Sometimes getting a business up and running and keeping it running smoothly takes some help. Business owners in Louisiana may take on partners, seek out investors and, if their companies grow enough, may end up with shareholders. A fiduciary relationship is formed and if any party breaches his or her duty, the offended party may seek compensation for any resulting losses.
A fiduciary duty is described as one’s responsibility to act in and consider the best interests of the party to whom the duty is owed. The relationship between the two parties must be one that was formed under the law — such as through the signing of a contract. Each party’s responsibilities should be outlined in that contract.
If a fiduciary breaches his or her duty, meaning he or she failed to live up to the terms of the contract, the offended party has a few options available to seek relief. The aggrieved party can:
- Discuss the issue privately with the fiduciary
- Have legal counsel engage in negotiations
- Try mediation or arbitration
- Take the matter to court
Settling these types of matters out of court is ideal, and many people have succeeded in doing so. However, for others, litigation is the only route that may produce acceptable results. If one takes a case to trial, it will be necessary for that individual to:
- Prove a fiduciary duty exists
- Provide evidence that a breach occurred
- Supply proof of damages sustained
Dealing with a fiduciary who fails to meet his or her obligations can be frustrating, to say the least. It is not something one should have to put up with or let the fiduciary get away with. Louisiana residents who find themselves trying to manage this type of situation can turn to legal counsel for guidance and, if deemed appropriate, further assistance seeking relief.