Learn How an Atlanta Breach of Fiduciary Duty Attorney Can Help

When you have business partners, you each owe a fiduciary duty to the company. This is an obligation to act in good faith and to avoid pursuing your personal interests at the expense of the company’s interests. The purpose of this duty is to ensure the business remains strong and that ownership can maintain a degree of trust.

Things can go sideways quickly when there is a breach of the fiduciary duty. In many cases, it can lead to litigation and even potentially the liquidation of the business. If you are concerned that your rights as an owner have been impacted, the team at Poole Huffman is here to help. Let an Atlanta breach of fiduciary duty attorney advise you of your legal options today.

What Is a Fiduciary Duty?

A fiduciary duty is one of the highest standards of care recognized in law. It arises when one person or entity is legally obligated to act in another’s best interests. The fiduciary—whether a business partner, corporate officer, trustee, or financial advisor—must place the beneficiary’s interests above their own, exercising loyalty, honesty, and good faith in all dealings.

At its core, a fiduciary duty exists to protect relationships built on trust and reliance. When someone assumes control over another’s finances, assets, or business decisions, the law imposes a duty to act with integrity and transparency. This includes avoiding conflicts of interest, fully disclosing material facts, and refraining from self-dealing or misappropriation of funds.

Common fiduciary duties include the duty of loyalty, which prohibits acting for personal benefit at the expense of others, and the duty of care, which requires diligence, prudence, and informed decision-making. There is also the duty of good faith and fair dealing, which governs how fiduciaries communicate and manage expectations.

When a fiduciary breaches these obligations, the results can be severe—financial loss, reputational harm, and litigation. Georgia law allows victims of such breaches to seek restitution, damages, or other equitable remedies. Understanding these duties is the first step in protecting yourself or your business from misconduct.

Who Owes a Fiduciary Duty?

Fiduciary duties arise in a variety of circumstances. In general, they involve one party entrusting another with decision-making power or authority. This is especially common in business, among co-owners and management. Some of the most common examples include:

• Business Partners and Co-Owners
• Corporate Officers
• Directors
• Trustees
• Executors
• Agents Financial Advisors
• Financial professionals

Identifying whether or not a person owed you a fiduciary duty is the first step in determining if you have a viable claim. This might not be a contentious issue in some cases, but in others, you may be forced to prove in court that the other party was held to a higher standard as your fiduciary. An Atlanta breach of fiduciary duty attorney can identify the parties who broke their obligation to you.

Legal Remedies for Breach of Fiduciary Duty

When a fiduciary breaches their legal obligation to act in another’s best interest, state law offers several viable remedies. They are designed not only to compensate you financially but also to hold the wrongdoer accountable. Ultimately, everyone benefits if your case is successful, as it can deter future misconduct. Some of the potential remedies in your case include the following:

Compensatory Damages

Compensatory damages are the most common remedy. These damages are designed to reimburse you for the financial losses you suffered because of the breach. You could be entitled not only to your direct losses but also to interest, lost profits, reduced business value, or other direct financial consequences of the misconduct.

Disgorgement of Profits

If a fiduciary gained a personal profit through their misconduct, courts may order that person to return the profit. This is true even if you have not suffered a direct financial loss because of their behavior. These repayments, which are known as disgorgement, are designed to strip the wrongdoer of any unjust enrichment they obtained. Disgorgement is most often awarded in cases involving self-dealing or misappropriation of business opportunities.

Injunctive Relief

In situations where the fiduciary’s conduct poses future harm, a court may issue an injunction. An injunction is a court order that directs the fiduciary to stop the harmful behavior or refrain from taking specific actions that are causing you harm. The order might prevent them from transferring assets or even making decisions for your business that they would typically be authorized to make. These orders can be a powerful tool to avoid retaliation during litigation.

Accounting and Access to Records

If the breach involves hidden financial activities, missing information, or questions about how money was handled, the court can order a full accounting. This forces the fiduciary to produce financial records, explain decisions, and disclose how funds were used. An accounting is beneficial in partnership disputes, trust administration, and closely held business conflicts where one party controls the books.

Removal of the Fiduciary

In certain circumstances, the court may remove the fiduciary from their role. This is common in trust, estate, or corporate settings where a fiduciary has acted dishonestly or incompetently. For example, a trustee who fails to distribute assets appropriately or a corporate officer who embezzles funds may be permanently removed from control.

Judicial Dissolution

In partnership disputes, a breach of fiduciary duty may result in the courts dissolving the business entity entirely. Alternatively, there could be a court-ordered buyout of the breaching party’s ownership interest. This is typically a last resort where it is no longer possible for the two sides to move forward together.

Punitive Damages

In rare but egregious cases involving willful misconduct, fraud, or malice, courts may award punitive damages. These go beyond compensation and are intended to punish the wrongdoer and deter similar behavior.

Common Defenses to a Breach of Fiduciary Duty Claim

While breach of fiduciary duty claims can be powerful, they are not always successful. A defendant may raise several legal defenses to challenge the claim, reduce liability, or avoid it altogether. Understanding these defenses is essential whether you’re asserting a breach or facing an allegation.

No Fiduciary Relationship Existed

The most fundamental defense is that no fiduciary relationship existed. Not every relationship gives rise to fiduciary duties. For a claim to succeed, the plaintiff must prove that a legal obligation of trust and loyalty existed. If the relationship was purely contractual or arms-length, this defense may succeed.

Good Faith

A fiduciary can argue that they acted in good faith, meaning they did their best to avoid conflicts of interest and make good decisions. This defense is particularly common among corporate officers or trustees who can show they relied on expert advice, followed proper procedures, or made honest mistakes.

Informed Consent

In some cases, the beneficiary may have known about the alleged conflict of interest and agreed to it. If the fiduciary fully disclosed the facts and obtained informed consent, that disclosure may serve as a defense against a breach claim.

No Harm

Even if a breach occurred, the defendant may argue that the plaintiff suffered no actual harm. Since damages are a required element of a fiduciary duty claim, a lack of financial loss can undermine the case.

Statute of Limitations

Fiduciary duty claims in Georgia are generally subject to a four-year statute of limitations. If the claim was filed too late, the defendant can assert that the case is barred by time.

How An Atlanta Breach Of Fiduciary Duty Attorney Can Help

Throughout this process, the support of an Atlanta breach of fiduciary duty attorney can be invaluable. Our firm can guide you through every step, ensuring you are treated fairly and that your rights are protected. We can provide the following benefits on your behalf:

• Evaluate Your Legal Standing
• Preserve Evidence
• Develop a Legal Strategy
• Draft and File Legal Documents
• Advocate in Court
• Negotiate a Settlement

When you have an attorney on your side, you gain the peace of mind that comes with knowing you are doing everything in your power to get the best possible outcome.

Talk to an Atlanta Breach of Fiduciary Duty Attorney As Soon As Possible

If you believe your rights have been violated, it is crucial that you seek out legal help immediately. Any delay could only lead to additional damages, especially if the person acting on your behalf retains access to your assets or property. In some cases, it may be necessary to secure an emergency injunction to prevent further abuse, so any delay could work against you. An Atlanta breach of fiduciary duty attorney is proud to advocate for those who have suffered a breach of fiduciary duty. To learn how we can assist with your claim, reach out as soon as possible to schedule your free case evaluation.