When we enter into an agreement, we expect the terms to be completed. However, this is not always the case, leaving contracts unresolved and individuals facing financial difficulties.
Fortunately, several remedies could be available in your case to make things right. Knowing which remedy is right for your situation, though, often requires the experienced guidance of a legal team well-versed in contract disputes. In most cases, we can help you get financial damages to help make you whole, even if the contract is not completed. In other cases, it might be better to have the other party complete the terms of the contract. In fact, it might be best to have the contract undone completely in court. Whichever option you decide, our team will be by your side every step of the way.
For an assessment of your claim with our Georgia breach of contract attorneys, contact Howe & Associates by calling (678) 680-6983.
Can I Get Damages as a Remedy for Breach of Contract in Georgia?
Damages are the most common remedy sought in breach of contract cases. In Georgia, the goal of ordering damages paid is to put the injured party in the position they would have been in had the breach not occurred. Our Georgia breach of contract attorneys can help you determine which types of damages might be available in your case, as several could be claimed. The following are the damages commonly awarded for contract breaches in Georgia:
Compensatory Damages
Compensatory damages are the most fundamental form of remedy in breach-of-contract cases. According to O.C.G.A. § 13-6-2, they are intended to cover the direct and immediate costs associated with the breach.
These damages compensate the non-breaching party for the loss directly resulting from the other party’s failure to fulfill their contractual obligations. This could include reimbursement for goods or services that were paid for but not received, costs incurred in finding a replacement for the goods or services that were part of the breached contract, and other direct financial impacts.
Consequential Damages
Consequential damages, also known as incidental damages, extend beyond the immediate impact of the breach to cover losses that were foreseeable at the time the contract was made. These damages account for the ripple effects of the breach, such as lost profits or opportunities that were dependent on the fulfillment of the contract.
The key aspect of consequential damages is their foreseeability, which is the actual damages inflicted as a direct consequence of the breach and must have been within the contemplation of the parties at the time the contract was formed.
Liquidated Damages
The concept of liquidated damages involves a predetermined amount that the parties agree upon at the time of contract formation, which will serve as compensation in the event of a breach. This is particularly useful in situations where it would be difficult to calculate the exact amount of damages after a breach occurs.
However, for a liquidated damages clause to be enforceable, it must represent a fair estimate of the potential loss and cannot serve as a penalty for the breaching party. This ensures that the liquidated damages are a genuine attempt to quantify the foreseeable loss at the time the contract is made.
Attorneys’ Fees and Court Costs
In many breach of contract cases, the prevailing party might seek to recover attorneys’ fees and court costs incurred in litigating the dispute. Once a contract is rescinded because of a breach, the injured party can pursue all damages allowed under the law, including the expenses of litigation. However, the ability to recover these costs often depends on the specific terms of the contract and the laws applicable to the case.
Punitive Damages
Punitive damages are less common in breach of contract cases because their primary objective is not to compensate the injured party but to punish the breaching party for particularly reprehensible behavior and deter similar conduct in the future.
These damages are considered extraordinary and are reserved for exceptional cases where the breaching party’s conduct goes beyond mere failure to perform contractual obligations. However, punitive damages might be awarded in contract cases where the breach involves actions that are fraudulent, malicious, willfully oppressive, or grossly negligent.
Is Rescission a Remedy for Breach of Contract in Georgia?
Rescission of a contract is fundamentally about undoing or canceling the agreement, thereby releasing all parties from their obligations. Rescission is not merely an act of walking away from a contract but a formal legal process that seeks to restore the parties to their original status as closely as possible.
According to O.C.G.A. § 13-5-7, when rescission is sought, parties should not merely be left in the state that the rescission finds them. Instead, efforts must be made to restore their original status or provide compensation that satisfies the injured party. Essentially, recission undoes the effects of a contract rather than penalize the breaching party.
Further, O.C.G.A. § 13-4-62 states that a party might rescind a contract without the consent of the opposite party on the ground of nonperformance but only when both parties can be returned to their pre-contractual status. This means that mutual reversibility must be a precondition for rescission so that the remedy does not unfairly disadvantage either party.
The process of rescinding a contract typically involves several steps. Initially, the party seeking rescission must effectively communicate their intention to rescind to the other party, usually through a formal notice. This communication is crucial as it marks the initiation of the rescission process.
