Fiduciaries are those who have a legal or financial responsibility to other parties. Should they fail in their obligation under the given role, they can be prosecuted for breach of fiduciary duty. If convicted, they can face jail time or pay a hefty sum.
You do your best to uphold a fiduciary duty, but you might find yourself facing a lawsuit for breach of this responsibility. To avoid the penalties or a conviction, get a litigation lawyer in British Columbia to represent you. On that note, Hobbs Giroday Barristers & Solicitors explains some of the defenses the attorney might employ to get you off the hook.
If there is an exemption clause in your trust deed, this might protect you from the breach claims. This exemption clause does, however, not automatically exonerate you.
You still have to act in good faith and honesty for the beneficiaries. Any omission or act that contradicts this might be viewed as reckless and result in conviction.
Consent of Beneficiaries
This defense seeks to prove that the act you committed was consented to by your trust’s beneficiaries. For it to apply, the beneficiaries must be of legal age and have given informed consent. Although it’s not necessary that the beneficiary profited in any way from the fiduciary breach, this could boost your defense.
Business Judgment Rule
This applies the fiduciary duty breach you are accused of concerns a company’s business. For the business judgment rule defense to succeed, you must prove certain elements. Primary examples include acting in good faith and having no personal interests in the matter.
The plaintiff in your case only has to prove a few elements to get you convicted. These include that a fiduciary relationship existed between you and them and you failed in your duty and caused them harm. With a seasoned lawyer on your side to handle your case, however, you can be sure of an acquittal.