Fiduciary duty is a key concept in many areas of life. Fiduciaries are defined as people who are meant to put someone else’s interests before their own. Examples of relationships where one party has a fiduciary duty to another include marriage, lawyers with clients, and doctors with patients. Executors of wills also have a fiduciary duty to carry out the wishes of the decedent. Everyone in New Jersey should understand what a breach of fiduciary duty is, particularly when it comes to professional relationships.
Why is fiduciary duty important?
Without the concept of fiduciary duty, there would be no trust in many professional settings. A client needs to trust their lawyer to defend their interests in order to justify hiring one. In the business world, employers must be able to trust workers to do their jobs with the interests of the company in mind. It’s not appropriate for workers to promote themselves or their side businesses on company time.
The issue of fiduciaries also comes up in the world of money management. Some financial advisors are regarded as fiduciaries, but not all are. Fiduciary financial advisors generally have wider latitude in their duties than non-fiduciaries.
What happens when the duty is breached?
When fiduciary duty is breached, that can result in real problems. The fallout from breached fiduciary duty can include lost profits, medical injuries and more. People who’ve been affected by these breaches may seek redress through civil litigation. Consulting an experienced business dispute attorney might be an important first step for anyone who’s lost out due to a lack of fiduciary duty.