Subsequently, the parties must take practical steps to reverse the transactions or exchanges that occurred under the contract. This might involve the return of goods, repayment of money, or other actions necessary to restore the parties to their original positions. However, the complexity of this process can vary significantly depending on the nature of the contract and the extent of the parties’ entanglement.
Can Specific Performance Be Ordered as a Remedy for Contract Breach in Georgia?
Specific performance is an equitable remedy that obligates a breaching party to execute their contractual duties as originally agreed upon. As per O.C.G.A. § 23-2-130, the specific performance of a contract will generally be decreed whenever damages recoverable at law would not be an adequate compensation.
The application of specific performance hinges on the principle that certain obligations are so unique that financial compensation alone cannot remedy the breach. Real estate transactions often fall into this category because of the unique nature of the property. As such, specific performance can be particularly relevant in real estate contracts where the benefit of the bargain cannot be fully compensated through monetary damages alone.
Our Georgia Breach of Contract Attorneys Can Help You Get the Remedy You Need
Call Howe & Associates at (678) 680-6983 to get your case reviewed by our Georgia breach of contract lawyers.
When the other party to a contract fails to perform their end of the bargain, it can be difficult to know what damages you should be owed. Fortunately, contract cases are some of the oldest in the law, so methods for determining how damages are calculated have long been established.
Still, calculating damages for breach of contract is highly dependent on the specific facts of the case. In many cases, the damages will be based on the lost value from the contract not being performed. However, you are likely entitled to other forms of damages, like those the other party should have seen coming if they failed in their duties. In some cases, you might have agreed when making the contract as to what the damages should be in the event of a breach. Our team can help you calculate these damages accurately and pursue them through various legal channels.
Call Howe & Associates at (678) 680-6983 to speak with our Georgia corporate attorney and have your case evaluated.
How Do You Determine Damages When Breach of Contract Occurs in Georgia?
In Georgia, it is not uncommon for breaches to occur after contractual agreements are made. In such cases, O.C.G.A. § 13-6-2 outlines how damages are recoverable for a breach of contract. These damages must arise naturally and according to the usual course of things from such a breach. Additionally, damages that the parties contemplated as the probable result of their breach at the time of contract formation are also recoverable.
Generally, the method for computing damages is to assess the difference between the value of the property or service as contracted and its value at the time of the breach. This can be broken down into calculating several types of damages. Fortunately, our Georgia breach of contract lawyers can accurately calculate the full value of your case. Determining the full amount owed in a breach of contract claim requires assessing the following damages:
Calculating Compensatory Damages
These damages are the most direct form of compensation for breach of contract. They cover the actual loss suffered because of the breach, including direct losses and the loss of expected benefits.
Direct losses include the immediate financial impact of the breach, such as payments made for goods or services not received. Calculating these losses usually involves assessing the difference between what was paid or invested under the contract and the actual value received. In cases involving the purchase of goods or services, this might involve comparing the contract price with the market value of what was actually delivered.
Loss of the expected benefit refers to the profit or advantage that would have been realized had the contract been fulfilled as agreed. Calculating this loss often involves complex projections of what could have been and typically requires expert testimony. Essentially, this analysis quantifies the economic advantage the non-breaching party would have gained, which might require a detailed analysis of certain market conditions, business forecasts, and the specific terms of the contract.
Calculating Consequential Damages
Consequential damages are typically awarded for losses that the breaching party should have foreseen as a likely result of their breach at the time the contract was made. According to O.C.G.A. § 13-6-8, these damages are recoverable only to the extent that they can be traced solely to the breach of contract and are capable of exact calculation.
Consequential damages tend to arise from special circumstances that the breaching party knew or should have known at the time the contract was made. These conditions can include lost profits, loss of business opportunities, and other forms of economic harm that are more indirect than direct damages but nonetheless foreseeable and related to the breach.
To calculate consequential damages, the non-breaching party must establish foreseeability by demonstrating that the damages were predictable at the time the contract was executed. This involves showing that the breaching party had reason to know of the special circumstances that would lead to such damages.
Furthermore, the non-breaching party must prove causation, which means there must be a clear and direct link between the breach and the consequential damages claimed. This requires demonstrating that the damages were a direct consequence of the breach and not attributed to some external factors.
