Introduction to Breach of Fiduciary Duty Claims
In some business relationships, shareholders, members and partners are held to a “fiduciary” standard. This means that they owe a duty to one another and to the business to act in good faith and with care and loyalty. When a fiduciary duty is breached, serious damage to the business often results. At The Durst Law Firm, we bring and defend breach of fiduciary duty cases against directors, officers, shareholders and partners.
Not every partnership dispute or corporate disagreement is the result of a breach of fiduciary duty. Before advising you, we will investigate all the pertinent facts and circumstances surrounding your specific situation. Here are some of the types of issues that can lead to litigation:
- Self-dealing: A director, officer or majority shareholder is not entitled to benefit himself or herself at the expense of the company or other shareholders. Nor can these individuals enter into transactions with people whose interests are adverse to the business.
- Breach of contract: A director, officer or shareholder cannot consent to allow a third party to breach a contract between the third party and the business.
- Dissenter's rights: A majority shareholder who allows a merger or other form of takeover without offering a buyout to shareholders who oppose the merger may be vulnerable to a lawsuit.
Of course, this short list is non-exhaustive. To preserve your rights and your business interests, call The Durst Law Firm at (513) 621-4999 to set up a consultation, or call Alex Durst’s direct line at (513) 621-2500.