A common theme that arises in business litigation is the role and duty of a fiduciary. A fiduciary relationship is characterized by a unique degree of trust and confidence between the parties. In many instances, the fiduciary will have superior knowledge, skill or expertise. Under Connecticut law the existence of a fiduciary relationship is flexible and will not exclude new situations. However, common examples of fiduciary relationships include:
- Attorney and client
- Principal and agent
- Partners in business
- Shareholders in closely held companies
- Money managers
- Trustee and beneficiary
- Executor and heirs
Once it is established that a fiduciary relationship exists, the fiduciary is held to a higher standard of care which includes a duty to act with the utmost good faith, fair dealing and loyalty.
When a fiduciary does not act with the utmost good faith, fair dealing and loyalty then the fiduciary has breached their fiduciary duty. Common examples include a fiduciary not acting with the utmost sensitivity, honesty, candor, scrupulous good faith or undivided loyalty.
When breach of fiduciary duty is uncovered, an action can be brought in tort against the offending fiduciary. An experienced lawyer can help you not only identify a violation of a fiduciary duty, but also proceed with litigation to hold those individuals or entities responsible.