Finally, consequential damages must be capable of exact computation. This often necessitates detailed financial records, expert testimony, and rigorous analysis to quantify the losses accurately.
Calculating Liquidated Damages
Contracts often include clauses that predetermine the amount of damages payable in the event of a breach. These are known as liquidated damages. Sometimes, a contract breach inflicts such a peculiar or hard-to-quantify loss that conventional damages fall short of providing just compensation.
To avoid future legal problems, the parties agree on these liquidated damages, which are basically a pre-agreed sum specified within the contract itself, intended to serve as compensation in the event of a breach. However, A liquidated damages clause can be enforced only if it meets two primary criteria.
The first standard acknowledges that certain contractual breaches result in losses that cannot be precisely quantified using standard measures of damages because of their unique nature. This is often the case in industries where the value of performance is highly specific to the parties involved or where the breach affects intangible assets like reputation or market position.
The second principle serves as a safeguard against punitive stipulations that might be disguised as liquidated damages. The agreed-upon sum must not only approximate the anticipated loss but also bear a reasonable relation to it. This prevents the use of liquidated damages clauses as disguised penalties for breach, ensuring they remain compensatory in nature.
Unlike other forms of damages, liquidated damages are not calculated post-breach. Instead, the amount is determined at the contract’s formation based on the parties’ estimation of potential loss. This means the process involves a forward-looking assessment, weighing factors such as the nature of the agreement, the likely impact of a breach on both parties and industry standards for similar losses.
How Can an Attorney Help My Breach of Contract Case in Georgia?
Our attorneys can support you in a number of ways that could make all the difference in your case. Not all agreements are enforceable under Georgia law, so it is best to have our attorneys assess the terms, conditions, and formation of your contract to determine its enforceability. Additionally, there are different types of breaches that can occur, ranging from minor to material. Our team can help identify the nature of the breach and its implications for the case.
When a breach of contract case is filed, it is not unusual for the other party to file counterclaims against you. In order to prepare an effective defense, our firm can evaluate the validity and strength of any counterclaims and develop a strategy to defend against them, whether through negotiation or courtroom defenses.
Our Georgia Contract Breach Lawyers are Ready to Help You Get the Damages You Deserve
For a case review with our Georgia breach of contract lawyers, contact Howe & Associates today at (678) 680-6983.
Most people understand that Georgia’s court system is split between civil and criminal matters. However, many might not know in which court a breach of contract case will be heard.
While breaching a contract can be shocking, it does not usually rise to the level of a crime in Georgia. Thus, breach of contract cases will be heard in civil court, which results in financial compensation rather than imprisonment. Still, proving you lived up to your end of the deal can be challenging with the help of our lawyers. Our firm knows the nuances of Georgia’s civil court system and the best strategies to get the remedy you need to make things right. We can help determine which solution fits your circumstances and how the civil process will impact your case.
For a review of your case with our Georgia breach of contract lawyers, contact Howe & Associates by calling (678) 680-6983.
Are Breach of Contract Cases Civil or Criminal in Georgia?
In Georgia, a breach of contract is primarily considered a civil matter. Civil law deals with disputes between individuals or entities, typically over rights, obligations, and liabilities under contractual and legal duties. In contrast, criminal law addresses offenses against the state or society at large, with penalties including fines payable to the state and imprisonment.
Civil cases, like those involving a breach of contract, are initiated by the aggrieved party, known as the plaintiff. This plaintiff seeks to obtain a remedy for the harm caused by the breach. The defendant is the party alleged to have breached the contract.
The primary objective in a civil breach of contract case is to make the injured party “whole” again, typically through monetary compensation or some other solution. Thus, defendants are not found “guilty” in civil cases like they are in criminal ones, but are considered “liable.”
However, certain circumstances surrounding the breach might give rise to criminal charges. For example, if a party enters into a contract with the intent to defraud the other party, this could lead to criminal fraud charges. Other situations could even be considered theft. These charges would be separate from the civil breach of contract claim and would be prosecuted by the state rather than initiated by the aggrieved party. That means you could still file a civil lawsuit for breach of contract independent of the criminal prosecution.
How Are Defendants Punished in Georgia Civil Breach of Contract Cases?
