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Did a breach of fiduciary duty damage your company?

When you first started running your business, you likely learned very quickly that you could not do everything on your own. Though you may have tried to just work more hours and keep everything together yourself, your business grew to a point at which you needed to enlist outside help. Though bringing in additional people may have seemed nerve-wracking at first, you likely also felt that it showed just how much your business had grown.

In efforts to handle your business assets, you may have utilized an accountant or other financial professional to make sure everything in your company stayed in order. At first, the arrangement may have seemed to work out well, but more recently, you noticed that the numbers just were not adding up.

Breach of fiduciary duty

When you enlisted the services of the financial professional chosen to handle your company’s monetary affairs, you entered into a fiduciary relationship with this person. You likely created a contract to ensure that you understood what the other party would do for you and that the other party understood what you expected. The other party had a fiduciary duty to act in your best interests. If he or she has not done so, that party has likely breached that duty.

What does this mean for you?

Often, when a fiduciary commits a breach, damages can occur. For example, if your accountant or another financial professional used your company’s funds for personal gain or encouraged you to make money moves that would benefit another party rather than your company, you and your business may have lost funds or suffered damages in other ways. Undoubtedly, you want to hold the person accountable for those unjust actions.

What can you do?

If you believe this has happened to you, you do have legal options for seeking justice. You could file a lawsuit against the other party, claiming that this breach has occurred. However, you will have to prove the following elements in court:

  • That the accused party had a fiduciary duty to you and your company
  • That the accused party breached that duty
  • That you or your company suffered damages as a result of the breach
  • That those damages occurred as a direct result of the breach

Fortunately, you do not have to try to prove your claims alone. You can discuss your situation and your legal options with an experienced Minnesota attorney who can guide you through this ordeal.