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    4 Damages Corporations May Face that Cause Necessary Actions

    With most litigation cases that involve partnership, the root cause usually stems from one of these issues:

    • Breach of Contract – partner goes against the contract terms
    • Fiduciary Duty Breach – one business partner betrays the other partner
    • