Fiduciary misconduct refers to the breach of the fiduciary duties owed by a person in a position of trust and confidence to another person or entity. Fiduciary duties can arise in a variety of contexts, including in business, finance, and estate planning.
A fiduciary is someone who has a legal obligation to act in the best interests of another person or entity, and to put their interests above their own. Examples of fiduciaries include trustees, executors, guardians, agents acting under a power of attorney, and financial advisors.
Fiduciary misconduct can take many forms, including:
- Self-dealing: A fiduciary may engage in self-dealing by using their position of trust to benefit themselves at the expense of the person or entity they are supposed to be serving.
- Negligence or incompetence: A fiduciary may breach their duty of care by acting negligently or failing to meet professional standards.
- Fraud or misrepresentation: A fiduciary may engage in fraudulent conduct or make misrepresentations to deceive the person or entity they are serving.
- Conflict of interest: A fiduciary may have a conflict of interest that prevents them from acting impartially and in the best interests of the person or entity they are serving.
When fiduciary misconduct occurs, it can have serious consequences for the person or entity that was harmed, and may result in financial losses, emotional distress, and damage to relationships. Legal remedies for fiduciary misconduct can include filing a lawsuit to recover damages or seeking court intervention to remove the fiduciary from their position.
It is important for individuals and entities to carefully choose their fiduciaries and to monitor their actions to help prevent fiduciary misconduct from occurring. If fiduciary misconduct is suspected, seeking the advice of an experienced attorney can help to protect the interests of the harmed party and pursue appropriate legal remedies.