As mentioned, defendants are not punished in a criminal sense when they lose a civil case. Instead, they are usually made to pay monetary damages. However, our Georgia breach of contract lawyers can help you explore other options that might better solve your issues. In some cases, you might want the terms of the contract to be completed or the contract to be undone altogether. The following are typical remedies the court can order defendants to complete in civil contract cases:
Payment of Damages
Damages are the most common remedy in breach of contract cases. “Damages” are monetary compensation designed to put the plaintiff in the position they would have been in had the breach not occurred. However, you can usually claim several forms of damages.
For instance, compensatory damages are given to cover the direct losses and costs incurred by the non-breaching party. This can include lost profits, costs of substitute performance, and other financial losses directly related to the breach.
Consequential damages, on the other hand, compensate for additional losses that are not direct outcomes of the breach but are reasonably foreseeable consequences of the breach when the contract was made. This means that when the contract was made, the defendant could reasonably expect that these damages would occur in the event of their breach.
Liquidated damages are provisions included in some contracts that specify the amount of damages to be paid in the event of a breach. However, these are only enforceable if they are a reasonable estimate of the actual damages and are not punitive in nature.
In cases where a breach occurred but did not result in significant financial loss, nominal damages can be awarded. However, these damages are given to recognize the breach legally without significant compensation. In some cases, defendants are only ordered to pay one dollar in nominal compensation.
Specific Performance
Specific performance is an order from a court that mandates the breaching party to perform a specific act, usually what is stipulated in a contract. It is an equitable remedy that compels the defendant rather than compensating the plaintiff with money, as monetary damages are inadequate to remedy the harm caused by the breach.
In Georgia, there are several conditions that must be fulfilled before a court can grant specific performance.
First, the subject of the contract must be unique. For instance, real estate is a classic example of a unique subject matter, as each parcel of land is inherently distinct from one another.
Also, the performance must be feasible and enforceable without requiring excessive supervision. This implies that the court must have the ability to enforce the order effectively.
Moreover, both parties involved in the contract must be able to request specific performance at the time the contract was made. This is known as “mutuality of remedy.”
Lastly, the party requesting specific performance must come to court with “clean hands,” meaning that they have acted fairly and honestly in all matters related to the contract.
Still, Georgia courts are often cautious in granting this remedy because of its potentially burdensome nature. Additionally, vague or ambiguous contracts might not be suitable for specific performance since the court cannot determine with certainty what was agreed upon.
Rescission
Rescission is a remedy that aims to bring about fairness and restore the parties involved to the state they were in before the contract was executed. This implies that any benefits conferred under the contract should be returned or, if that is not possible, compensated for.
Rescission can be based on several grounds, each reflecting situations where continuing the contract would result in unfairness or injustice.
Fraud is one of the most common grounds for rescission. If one party has been fraudulently induced into entering into the contract, they can seek rescission upon discovering the fraud.
Another ground for rescission is non-performance. If one party fails to perform their contractual obligations, the other party is entitled to rescind the contract without the opposite party’s consent. For instance, if a contractor fails to complete a construction project as promised, the property owner might seek rescission of the contract.
Rescission can also be granted if there is a mutual mistake regarding a fundamental fact that goes to the essence of the contract. For example, if two parties enter into a contract for the sale of a property, and it later transpires that the property was not owned by the seller at the time of the agreement, the contract can be rescinded on the grounds of the mistake.
Our Georgia Breach of Contract Attorneys Can Help You Find a Solution that Meets Your Needs
Call Howe & Associates at (678) 680-6983 to get a case analysis with our Georgia breach of contract attorneys.
We are often in positions where we rely on others to act in our best interests, often in a legal and economic sense. Unfortunately, not everyone fulfills their duties, and you may need an attorney to help you file a lawsuit, as proving a breach of fiduciary duty can be difficult.
To prove a breach of fiduciary duty, you must first establish that the defendant was a fiduciary, meaning they were legally entrusted to protect your best interests. You next have to show how they violated this duty. Since many people who breach this duty try to cover their tracks, finding evidence of wrongdoing can be challenging. Some common examples of a breach of fiduciary include but are not limited to, conflicts of interest, self-dealing, and misappropriation of money or assets. Lastly, you must prove the damages you or your company suffered.
For a private review of your case, call our Georgia lawyers for a breach of fiduciary duty at Howe & Associates at (678) 680-6983.
What is a Breach of Fiduciary Duty in Georgia?
A fiduciary duty exists when someone has a legal obligation to act in the best interests of someone else. This duty often reflects an economic interest. The person who owes this duty is referred to as the fiduciary, and the person to whom the duty is owed is the principal or the beneficiary. A breach of fiduciary duties might occur when the fiduciary acts in a way that is harmful to the beneficiary, often economically.
Fiduciary duties are often imposed through business arrangements and contracts. For example, you might appoint or hire a fiduciary to manage your estate and finances. Depending on the nature of the job, a manager hired by an employer often owes a fiduciary duty to their employer and the business they work for. Corporate officers are typically fiduciaries, too.
A breach of fiduciary duty involves something the fiduciary does that hurts the beneficiary’s interests. For example, reckless spending or gross mismanagement that leads to a loss of profit or economic penalties might be considered a breach of fiduciary duty.
What exactly does a breach of fiduciary duty look like? In some cases, this is an intentional breach, such as engaging in some kind of fraud to swindle the beneficiary out of money or profits. This might be as simple as skimming money from business accounts to more complex schemes of fraud and deception. In others, it could be self-dealing or a conflict of interest that causes them to look out for their own interests ahead of their principal’s interests.
A breach of fiduciary duty is an extremely serious matter, as beneficiaries and principals are often left to clean up complex financial messes left by the fiduciary.
Proving a violation of some fiduciary duty can be tricky. Exactly how you should prove your claims depends on how the breach happened and the role of the fiduciary. Many wrongdoers take extra steps to cover their tracks, making it harder to find evidence. Our Georgia lawyers for a breach of fiduciary duty has handled these kinds of claims before and knows where to look to uncover evidence.
Proving a Breach of Fiduciary Duty Occurred in Georgia
Proving that a breach occurred is no simple task. Many fiduciaries who breach their duty go to great lengths to cover their tracks, erasing or hiding evidence. Often, beneficiaries do not realize there has been a breach of fiduciary duty for a long time. A fiduciary might be cheating you for years before you realize something is wrong.
Evidence to prove a breach often comes from business and financial records. It is difficult for a fiduciary to do anything with your accounts or assets without leaving some paper trail. Transactions, withdrawals, deposits, transfers, and almost anything else that happens to your money, accounts, and assets are recorded somewhere. If the defendant is an employee or agent of yours, our attorneys should comb through your business records to see if we can find clues as to what happened. We should also review records maintained by your banks and other financial institutions that might have been affected or involved.
Many breaches of fiduciary duty involve a breach of contract. The fiduciary might have been someone you had a contract with, and they failed to live up to the terms and conditions of the deal. We need the contract itself as evidence. Sometimes, the defendant’s actions are so clearly a contract violation that little other evidence is needed.
The Elements of Fiduciary Duty in a Georgia Case
Understanding exactly what a fiduciary duty entails requires an understanding of the elements of a fiduciary duty. First, there is the duty of care. This is a general duty that involves a fiduciary making sure they are informed and prepared enough to handle their job.
Next is the duty of loyalty. This requires the fiduciary to always put the interests and well-being of the beneficiaries first. If the fiduciary’s interests conflict with the beneficiaries’ interests, the fiduciary should remove themselves from the situation so a different fiduciary can step in.
The duty of good faith requires the fiduciary to always act within the law when doing their job to help the beneficiaries. Even if the fiduciary can further the interests of the beneficiaries through illegal means, they are forbidden from doing so.
The duty of prudence requires the fiduciary to act to the best of their abilities at all times and make decisions carefully and thoughtfully. Hasty actions that have not been thought through might be a violation of a fiduciary’s duty if the beneficiaries’ interests are harmed in the process.
The duty of disclosure requires the fiduciary to be honest, candid, and forthcoming with beneficiaries. If things are going bad, the fiduciary must inform the beneficiaries. If things are going great, tell the beneficiaries. If you are kept in the dark and suddenly your assets or accounts take a big hit, you might be able to sue.
Call Our Georgia Breach of Fiduciary Duty Attorneys for Help
For a confidential assessment of your case, call our Atlanta lawyers for a breach of fiduciary duty at Howe & Associates at (678) 680-6983.
It is natural to trust your partner to act in the best interests of the business you both intend to succeed in. However, some partners abuse that trust and violate their fiduciary duties for personal gain.
