Understanding Fiduciary Duties

Corporate officers, including CEOs, Presidents and Chief Financial Officers, as well as corporate directors, shareholders, trustees of estates, insurance agents and financial managers have certain well-defined fiduciary duties. When allegations of financial mismanagement or general malfeasance arise, audits must be conducted, records reviewed and contract terms and conditions evaluated to determine whether wrongdoing occurred.

At the law office of Valenti Hanley PLLC in Louisville, Kentucky, our attorneys work with forensic accounts, handwriting experts and other professionals to gather information and evidence in civil litigation involving alleged breaches of fiduciary duties. Our experience in representing both fiduciaries and beneficiaries means we understand what the law requires of both. As a result, our attorneys are positioned to assert and defend the rights of fiduciaries and beneficiaries when either side fails to comply with its obligations.

If you have been accused of violating your fiduciary responsibility, or if you have suffered financial harm due to the actions of a fiduciary, contact us today and schedule an appointment to discuss your case.

Grounds For Litigation Involving Fiduciary Responsibility

In general, fiduciaries are responsible for protecting the interests of a beneficiary. As such, fiduciaries have the following responsibilities and obligations to beneficiaries:

  • A fiduciary is required to act on an informed basis and in a manner in which he or she believes in good faith to be in the best interest of the beneficiary.
  • A fiduciary must exercise due diligence in complying with and acting according to the professional standards of their profession. They are required to provide a maximum amount of protection for their beneficiary, disclosing information that allows him or her to act in his or her best interests.
  • Fiduciaries are required to exercise due diligence in ensuring that they adhere to the professional standards of their profession, providing protection and information to their beneficiary.
  • The interests of a beneficiary must always take precedent over those of the fiduciary.
  • A fiduciary must avoid acting as a dual agent in any enterprise that may conflict with the interests of his or her beneficiary. If a fiduciary decides to act as a dual agent, he or she must first disclose this information to the beneficiary and receive consent to do so.
  • Any course of action on the part of a fiduciary that is opposed to the interest of a beneficiary must be disclosed to the beneficiary before it can be undertaken. Permission to pursue such a course of action must first be obtained from the beneficiary.

Negligence And Financial Loss

A violation of fiduciary duty can result in significant financial losses. Whether you are the heir to a trust, a minority shareholder involved in a shareholder dispute, or a CFO accused of squandering retirement benefits, we have the experience and knowledge to handle your case.

In many instances where criminal wrongdoing is not involved, cases boil down to a misunderstanding of what counts as a fiduciary role or obligation. Our attorneys review contracts, trusts, insurance policies and shareholder agreements to determine what fiduciary duties are at issue and why. To schedule an appointment and discuss your case, call 502-617-6209 or toll free 866-617-6209 today.