When your loved ones do not feel comfortable managing their own affairs, they may appoint a trustee or representative to handle things for them, as well as an executor to handle their estate in the event of their death. But with these powers comes an obligation: all appointed representatives must act in the best interests of the individual they represent. This is called a fiduciary duty.
A similar fiduciary duty extends to stockbrokers, corporate officers and other financial agents that you have given permission to act on your behalf. They also must act in your best interests to the best of their ability. If you feel that you or a loved one has an agent who has breached their fiduciary duty, call business attorney Tom Bradley at (775) 323-5178.
Claiming a Breach of Fiduciary Duty
In order to establish a breach of fiduciary duty in Nevada, a fiduciary relationship must exist between two parties. This is a relationship in which one party is bound to act for the benefit of another party. In such a relationship, one party puts their confidence in the other, leading to a situation where the trusted party’s opinion is dominant and highly influential.
To establish a breach of fiduciary duty, the plaintiff must show:
- That they were owed a fiduciary duty by the defendant
- That the defendant breached his or her fiduciary duty
- That this breach directly caused the plaintiff damages
- The amount of damages owed to the plaintiff
Fiduciary relationships can exist in many different situations but they tend to occur whenever there is a significant imbalance of knowledge or power between two people. Fiduciary breaches occur when the more knowledgeable, powerful person takes advantage of the imbalance, either through self-dealing or some other unethical tactic.
One of the most common fiduciary relationships is between a stockbroker and client. You hire a stockbroker because you presume they have more knowledge of the stock market than you do, and if they deliberately mislead you, they could be open to a lawsuit.
Fiduciary Duty of Corporate Officers and Directors
In a corporation, a fiduciary relationship exists between the board of directors and the shareholders. The Board of Directors has a fiduciary duty to take care of the company and are often privy to information about the company that the average shareholder may not know.
If members of the board or other corporate officers take any steps that do not affirmatively protect the interests of the corporation, they could be liable for a breach of fiduciary duty to shareholders. In putting their company second, they violate the trust placed in them by shareholders, who can sue officers or board members for damages that result from their actions.
Tom Bradley Enforces Fiduciary Duty in Nevada
Having served clients in Nevada and California for more than thirty years, Tom Bradley knows how to determine when a fiduciary relationship has suffered a breach and he will help you recover any money you may have lost as a result, along with other damages.
If you believe that someone you trust has been taking advantage of you and your business, call Mr. Bradley at (775) 323-5178 or contact his firm through this website. Mr. Bradley serves clients throughout the state of Nevada.