Most business disputes can be hashed out one way or another, thereby protecting the business, others threaten not just the business’s viability but also your own financial well-being. This is often seen when a director or executive breaches their fiduciary duty, which can cost you and your business a large sum of money and damage your business’s reputation among clients and the public.
To right the ship in these circumstances, you’re probably going to have to take legal action. That might sound simple enough, but these cases are usually highly complex and full of legal challenges and nuances. That’s why you’ll want to educate yourself as much as you can and avoid making some of the most common errors seen in these cases.
Errors to avoid in your breach of fiduciary duty case
Your breach of fiduciary case is going to be hotly contested. That means there’s no room for error when preparing and presenting your claim. Therefore, as you move forward with your case, you’ll want to make sure that you’re not making the following mistakes:
- Failing to set clear standards and goals: The fiduciaries in your business are tasked with making decisions that support the best interests of your business. If you fail to clearly articulate the goals, standards, and values of your business, then it’s going to be more challenging for you to show how the fiduciary strayed from expectations.
- Condoning questionable decisions: If you’re worried about actions taken by a fiduciary, then you need to find a way to bring those concerns to the attention of others in your business so that accountability can be obtained. If you let questionable decisions slide, then it’s easier for a fiduciary to argue that the decisions in question are in line with those that have previously been deemed acceptable.
- Not having a command of the facts: Given the nuances involved with these claims, you have to know everything about the case and the events in question. If you don’t, then you might be taken by surprise either during negotiations or at trial, both of which can put you at a disadvantage.
- Not putting your concerns in writing: You don’t want your case to turn into a he-said, she-said situation. If it does, it might be hard for you to prove your case by a preponderance of the evidence, which is the standard that you’ll be working with. Therefore, be sure to document your concerns, your communications with the fiduciary in question, and any witnesses who have disclosed concerning behaviors that they’ve witnessed.
- Keeping information from your attorney: If you keep important details from your attorney, then they won’t be prepared to counter defense arguments that can destroy your claim. Make sure you’re entirely clear with your legal team so that they know what to expect and how to best protect your and your business’s interests.
Are you ready to find accountability for breach of the fiduciary duty?
A breached fiduciary duty can do great harm to a business. Don’t let your business’s future be derailed by egregious behavior. Instead, build the legal arguments you need to feel confident moving forward with your commercial litigation. By doing so, you can increase your chances of recovering the compensation that you and your business deserve while still protecting your public image and your relationships with your clients.