A fiduciary duty is a legal term that represents the relationship between two parties and the obligation of one to act in the interest of another. Knowing your fiduciary duties to others and under what circumstances you could breach that duty is important for any of your current and future business transactions. Establishing proper paperwork and documents within your business is vital to ensure that you or your business does not breach a fiduciary duty to another.

Entrepreneurship in San Francisco can be exciting and rewarding, but keeping up with all complex laws can be overwhelming. At Coepio Legal we are business lawyers who help business owners prepare the appropriate legal documents and understand their legal responsibilities and rights regarding fiduciary law.

Fiduciary Duty

A fiduciary duty is created in business when a specific trust, reliance, or confidence is placed in the fiduciary by a client or principal. Typically, there is a binding legal agreement and the fiduciary must then act on his/her client’s behalf. If a business owner, who has a fiduciary duty, acts against the best interests of the client or principal, or solely in his or her own self-interest, there may be grounds for legal recourse.

Examples of Fiduciary Breach

If you are a business owner, there is a good chance that you act in a fiduciary capacity toward another. Ensuring that your business contracts are legally solid is what we do at Coepio Legal. Our experienced business law attorneys can help you review current contracts, create new ones if necessary, and prevent any potential legal liability.

Wondering if you are a fiduciary? If you hold funds in trust, have access to clients’ funds, represent your business in marketing, or disclose fundamental information in contracts, you are likely a fiduciary. Some examples of a fiduciary breach are as follows:

• Failure by a fiduciary to handle a client’s funds legally and appropriately and within contractual obligations
• Failure by a fiduciary to disclose legally required information
• Theft or misappropriation of funds or property
• Misrepresentation by a fiduciary regarding documents, monies, contracts, funds, or other obligations owed
• Misuse by a fiduciary for personal gain within a position of influence

Ultimately, a fiduciary has the responsibility to act in good faith with full disclosure and loyalty to the principal or client. If the fiduciary breaches the duty to the client in any way and this directly causes the client to suffer damages, there could be potential for legal recourse.

Our experienced business lawyers can help ensure that you do not breach your fiduciary duty or suffer from the breach of another. We will help you create the correct contracts and documents and review any existing documents to help you avoid stressful and costly disagreement with a client or other business owners.

Contact Coepio Legal

Oftentimes your contracts with clients and other business owners will create a fiduciary duty. Determining if you have a fiduciary duty can be a complex legal issue. An experienced business law attorney can help you determine if your contracts work in your best interest, and help you create new ones that protect you and your business. Coepio Legal specializes in business legal advice for startups and small businesses, especially in the competitive San Francisco market. Entrepreneurship is an exciting and challenging endeavor—we can help you succeed with our expertise at your side. Call our office today at 415-323-6212 and let’s get started.