In business, certain parties owe a fiduciary duty toward each other and the company. Unfortunately, a fiduciary may sometimes violate this obligation by placing their personal interests above those of the entity and others to whom the duty was owed. In such cases, the injured party may be entitled to take legal action to recover their damages. Matters involving a breach of fiduciary duty are usually complex and it’s vital to have a committed breach of fiduciary duty lawyer who can help you achieve a favorable outcome.
At Litico Law Group, we understand how a breach of fiduciary duty can impact your business and its operations. We provide experienced representation to clients who are pursuing breach of fiduciary duty claims and offer skillful defense to fiduciaries who have been accused of failing to act in the best interests of the company. With a focus on creating tailored strategies to achieve positive results, our legal team is adept at negotiating and litigating even the most complicated breach of fiduciary duty disputes.
Under Illinois law, a fiduciary duty is a legal obligation that comes with the highest degree of care and loyalty. Importantly, partners, officers, directors, and shareholders all have a fiduciary duty to act in the best interests of the company — failure to do so can result in their being held liable for any economic damages that arise as a result. While there are many ways a fiduciary duty can be breached, these matters typically involve corruption, fraud, bad faith, and acting on improper motives.
Litico Law Group represents clients on a wide variety of breach of fiduciary duty matters, including:
A company and its shareholders may incur substantial economic loss and reputational damage due to a breach of fiduciary duty. Significantly, there are a variety of remedies that may be available to the aggrieved parties under Illinois law, based on the defendant’s conduct and the circumstances of the case. At Litico Law Group, we know the stakes are high when it comes to your company and its bottom line — our business law attorneys strive to secure the results you need to move forward and ensure the longevity of your business.
If a breach of fiduciary duty can be established, a plaintiff may be eligible to recover monetary damages to compensate for loss of business opportunities, lost profits, and the defendant’s unjust enrichment. In cases involving fraud or other egregious conduct, a court might also award punitive damages, which are meant to punish the defendant and discourage others from engaging in similar behavior. Another possible remedy for a fiduciary duty claim is disgorgement, which would require the defendant to return any profits they made as a result of their wrongdoing.
In addition, a court can impose equitable remedies in a breach of fiduciary duty claim. For instance, an injunction would order the fiduciary to stop engaging in the actions or behavior that caused the breach. A judge might also appoint a receiver to oversee all aspects of the company’s operations and ensure the defendant’s compliance with their fiduciary duties.
The business judgment rule may sometimes be asserted in a breach of fiduciary claim to defend against liability. This doctrine presumes that corporate officers and directors make decisions with the honest belief that they are in the best interests of the company. Although it can be challenging to overcome the business judgment rule, a fiduciary can still be held personally liable if it can be demonstrated that they did not act in good faith. The attorneys at Litico Law Group know how to thoroughly investigate a breach of fiduciary duty claim and ensure the bad faith actor is held accountable for their wrongdoing.
The attorneys at Litico Law Group work closely with clients to help ensure a favorable outcome in every case. While we work to settle business conflicts as efficiently and effectively as possible, our legal team will assist you with exploring all available options to reach a resolution, including mediation, arbitration, and negotiation. In the event litigation is required, our attorneys will provide the aggressive advocacy and relentless representation you need in the courtroom.
If a breach of fiduciary duty threatens to harm your company, a diligent Illinois business law attorney can help protect your corporate interests and safeguard your bottom line. Located in Rolling Meadows, Litico Law Group serves the legal needs of small businesses and corporate owners throughout Illinois for a wide variety of business matters. We welcome you to schedule a consultation, contact us online or give us a call at 847-307-5942 to learn how we can help.