In the eyes of the law, fiduciaries owe their clients the highest level of care that one person owes another. Fiduciaries are individuals who have been entrusted to manage or provide an important financial service for an individual. Examples of fiduciaries include financial advisors, pension administrators, bankers, estate executors, and guardian ad items. When fiduciaries breach the duty of care owed to a client, they may be subject to fiduciary liability.
When you’re trying to learn about fiduciary liability and how you can protect yourself, you may be particularly curious about learning more regarding how these types of claims happen. In particular, mismanagement of funds, failure to advise reasonably, or even untrue or misleading statements are common catalysts for a fiduciary liability claim.
What Are Fiduciary Liability Damages Like?
When an individual brings a claim against another individual or a business entity for breach of fiduciary duty, they will be seeking damages proportionate to the amount of financial harm or lost opportunity that he or she has incurred. This may include consequential damages that they have suffered as a result of alleged negligence or misuse and misallocation of funds. According to AXIS, courts can award plaintiffs hundreds of thousands and even millions of dollars in restitution for fiduciary liability claims.