Disputes over breach of fiduciary duty and non-compete contracts are often tense and upsetting for both parties involved. Devry Smith Frank LLP (DSF) understands the complexity surrounding these matters and can help you achieve the best outcomes while also working to keep sensitive matters private to minimize reputational harm.
Does your employee have a fiduciary duty to your company and are they potentially in breach of that duty? While all employees have some responsibility to be loyal to their companies, certain employees have a more strict and legal responsibility to act in the best interest of the company. Breaches of this duty can result in a variety of consequences, so it is important to establish if the duty exists.
Establishing whether fiduciary duty exists, depends on these factors:
A breach can occur under three categories: care, loyalty and candor. In short, these three categories mean, respectively, that a fiduciary must act in a reasonable and prudent way, they must act in the best interests of their beneficiary (i.e. an employer, client, etc.) and they must be honest and open with their beneficiary about any circumstances that may do harm.
Examples of breaches can include stealing clients away from an employer, misappropriating funds, or working with or for the competition.
Employers can protect themselves by including non-compete and non-solicitation clauses in their employment contracts.
To ensure your non-compete and non-solicitation clauses can be upheld and enforced, you need employment contracts that will meet the standards of the court and maximize your protection without overstepping the boundaries of the law. DSF has decades of experience drafting employment contracts and can help you create new contracts and ensure the enforceability of existing contracts.
Employees must be aware of what an employment contract can mean for them during their employment and after. Both of these clauses can impact your employment opportunities after you leave an employer and should be considered carefully before signing. DSF lawyers can help determine your rights under a contract and pursue litigation for unfair contracts.
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B.A.(HONS.), B.C.L, LL.B., CERTIFICATE OF CONFLICT MANAGEMENT
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B.A. (Hons.), LL.B.