Fort Lauderdale Breach of Fiduciary Duty Attorney

A partner who controls the books, a manager who steers company money somewhere it was never supposed to go, a majority owner who freezes you out of decisions: if you are weighing what to do about someone who owed you loyalty and did not deliver it, you are asking the right question. The Andrew M. Schwartz Legal Team handles business and real estate litigation for owners, investors, and families across Fort Lauderdale, Broward County, and Palm Beach County, and a Fort Lauderdale breach of fiduciary duty attorney from our firm can tell you quickly whether what happened to you is a legal claim and what it might be worth pursuing.

Fiduciary duty is a higher standard than ordinary contract performance. People who manage or control a business for the benefit of others owe those others honesty, loyalty, and careful handling of company assets. When a partner, LLC manager, officer, or controlling shareholder puts personal gain ahead of the company or its other owners, the law gives the injured party tools that a simple breach-of-contract suit does not.

The hardest part is usually not proving that something feels wrong. It is tracing where money went, showing what the person controlling the company knew and did, and acting fast enough to stop assets from disappearing while the case is pending. That is where this practice earns its keep.

Why Choose the Andrew M. Schwartz Legal Team for a Fiduciary Duty Dispute

The Andrew M. Schwartz Legal Team represents business owners, investors, and families in some of South Florida’s most contested business and real estate disputes, serving clients in Fort Lauderdale, Boca Raton, West Palm Beach, and throughout Broward and Palm Beach Counties. Andrew M. Schwartz has spent 37 years in litigation, and his career has been built around complex contract disputes, business divorces, and conflicts between partners, LLC members, and shareholders. That is the exact terrain where fiduciary duty claims arise.

Mr. Schwartz was admitted to The Florida Bar in 1989 and earned his undergraduate degree from Emory University and his law degree from the University of Miami. He is joined by Senior Counsel Sundeep Nath, a Northwestern-trained litigator with years of experience handling business and real estate cases in both state and federal courts. That matters in a region where Broward and Palm Beach disputes can land in state circuit court or the federal Southern District of Florida depending on the parties and claims.

The firm practices as a true legal team, meaning everyone working on your matter knows the file and can answer when you call. A strict 24 hour return call policy applies when the attorneys are in court. The firm is also experienced in mediation and arbitration as well as courtroom litigation, and it looks for the resolution that fits a client’s goals and budget rather than stretching a case out for its own sake.

Recent results reflect the firm’s trial work. After a 5-day bench trial in Broward County Circuit Court, the firm obtained a 32-page final judgment awarding its client specific performance of a commercial real estate contract. A significant share of the firm’s work also comes by referral from other attorneys, including out of state counsel whose clients have disputes in Florida.

Situations That Give Rise to Fiduciary Duty Claims

• Diverted Company Funds: A partner or manager pays personal expenses from company accounts, routes revenue to a side entity, or commingles business money with personal money. These cases often involve claims for an accounting and recovery of the funds.
• Self-Dealing Transactions: A controlling owner causes the company to buy from, sell to, or lease from a business the owner secretly holds, usually at terms that favor the insider and drain value from everyone else.
• Freeze-Outs of Minority Owners: Majority members or shareholders cut a minority owner off from information, distributions, or management, then wait for the minority holder to give up or sell cheap.
• Usurped Business Opportunities: A partner takes a deal, client, or property that belonged to the company and keeps it for personal benefit, or competes against the company while still an insider.
• Unpaid or Withheld Distributions: Profits are retained or redirected so that some owners are paid and others are not, contrary to the operating agreement or shareholder agreement.
• Waste and Mismanagement: Assets are spent, encumbered, or given away in ways that injure the company, which can also support a petition for judicial dissolution when assets are being misappropriated or wasted.
• Family Business Betrayals: Siblings, parents, children, or in-laws who co-own a business and disagree over control or compensation, where the personal relationship makes the financial conduct harder to confront.
• Real Estate Ventures: A co-investor or managing member mishandles rents, sale proceeds, or capital contributions in a jointly held property.

