Minnesota Business Attorneys - Breach of fiduciary duty - Fiduciary duties, The Law of Agency, Agent and Principal

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Fiduciary duties arise where one person (i.e., the agent) agrees to act for and on behalf of another (i.e., the principal) in a particular matter, which gives rise to a relationship of trust and confidence. The fiduciary duty is breached where the agent's fiduciary's personal interests and fiduciary duty conflict, where the fiduciary's duty conflicts with another fiduciary duty, or where the fiduciary profits from his position without the principal's express knowledge and consent.

In Minnesota, a variety of claims can be made by a plaintiff against an agent who fails to abide by his obligations. For example, an agent is subject to a duty to use reasonable efforts to give his principal information that is relevant to affairs entrusted to him and which, because the agent has notice, the principal would desire to have. Essentially, it is the agent's duty to prove that full disclosure was made to the principal.

Furthermore, a duty of loyalty exists which requires an agent to set aside his personal or conflicting interests and act solely in the best interest of the princpal. Section 13 of the Restatement of Agency defines fiduciary as "a person who has a duty, created by his undertaking, to act primarily for the benefit of another in matters connected with his undertaking." This fiduciary duty has been more specifically examined and has been explained to mean that an agent:

In his dealings with the principal, he has the duty of full disclosure; in acting for the principal he must not prefer his own [or other's] interests, he cannot compete with the principal nor, without disclosure of his interest, sell his own property to the principal. In carrying out the directions of the principal, he has the duty of normal care.

Warren A. Seavey, The Law of Agency 235 (1964).

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17800 Excelsior Blvd., Suite 100
Minnetonka, MN 55345
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Email: cjkuhn@thekuhnlawfirm.com

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Kuhn Law Firm PLLC represents clients throughout the United States and the Twin Cities - Minneapolis, Minnesota area including Champlin, Crystal Bay, Dayton, Edina, Eden Prairie, Excelsior, Hamel, Hopkins, Howard Lake, Long Lake, Loretto, Maple Plain, Minneapolis, Minnetonka Beach, Minnetonka, Mound, Navarre, Osseo, Rogers, Saint Bonifacius, Saint Paul, Spring Park, Wayzata, Young America, Bloomington, Edina, St. Louis Park, Wayzata, Plymouth, Maple Grove, Brooklyn Park, Anoka, Shakopee, Hastings, Eagan, Burnsville, Buffalo, Waverly, Montrose, Monticello, Otsego, Hennepin County, Anoka County, Carver County, Scott County, Ramsey County, Dakota County, and Wright County.

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