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Civil litigation

breach of fiduciary duty

Breach of fiduciary duty is a cause of action or claim in civil litigation (lawsuits) that provides the legal basis for a person or entity to recover its damages/losses when there is a special relationship based on trust and confidence (attorney and client or trustee and beneficiaries) and the party who owes the fiduciary duty breaches its duty of loyalty (conflict of interest) or duty of care (informed judgment in decision-making).

In Alabama, a breach of fiduciary duty occurs when an individual or entity, who is obligated to act in the best interest of another party due to a special trust relationship, fails to do so. This breach can involve a conflict of interest or a failure to make informed decisions, which are core components of the duty of loyalty and duty of care, respectively. Fiduciary relationships are often found between attorneys and clients, trustees and beneficiaries, corporate directors and shareholders, and other similar relationships where one party has a legal obligation to act primarily for the benefit of another. When a breach of fiduciary duty is alleged, the injured party may file a civil lawsuit seeking damages for losses incurred due to the breach. Alabama courts will evaluate whether the fiduciary relationship existed, the scope of the duty, and whether the duty was breached, resulting in damage to the plaintiff. Remedies may include compensatory damages, and in some cases, punitive damages if the breach involved fraud or malice.

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Articles

Fiduciaries and Their Duties: Upholding Trust in Transactions

Why does it matter if someone has a fiduciary duty, and how does it impact both everyday people and businesses? Today, we’ll take a look at this important legal concept to demystify the concept of fiduciaries and the responsibilities they bear.

Civil litigation

breach of fiduciary duty

Individual & Family Legal Plan

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Alabama State Code

Alabama State Code

Civil litigation

breach of fiduciary duty

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