What to Do Now if You Suspect a Partner Is Breaching Their Duty

Start by securing the paper. Gather the operating agreement, shareholder agreement, or partnership agreement, along with tax returns, K-1s, bank statements, financial reports, and any emails or texts that touch on money, authority, or decisions. If you still have access to accounting software or shared drives, preserve what you can lawfully see. Do not take, alter, or delete anything you are not authorized to access; that can hurt your own case.

Next, pay attention to the clock. The limitations period depends on how the claim is framed. A claim founded on a written instrument carries a five-year period under Florida Statutes 95.11(2)(b). A claim not founded on a written instrument carries four years, and fraud claims run four years from discovery with a 12-year outer cap. Because the label on your claim changes the deadline, do not wait to find out which one applies.

Be careful about confrontation. Accusing a partner before you know the facts often prompts them to move money, delete records, or lock you out. If assets are at risk, the better course is often to move for emergency relief, because courts can issue temporary injunctions to stop funds from being moved or spent while the case proceeds.

On where the case is heard: Fort Lauderdale cases are typically filed in the Circuit Court of the Seventeenth Judicial Circuit, which sits in and for Broward County, at the Central Judicial Complex in Fort Lauderdale. Claims valued above the county court limit belong in circuit court. The Seventeenth Circuit also maintains a complex business division that handles large business litigation and dissolutions of certain business entities, and a case can be directed there through the filing procedure set out in the circuit’s administrative order. If a dispute involves a Palm Beach County company or property, the Fifteenth Judicial Circuit in and for Palm Beach County would be the venue. Some matters belong in federal court instead; the Southern District of Florida holds court in Fort Lauderdale and West Palm Beach.

Finally, talk to a lawyer before you sign anything. Buyout offers, resignation letters, and “standstill” agreements proposed by the other side can quietly waive claims. A Fort Lauderdale business litigation attorney can read the operating agreement first, because deadlock, buyout, and dispute-resolution clauses often decide what options you have.

How Fiduciary Duty Claims Connect to Dissolution, Buyouts, and Accountings

A fiduciary duty claim rarely travels alone. Depending on the facts, it may be paired with a demand for an accounting, claims for conversion or fraud, and a request that the court step in to protect the company.

For LLCs, Florida law lets a member or manager seek judicial dissolution on several grounds, including that assets are being misappropriated or wasted to the company’s injury, that controlling members or managers have acted or are expected to act illegally or fraudulently, and that the owners are deadlocked with irreparable injury threatened. In those proceedings the court may appoint a receiver or custodian after a hearing, or order a purchase of the petitioning member’s interest instead of dissolving the company.

For corporations, a shareholder petition for judicial dissolution can trigger a purchase election. The corporation, or another shareholder, may elect to buy out the petitioner at fair value. If the parties agree on value and terms within 60 days after the first election is filed, the court enters an order directing the purchase on those terms. During the case the court can issue injunctions, appoint a receiver or custodian, and take steps to preserve corporate assets. Many shareholder and operating agreements also contain their own deadlock-sale provisions, which can displace court-ordered remedies if they are properly initiated first.

The practical point: your choice is rarely “sue or do nothing.” Often the real options are a negotiated exit at a fair price, a structured wind-down, or litigation to unwind the misconduct and recover what was taken. Which one fits depends on whether the business is worth saving and who can run it afterward.

Common Mistakes That Weaken Fiduciary Duty Cases

Waiting too long is the most common one. Evidence goes stale, accounts get closed, and limitations periods keep running. The second is treating the dispute as purely emotional. Courts decide these cases on documents and money trails, so a clear financial narrative beats a long list of grievances.

A third is ignoring your own agreement. Operating agreements may modify fiduciary standards within the limits Florida law allows, require mediation or arbitration first, or set a specific buyout formula. Filing without reading them can mean a motion to compel arbitration or a fight over procedure before you ever reach the merits.

A fourth is tipping off the wrong person. Before you confront anyone, think about what they could do with advance warning, and whether emergency relief should be requested first.

Fiduciary Duty Questions We Hear From Fort Lauderdale Business Owners

What is a breach of fiduciary duty in a business?

It occurs when someone who owes loyalty and care to the company or its co-owners, such as a manager, partner, officer, or controlling owner, puts their own interests ahead of those they serve. Common examples include taking company money, self-dealing, and concealing information.

