A fiduciary duty is a legal obligation to have the best interest of another party when making decisions. A lawyer has a fiduciary duty to their client; as does a board member share that same duty to the company’s shareholders. This obligation exists whenever the relationship involves a special dependence on the fiduciary to implement his expertise in acting for the client. The fiduciary must knowingly accept that trust and confidence to exercise his expertise and discretion to act on the client’s behalf. When a legal fiduciary relationship exists, the law prohibits the fiduciary from acting in any manner unfavorable to the interests of the client, including only acting to benefit themselves.
In Sutow v. Family Endowment Partners, two investors sought damages under the Pennsylvania Unfair Trade Practices and Consumer Protection Law (UTPCPL). The Sutows claimed over $20 million in investments that were recommended by their advisors were negligent and were similar to a Ponzi scheme. The firm had failed to disclose personal interests in some of the companies recommended for investment to the Sutows. One company was considered “technically insolvent” by an expert for the Sutows and another company was behind on loan payments. Other recommendations and expectations of those companies showed a lack of due diligence according to an expert for the Sutows. Although the firm argued that brokers do not owe a fiduciary duty on non-discretionary trades, the arbitrator awarded $48.4 million to the Sutows.
Philadelphia Business Attorneys at Sidkoff, Pincus & Green handle Breach of Fiduciary Duty Cases
Philadelphia business attorneys at Sidkoff, Pincus & Green P.C. are experienced in handing all aspects of business law and commercial litigation. Our dedicated team of trial lawyers in Philadelphia assist clients in a wide range of complex litigation matters, including breach of fiduciary duty. Call 215-574-0600 or fill out our online contact form to discuss your breach of fiduciary duty concerns with an experienced Philadelphia trial lawyer today.