Breach of Fiduciary Duty

Partnership & Fiduciary Duty Dispute Attorney - Santa Cruz

When trust breaks down in a business, the consequences can be devastating. Partners, shareholders, corporate officers, and LLC members owe legal duties to act in the best interests of the company and its owners. When those duties are ignored-whether through self-dealing, hiding critical information, or putting personal gain above the business-it's time to take action.



As a Santa Cruz breach of fiduciary duty lawyer with more than 40 years of litigation experience, James C. Eschen represents business owners throughout Santa Cruz and Monterey counties in partnership and shareholder disputes. We work to protect your rights, your investment, and the future of your company.

Understanding Fiduciary Duty in California

Fiduciary duties are the legal obligations of trust and loyalty that certain people owe in a business relationship. This includes:


  • Duty of Loyalty - Acting in the company's best interest and avoiding conflicts of interest.
  • Duty of Care - Making informed, good-faith decisions for the benefit of the business.

Partners, corporate directors, LLC managers, and majority shareholders can breach these duties when they place personal interests above the company's, withhold key information, or misuse company resources.

We represent clients in a variety of fiduciary breach cases, including:

A partner taking a business opportunity for themselves without offering it to the company.

A corporate officer approving a transaction that benefits them personally (self-dealing).

Majority shareholders misusing company funds to disadvantage minority owners.

Failing to disclose critical business information to partners or investors.

These situations can cause financial harm, erode trust, and threaten the company's stability.

Legal Remedies for Breach of Fiduciary Duty

Depending on the circumstances, courts may order:


  • Monetary Damages - Compensation for losses caused by the breach.
  • Injunctive Relief - Court orders to stop harmful conduct.
  • Forced Buyouts or Dissolution - Removing a partner or ending the business relationship.
  • Removal from Control - Stripping the wrongdoer of decision-making authority.

Every case is unique, and we tailor our strategy to protect your interests and restore fairness to the business.

Our Experience in Partnership Disputes

James C. Eschen conducts a fact-intensive review of business relationships, agreements, and conduct to determine if a breach occurred. He has successfully negotiated resolutions that saved companies from collapse and litigated complex shareholder and partner disputes in court. Whether you need a discreet negotiation or aggressive litigation, we have the skill to move your case forward.

Preventing & Resolving Internal Disputes

Clear partnership agreements, bylaws, and operating agreements can prevent many disputes before they start. Our firm not only resolves fiduciary breach claims-we can also advise on creating or updating governance documents to reduce future conflict.

Fiduciary Duty FAQs

  • How can I prove my partner breached fiduciary duty?

    We look for evidence such as unauthorized transactions, hidden profits, or withheld business opportunities. This may involve subpoenas, discovery, and working with forensic accountants.

  • We don't have a written partnership agreement-do fiduciary duties still apply?

    Yes. Under California law, partners and certain business owners have fiduciary duties even without a written agreement.

  • What if the breach has already damaged the company?

    We can sue for damages, seek to remove the wrongdoer, and pursue other legal remedies to protect the company's future.

Let's Protect Your Business Interests

If you suspect a partner, shareholder, or corporate officer has breached their fiduciary duty, you need to act quickly. We help Santa Cruz and Monterey Bay business owners hold others accountable and protect what they've built.

55 River Street, Suite 100, Santa Cruz, CA 95060