Fortunately, you can file a lawsuit against a partner for breach of fiduciary duty. Partners in a business owe each other certain duties, chief among them the duty to act in the best interests of the partnership and not engage in self-dealing or prioritize personal gains over the partnership’s welfare. When they do, our team can help you hold them liable. We can determine the extent of the damages caused by the breach and which remedies will serve to correct the situation. We can also gather and organize the often numerous pieces of evidence you need to prove that a fiduciary relationship existed and your partner’s breach resulted in your losses.
Call Howe & Associates at (678) 680-6983 to get your case reviewed by our Atlanta breach of fiduciary duty lawyers.
Can You File a Lawsuit Against a Partner for Breach of Their Fiduciary Duty in Georgia?
At its core, fiduciary duty in a business partnership encompasses obligations of loyalty, care, and good faith. This means partners must prioritize the partnership’s interests above their own personal gains, make decisions with due care and diligence, and act honestly in their dealings with each other and the partnership.
Under O.C.G.A. § 14-9-108(b)(1), aggrieved partners have the right to file a lawsuit if they believe a breach of fiduciary duty has occurred. A breach of fiduciary duty in a partnership occurs when one of the partners fails to fulfill their obligations and responsibilities, resulting in actions that go against the interests of the partnership or other partners involved.
This kind of breach can take many forms, such as self-dealing, where a partner prioritizes their own interests over the partnership’s; misappropriation of partnership opportunities, where a partner takes advantage of opportunities that rightfully belong to the partnership; or neglect of duties, where a partner fails to fulfill their duties and responsibilities, leading to harm or loss to the partnership.
In any of these cases, a breach can have serious consequences for the partnership as a whole, as well as for individual partners. That is why our Georgia breach of fiduciary duty attorneys are here to help you get control of the situation and determine how to remedy the violation. Deceptive partners have ways of concealing their breaching conduct. Fortunately, our firm knows the best methods of bringing your partner’s breach of their fiduciary duties to light.
Examples of Breach of Fiduciary Duty by a Business Partner in Georgia
Recognizing the signs of a breach in your partner’s fiduciary duties is crucial for those who wish to protect their investments and the integrity of their business ventures. A breach can take many different forms, but each tends to leave a trail. The following are signs that your partner is not living up to the duties they are required to follow under Georgia law:
Self-Dealing
One of the most glaring signs of a breach of fiduciary duty is self-dealing, where a partner prioritizes their own interests over those of the partnership. This could mean diverting business opportunities to another business they own or making decisions that disproportionately benefit them at the expense of the partnership.
Misappropriation of Partnership Assets
Misappropriation involves using partnership assets for personal gain or for purposes unrelated to the partnership’s objectives. Evidence of misappropriation could include unauthorized withdrawals, personal use of partnership funds, or redirecting partnership resources.
Neglect of Duties
A partner’s failure to fulfill their responsibilities, leading to harm or potential harm to the partnership, signals a breach of the duty of care. This neglect could be because of inaction, incompetence, or indifference, resulting in financial losses or missed opportunities for the partnership.
Conflict of Interest
Engaging in activities that create a conflict between a partner’s personal interests and those of the partnership can also constitute a breach. This includes entering into transactions where the partner has a competing interest or can gain personally outside of their share in the partnership profits.
Lack of Transparency
A lack of transparency in decision-making processes can also indicate a breach of a partner’s duties. This includes withholding information or deceiving partners about the partnership’s financial status or business operations.
Remedies for When a Partner Breaches a Fiduciary Duty in Georgia
Fortunately for partners whose trust has been violated, a number of remedies are available that can help undo the damage to the business. The following are common remedies ordered in breach of fiduciary duty lawsuits in Georgia:
Monetary Damages
One of the primary remedies for a breach of fiduciary duty in a Georgia lawsuit is the awarding of monetary damages, according to O.C.G.A. § 29-5-93(a). The purpose of such compensation is to restore the aggrieved party to the financial position they would have been in had the breach not occurred.
In addition to recovering actual losses incurred from the breach, monetary damages can also include potential profits that were lost as a direct result of the fiduciary’s actions. This means that if a fiduciary has breached their duty, their actions might have caused the aggrieved party to miss out on future business opportunities or profits that they would have otherwise received had the breach not occurred.
