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What is Fiduciary Duty?

A fiduciary duty is one person’s obligation to act in the best interests of another party, typically in relation to management of property and/or money. For example, a businesses’ board member has a fiduciary duty to the businesses’ shareholders, a trustee has a fiduciary duty to the beneficiaries of the trust, and a lawyer has a fiduciary duty to their clients. This obligation exists whenever a relationship is entered into when it is needed to obtain certain expertise in a given field, and involves a special trust and reliance on the fiduciary to exercise both their expertise and their discretion when acting on behalf of the client. The fiduciary must knowingly accept these terms, and is barred from acting in a way that opposes the interest of their client, as well as in a way that is for their own benefit.

This duty can be breached for various reasons in various industries, including real estate, employment, business, and other areas where a person’s own interests may interfere with their fiduciary duty. Some common examples of breaches of fiduciary duty are acts of fraud that give the fiduciary an advantage over their client; a lawyer who commits legal malpractice against their client by being negligent; and more. If is it discovered that a fiduciary benefited, profited, or otherwise gained an advantage from their relationship with a client through conflict of interest and duty by taking advantage of their position, they can be held liable.

Art Matthews, founder of The Matthews Law Firm, Inc., is a breach of fiduciary duty attorney in Los Angeles who has helped protect the rights of his clients for the last 20 years. Mr. Matthews can assist you in determining whether a breach of fiduciary duty has been made against you and can thoroughly explain the legal options available to you. To learn how Mr. Matthews can help you, call 800-449-4850 today.

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