California Breach of Fiduciary Duty
What is a Fiduciary Duty?
Fiduciary duty refers to an obligation to act in good faith for the benefit of another person or business entity to whom a duty is owed and not to do anything that would harm that person or entity. It is a duty to act with the utmost good faith for the benefit of the other person. This can also include a duty of loyalty and confidentiality.
Officers in a managerial capacity and directors of a corporation are deemed to owe a fiduciary duty to the corporation and its stockholders. Although lower level employees generally do not owe a fiduciary duty to their employers, absent a written agreement, they do owe a duty of loyalty and are obligated to place their employer's interest ahead of their own. This can essentially have the same effect as a fiduciary duty.
How is a Fiduciary Duty Created?
A fiduciary is generally established when someone puts his or her confidence and trust in the integrity of another person who voluntarily accepts.
Handling California Breach of Fiduciary Duty Claims
Fiduciary duty terminates when an employee leaves his or her place of employment. Thus, the former fiduciary can compete with his former employer. However, the duty not to misappropriate trade secrets or utilize confidential information continues. A claim for breach of fiduciary duty based on conspiracy to breach fiduciary duty and/or misappropriation of trade secrets must be brought within three years. However, breach of fiduciary duty that is not contractual or based on a statute has a two years statute of limitations.
Remedies for breach of fiduciary duty include compensatory and punitive damages.
Contact Our Attorneys
At the law office of Fisher & Talwar, we have an extensive background handling breach of fiduciary duty claims. We are business litigation attorneys who are experienced in prosecuting and defending claims based on California breach of a fiduciary duty.
Contact our law firm online or call 213-891-0777 to schedule a free initial consultation. We are available to meet with you between 8:30 a.m. and 6:00 p.m., Monday through Friday. Evening and weekend consultations are available by appointment.