Constructive Trusts
Under O.C.G.A. § 29-5-93(b), the courts have the authority to impose constructive trusts on assets that have been misappropriated or misapplied by a fiduciary. This remedy effectively transfers the ownership of the assets back to those rightfully entitled to them, providing a mechanism for recovery that goes beyond mere compensation.
Accounting and Injunctions
In cases where there is concern about ongoing breaches or the potential for further harm, the court might order a full accounting of the fiduciary’s actions. This process involves a detailed review of financial records and transactions to identify any discrepancies or instances of mismanagement.
Additionally, injunctions can be sought to prevent the fiduciary from continuing harmful activities or disposing of assets pending the resolution of the case.
Disgorgement of Profits
Disgorgement is another powerful remedy available, requiring the fiduciary to surrender any profits gained through their breach of duty. This not only serves to compensate the aggrieved party but also acts as a deterrent against future breaches, emphasizing the principle that fiduciaries should not benefit from their wrongful actions.
Rescission of Contracts
In situations where the breach involves contracts or agreements entered into under circumstances that violated fiduciary duties, rescission might be an appropriate remedy. This action nullifies the contracts in question, restoring the parties to their positions prior to the breach and preventing the fiduciary from benefiting from contracts procured through their misconduct.
Our Georgia Lawyers Can Help You Hold Your Partner Liable for Breaching Their Fiduciary Duty
For an assessment of your claim with our Columbus, GA corporate matters attorneys, contact Howe & Associates by calling (678) 680-6983.
When an individual or entity holds a position of trust, they are expected to act in good faith and provide the highest level of care towards the person or entity they represent. When that duty and trust is broken, you can take the breaching party to court and sue them for breach of fiduciary duty – but only if you can meet the legal requirements for this kind of claim.
Fortunately, with the help of our skilled legal team, you can prove how the other party breached their duty. Breach of fiduciary duty can take many forms, like when business partners and company officers try to gain an unfair advantage at the business’s expense or commit outright fraud. However, it is challenging to gain from these violations of trust without leaving a trail. We will help you obtain business records, emails, bank statements, and any other evidence we can find to prove the breach and get the compensation you deserve. With our support, you can limit the damage done to your business reputation and determine a remedy that best repairs the breach.
For a case review with our Atlanta breach of fiduciary duty lawyers, contact Howe & Associates today at (678) 680-6983.
How Can I Prove a Breach of Fiduciary Duty Claim in Georgia?
A fiduciary relationship is a bond of trust and confidence between two parties, wherein one party, the fiduciary, acts in the best interest of the other, the principal. A breach of this duty can unravel the fabric of trust that binds business relationships, leading to significant legal and financial repercussions. While these cases are complex, our Georgia breach of fiduciary duty attorneys can help you prove your claim by showing the following elements:
Existence of a Fiduciary Relationship
At the heart of any claim for breach of fiduciary duty lies the fundamental question of whether a fiduciary relationship existed. In Georgia, this relationship is not confined to specific labels or formalities but hinges on the nature of the interaction between the parties.
Fiduciary duties often arise in contexts where one party places trust in another to act in their best interest, such as in the relationships between attorneys and clients, trustees and beneficiaries, or corporate officers and shareholders.
Breach of Fiduciary Duties
Once a fiduciary relationship is established, attention turns to whether the fiduciary has lived up to their obligations. A breach occurs when the fiduciary acts contrary to the interests of the principal, whether through negligence, malfeasance, or failure to act when required.
While O.C.G.A. § 53-7-54(a) does not provide an exhaustive list of actions constituting a breach, it offers guidance through its provisions on misapplication of assets as a breach of fiduciary duty, thereby setting the grounds for the interpretation of breaches in other fiduciary contexts.
Some concrete examples of breaches include theft, dishonest accounting, self-dealing, incompetence, conflict of interest, conversion, and fraud. These instances underscore the myriad ways in which a fiduciary’s actions, or lack thereof, can violate the trust placed in them by the principal.
Damages Caused by the Breach
The final cornerstone of proving a breach of fiduciary duty claim is demonstrating the damages resulting from the breach. Proving these damages involves showing an actual injury, typically economic in nature, directly attributable to the fiduciary’s breach. This requirement ensures that claims are grounded in tangible losses rather than hypothetical grievances between the parties.
