North Central Florida Business Law Firm Focuses on Partnership Disputes
Florida Business Attorneys Knowledgeable About Breach of Fiduciary Duty
Most partnerships are based on a signed agreement that sets forth the terms and conditions of the partnership, but some partnerships are established through an oral agreement, as a written agreement is not a legal requirement. If there is a written agreement, it will likely determine the partners’ rights, responsibilities, and terms for withdrawal or dissolution.
When partnership disputes occur, business partners need an attorney to protect their interests and ensure a fair resolution. Under Florida law, a partnership agreement may not restrict a partner’s access to business books and records, eliminate the fiduciary duties of loyalty or care, or take away the obligation of good faith and fair dealing.
Fiduciary Duty
Florida law expressly imposes a fiduciary duty in a variety of relationships, including attorney/client, corporate directors to shareholders, guardian to ward, and partner to partner. A fiduciary is a person holding the character of a trustee, and having duties involving good faith, trust, special confidence, and candor towards another.
Partners in a partnership are fiduciaries to one another, meaning they owe each other, and their business, certain basic duties: trust, loyalty, and confidence. The most basic fiduciary duty is the duty of loyalty, which obligates the fiduciary to put the interests of the beneficiary first, before his own interests, and to avoid exploiting the relationship for personal gain.
Breach of Fiduciary Duty
A breach of fiduciary duty occurs when a partner profits or acquires another type of benefit as a result of one of the following:
- Having a conflict of interest
- Having a conflict of duty
- Taking advantage of being a fiduciary
General partners have sole control of the business of the partnership, are the only ones who can act on its behalf, and must not exceed the authority granted to them in the partnership agreement.
If you are in the middle of a partnership dispute, contact north central Florida law firm Dean and Dean, LLP online or call (352) 515-9221 and schedule your initial consultation today. We can help.