Who owes a fiduciary duty in a business?

It depends on the entity and the role. Partners, LLC managers, corporate officers and directors, and in some circumstances controlling members or shareholders can owe duties. The operating agreement or shareholder agreement, along with Florida law, shapes the scope.

How is this different from a breach of contract?

A contract claim asks whether someone failed to perform a promise. A fiduciary claim asks whether someone in a position of trust abused it, even where no contract term was technically violated. The remedies and available relief can differ, and the claims are often pleaded together.

How long do I have to file in Florida?

It depends on how the claim is characterized. Claims founded on a written instrument carry a five-year period, claims not founded on a written instrument carry four years, and fraud claims run four years from discovery subject to a 12-year cap. Because the framing controls the deadline, get the claim reviewed promptly.

What can I recover?

Depending on the facts, recovery can include repayment of diverted funds, an accounting, damages for lost value, removal of the wrongdoer from control, and in some cases a court-ordered buyout. The right remedy depends on the evidence and what you want the business to look like afterward.

Can I stop a partner from moving money while the case is pending?

Often, yes. Courts can issue temporary injunctions and, in dissolution proceedings, appoint a receiver or custodian after a hearing. Emergency relief is usually most effective when requested before the other side knows a suit is coming.

I am a minority owner with no access to the books. Do I have any rights?

Yes. Minority owners generally have rights to information and to fair treatment, and freeze-outs are a frequent source of fiduciary claims. A lawyer can review your agreement and the entity’s governing documents to identify what you can demand.

Does my operating agreement require arbitration or mediation first?

Many do. If yours has a dispute-resolution clause, it can determine the forum and sequence of the case. Our attorneys are experienced in mediation and arbitration as well as litigation, so either path is workable.

Can a fiduciary duty claim lead to dissolving the company?

It can. If assets are being misappropriated or wasted, or controlling owners are acting illegally or fraudulently, an LLC member can petition for judicial dissolution, and the court may instead order a buyout or appoint a custodian. Corporate shareholders have comparable remedies, including purchase elections at fair value.

Do I need to live in Florida to bring a claim here?

No. We regularly represent clients from New York, New Jersey, and Connecticut who own businesses or real estate in South Florida. We handle the local court appearances and keep you informed so you do not have to travel for every hearing.

Is it worth hiring a lawyer if the amount taken is modest?

Often it is worth at least a consultation. The cost of a dispute should make sense against the recovery, and many matters resolve through negotiation or mediation before reaching trial. We aim for cost-effective solutions rather than legal fees that outweigh good common sense.

My business partner is also a family member. Does that change anything?

The legal standards are the same, but the handling is not. Family business disputes carry personal weight, so we approach them with discretion while still protecting your financial interests at every step.

Serving Fiduciary Duty Clients Across Fort Lauderdale and South Florida

Our work for business owners begins in Fort Lauderdale and extends across Broward County, including Hollywood, Pompano Beach, Deerfield Beach, Plantation, Sunrise, Davie, Coral Springs, Parkland, Weston, Miramar, Pembroke Pines, Lauderhill, Tamarac, Coconut Creek, Margate, Oakland Park, Wilton Manors, and Lighthouse Point. We also serve owners and investors throughout Palm Beach County, including Boca Raton, Delray Beach, Boynton Beach, West Palm Beach, Palm Beach Gardens, Jupiter, Wellington, and Royal Palm Beach.

Whether the dispute involves a downtown office business, a marine or hospitality company, a family-held property, or an out of state owner with a stake in a South Florida venture, we work with clients from New York, New Jersey, and Connecticut as well as local owners, and we accept referrals from other attorneys whose clients need Florida business litigation counsel.

Talk With a Fort Lauderdale Breach of Fiduciary Duty Lawyer

If you believe a partner, manager, or controlling owner has breached the trust placed in them, an early conversation can clarify your claims, your deadlines, and whether emergency steps are needed. Our team will review your agreements, ask the right questions about the money, and explain a realistic path, whether that is negotiation, mediation, arbitration, or trial.

Contact the Andrew M. Schwartz Legal Team today to speak with a Fort Lauderdale breach of fiduciary duty lawyer about your situation. Call us and we will get you in front of an attorney who knows your file.