O.C.G.A. § 53-7-54(b) provides for remedies in cases where estate assets are misapplied because of a breach of fiduciary duty, including the imposition of a trust on the misapplied assets to benefit those harmed by the breach. The purpose of awarding damages in breach of fiduciary duty cases is to make the aggrieved party whole, restoring them to the position they would have been in had the breach not occurred.
Evidence that Can Help Prove Your Breach of Fiduciary Duty in Georgia
Proving a breach in your case often requires a meticulous collection of evidence by our firm. The following pieces of evidence will be instrumental in proving your claim in Georgia:
Contractual Agreements and Legal Documents
Fiduciary relationships often have a solid foundation in the form of formal agreements or legal documents that lay out the specific duties and expectations of all parties involved. These agreements can take various forms, such as partnership agreements, corporate bylaws, trust documents, or even employment contracts.
These documents serve as a roadmap for the fiduciary relationship, providing clear guidelines and expectations for each party to follow. As such, they are usually the best place to start when building your case.
Financial Records and Transactions
Financial misconduct can take many forms, such as misappropriating funds, self-dealing activities, or unauthorized transactions. To uncover such activities, it becomes essential to trace the financial records, including bank statements, ledgers, invoices, and receipts. These documents can provide a clear trail of evidence pointing toward the irregularities and deviations from the standard protocol.
Thus, financial records become important in identifying the breach and holding the responsible party accountable. By relying on the documentation and analyzing it thoroughly, our team can take the appropriate actions to mitigate the financial damage caused by the breach.
Communications
Emails, text messages, letters, and even notes from meetings can serve as crucial evidence of a breach. They might reveal the fiduciary’s intentions, acknowledge their awareness of certain duties, or document discussions and decisions that contravene the fiduciary’s obligations.
In an era of ubiquitous digital communication, these pieces of evidence are often readily available and can be highly revealing.
Witness Testimony
Gaining firsthand accounts from individuals who were directly involved in or had knowledge of the fiduciary’s actions or the circumstances surrounding the alleged breach can be extremely helpful in establishing the breach. Witnesses can include employees, co-trustees, business partners, or other relevant parties.
Their testimony often provides valuable insights into the existence of a fiduciary relationship, elaborates on the actions that led to the breach, and attests to the damages incurred as a result of the breach.
Expert Analysis
In cases where the breach involves complex financial transactions, valuation issues, or intricate legal questions, the testimony of expert witnesses is usually necessary. Financial analysts, forensic accountants, and other experts can provide an authoritative assessment of the fiduciary’s conduct, helping the court and jury understand whether the fiduciary’s actions deviated from the standards expected in their role.
Digital Footprints
In today’s digital age, electronic evidence extends beyond emails and texts. Social media posts, digital calendars, and even location data can offer insights into the fiduciary’s behavior and actions.
For instance, a fiduciary’s social media post about a lavish purchase or trip could contradict claims of financial hardship under diligent management of trust assets.
Previous Judgments and Disciplinary Actions
If the fiduciary has faced legal judgments or disciplinary actions for similar misconduct in the past, this history can bolster a current claim of breach. Such information can demonstrate a pattern of behavior that supports allegations of a breach in your case.
Our Georgia Attorneys Are Ready to Help You Prove Your Breach of Fiduciary Duty Case
Call Howe & Associates at (678) 680-6983 to speak with our Georgia breach of fiduciary duty attorneys and have your case evaluated.
Today we’re going to talk about the enforcement of judgement and how our law firm enforce judgement. Judgement serves as a lean against all of the property of the judgement debts – that means that all of the real estate as well as all of the personal property is attached by the judgement. In Georgia, which is a very good state for creditors, we can attached all of their property. We deal with the sheriff’s office to make levy demands. If needed, we even carry that levy process all the way to a full levy where we are levying all of the property and then sell that in auction. There are ways to enforce discovery, we like to bring the debtors in for a post judgement deposition. We like to serve them with post judgement discovery, we’re looking for garnish-able sources and assets to attach. There are lots of sources for garnishment in Georgia, accounts receivables, bank accounts can be garnish. There’s a long list of things that you can garnish in Georgia and enforce that garnishment statue as well as the levy. We take a very proactive approach whenever we have a judgement to uncover and attach assets to satisfy the debt.