A person or entity is said to have a fiduciary duty if they're obligated to act in another party's best interest. If that person or entity fails to do so, they have breached their duties. Examples of a fiduciary include an attorney representing a client or a corporate officer representing a shareholder. It is important to note that this relationship must exist in accordance with applicable laws.
Such a relationship can either be established informally, through a statute, or formally by the terms of a written contract. For example, a breach can take place if a fiduciary withholds information prior to taking an action on behalf of whomever they owe a duty to. To prove that a breach happened, it must first be shown that there was a duty of full disclosure or loyalty owed, depending on the facts of the case. It must then be shown that a breach of that duty occurred and that it resulted in financial damages.
If it is shown that a fiduciary breach occurred, the victim may be entitled to compensation. The amount and type of compensation will depend on the facts of the case and the extent of the breach. As a general rule, the breached party may seek both actual and punitive damages from the party that committed the breach.
In some cases, business disputes can be resolved without the need to go to court. The parties could settle their differences through mediation or arbitration, either on their own or with the help of a mediator or arbitrator. This can prove idea, as it could lead to a swifter resolution with less strain on the relationships between a business and its clients. However, attorneys can represent business owners or other parties in court whenever necessary.