the assets a fiduciary has been entrusted to manage
  • Failing to accurately represent the status of some asset or estate
  • Failing to act impartially in all fiduciary duties.

2 – There are generally 4 things that need to be proved to establish a breach of fiduciary duties.

When allegations of breach of fiduciary duty arise, the following will need to be established in order to prove that a breach of these duties has actually occurred (and, in turn, to win a breach of fiduciary lawsuit):

  1. There was a fiduciary relationship in place.
  2. The fiduciary failed live up to his or her legal and ethical obligations.
  3. The person who is suing (i.e., the plaintiff) was entitled to the fiduciary duties in question.
  4. The breach of fiduciary duties caused the plaintiff some damage or harm.

3 – There are viable defenses to allegations of a breach of fiduciary duties.

While allegations of breach of fiduciary duties can arise for various reasons, there can be a number of legitimate defenses against these allegations. In particular, just some possible defense arguments can include that:

  • The perceived breach of fiduciary duties never, in fact, occurred.
  • The plaintiff relinquished certain rights when entering into the relationship with the fiduciary.
  • The case should be dismissed because the statute of limitations has expired.

Contact an Experienced Denver Business Lawyer at Downey & Associates, PC

If you believe a fiduciary has breached his or her duties with you – or if you are a fiduciary who has been accused of breaching your duties, contact Denver Business Lawyer Thomas E. Downey for help protecting your rights and interests. Since 1983, Thomas Downey and the other legal professionals at Downey & Associates, PC, have been providing individuals and businesses in the Denver Metro Area and throughout the U.S. with the highest level of legal service for their business, litigation and other legal issues.

To learn more about your rights and options, as well as our various services, contact our firm today by calling (303) 813-1111 or by emailing us using the contact form on this page.

From our law offices in Centennial, we serve clients throughout Colorado and the U.S.

Categories: Breach of Fiduciary Duties