Breach of Fiduciary Duty

Breach of Fiduciary Duty Lawyer in Boca Raton

When a trustee, corporate officer, financial advisor, or business partner holds a position of trust, the law demands they act in your best interests, not their own. A breach of fiduciary duty occurs when that obligation is violated, and the consequences for beneficiaries, shareholders, and business partners can be severe. If you believe a fiduciary has acted against your interests, the attorneys at Bloodworth Law, PLLC are ready to evaluate your claim and help you pursue accountability. Call us today at 407-449-8958 to schedule a free consultation.

Breach of fiduciary duty cases are among the most consequential disputes in Florida civil litigation. They arise in trust administration, corporate governance, and business relationships alike, and they require a clear-eyed understanding of both the fiduciary relationship and the specific duties it imposes.

What Is a Fiduciary Duty?

A fiduciary duty is a legal obligation requiring one party (the fiduciary) to act with loyalty, good faith, and care in the best interests of another party who has placed trust and confidence in them.

A fiduciary relationship exists whenever one party is entrusted with authority or discretion over another’s affairs. Florida law recognizes this duty in a wide range of contexts. Common examples include:

• Trustee to beneficiary: A trustee must administer trust assets solely for the benefit of the beneficiaries, exercising prudence and avoiding self-dealing or conflicts of interest.
• Corporate officers and directors to shareholders: Officers and directors of a corporation owe fiduciary duties of loyalty and care to shareholders, which include making decisions in good faith and placing the corporation’s interests above personal gain.
• Financial advisors to clients: A financial advisor operating under a fiduciary standard must recommend strategies in clients’ best interests, not strategies that generate higher commissions at the client’s expense.
• Business partners to one another: Fiduciary duty exists between partners in many business relationships, requiring each party to act honestly and in the shared interest of the enterprise rather than for personal advantage.
• Attorneys to clients: The attorney-client relationship carries fiduciary obligations including loyalty, confidentiality, and the duty to act in the client’s best interests at all times.

A fiduciary obligation is not created by contract alone. Courts may establish the existence of a fiduciary relationship based on the nature of the parties’ dealings and the degree of trust one party places in the other.

How Does Florida Define a Breach of Fiduciary Duty?

A breach of fiduciary duty occurs under Florida law when a fiduciary fails to meet their legal obligation to the party they serve, whether by self-dealing, concealing information, misappropriating assets, or otherwise placing their own interests above those of the person or entity they represent.

To establish a fiduciary duty claim in Florida, a party must generally prove four elements:

1. A fiduciary relationship existed between the plaintiff and the defendant at the time of the alleged conduct.
2. The fiduciary breached their duty by failing to act in good faith, with loyalty, or with the care that a similarly situated person would exercise under similar circumstances.
3. The breach caused harm: the plaintiff suffered financial losses or other measurable damages as a direct result of the fiduciary’s conduct.
4. Damages are quantifiable: the court must be able to determine what the plaintiff lost or what the fiduciary wrongfully gained.

A clear breach may take many forms. A trustee who uses trust funds for personal expenses commits self-dealing. Corporate officers who divert a business opportunity to a competing venture they privately own violate their duty of loyalty. Financial advisors who churn accounts to generate commissions at clients’ expense breach their fiduciary obligation. Board members who authorize transactions that benefit themselves at the corporation’s expense may expose themselves to personal liability.

What Remedies Are Available in a Breach of Fiduciary Duty Case?

Florida courts can award a range of remedies in a fiduciary duty case, including compensatory damages, disgorgement of profits the fiduciary wrongfully obtained, and in cases of egregious misconduct, punitive damages.

The goal of a breach of fiduciary duty lawsuit is to restore the injured party to the position they would have occupied had the breach not occurred, and to prevent the fiduciary from profiting from their wrongdoing. Depending on the facts, available remedies may include:

• Compensatory damages to cover actual financial losses caused by the breach.
• Disgorgement requiring the fiduciary to return any profits or benefits they gained through the breach.
• Punitive damages where the fiduciary’s conduct was intentional, fraudulent, or particularly egregious. These are designed to punish and deter, not merely compensate.
• Removal of a trustee or corporate officer from their role when continued service would harm those they are obligated to protect.
• Injunctive relief to stop ongoing harmful conduct before further damage occurs.

Florida courts apply equitable principles in many of these cases, particularly where the fiduciary relationship involves a trust or estate. Proving the full scope of harm (and connecting it directly to the breach) is often where these cases turn, which is why detailed documentation and clear legal strategy matter from the outset.

Fiduciary Duty in Trust and Estate Disputes

In the trust context, Florida’s Trust Code imposes specific fiduciary duties on trustees, including the duty of loyalty, the duty to act prudently, the duty to account, and the duty to keep trust property separate from personal assets. Failing any of these duties can give rise to litigation.

Florida’s trust statutes establish that a trustee’s overriding obligation is to administer the trust solely in the interests of the beneficiaries. When a trustee fails in this responsibility by making self-interested investment decisions, failing to account for trust assets, or distributing assets improperly, beneficiaries have grounds to pursue a breach of fiduciary duty claim.

Fiduciary duty claims in the trust context may accompany other forms of estate litigation. For example, a trustee who was unduly influenced in their actions, or who acts against a beneficiary’s interests because of improper outside pressure, may be subject to multiple overlapping claims. Our Boca Raton trust litigation attorneys handle these matters with the seriousness they require.

Frequently Asked Questions

How do I know if a fiduciary relationship exists in my situation?

A fiduciary relationship exists whenever one party places special trust and confidence in another, granting them authority or discretion over important interests. Courts look at the nature of the relationship, the degree of dependency, and whether one party had superior knowledge or control. If you are a trust beneficiary, a shareholder in a closely held corporation, or a client of a financial advisor, a fiduciary duty likely applies. An attorney can help you determine whether the specific facts of your situation establish an actionable claim.

What is the statute of limitations for a breach of fiduciary duty claim in Florida?

Florida law generally imposes a four-year statute of limitations on breach of fiduciary duty claims under Florida Statutes § 95.11. However, the clock may be tolled, meaning paused, if the breach was fraudulently concealed. Because timing issues can affect your ability to pursue a claim, it is important to speak with an attorney as soon as you suspect a breach.

Can a fiduciary be personally liable even if they acted through a corporation or trust?

Yes. A fiduciary who commits a breach of their duty may face personal liability even if they acted in a representative capacity. Courts do not allow the corporate form or trust structure to shield a fiduciary who engaged in self-dealing, fraud, or intentional misconduct. Officers, directors, and trustees can all be held individually responsible in the appropriate circumstances.

Speak With Our Boca Raton Breach of Fiduciary Duty Attorneys

When a fiduciary fails the person they were entrusted to serve, the harm can be significant, and Florida law provides meaningful remedies. At Bloodworth Law, PLLC, our breach of fiduciary duty attorneys in Boca Raton handle these cases with the rigor and precision they demand. Whether you are a trust beneficiary, a shareholder, or a business partner who has been wronged, we are prepared to assess your claim, advise you on your options, and pursue the outcome you deserve.

Contact Bloodworth Law, PLLC today for a free initial consultation. Call 407-449-8958 or reach us online. We serve clients in Boca Raton and throughout South Florida.