Establishing a fiduciary relationship with another party is a large responsibility and should not be taken lightly. In some instances, a fiduciary may inadvertently expose himself to liability by creating a conflict of interest. A common example of when this occurs is when a director or officer of a company agrees to be a personal guarantor of a company. In many cases, lenders will require these personal guaranties in order to make the loan. Agreeing to do so however may expose you to a conflict of interest. If you find yourself accused of such a claim, consider taking the following actions:
- Contact an experienced New York breach of fiduciary duty attorney immediately. Any action that you take now can potentially be used against you later. It is wise to consult with your lawyer before speaking about the claim or agreeing to any settlements.
- Obtain copies of the loan documents and guaranties.
- Create a timeline of the facts in the case.
- Save copies of all communications relating to the alleged breach of fiduciary duty in New York.
In order to defeat a breach of fiduciary duty claim, your attorney will need all of the facts and circumstances surrounding your claim. Fortunately, these claims are not always easy for a plaintiff to win. To learn more about breach of fiduciary actions and your duties resulting from serving in a fiduciary role, contact a New York business litigation attorney today. Call our office at (888) 497-3410 for a consultation.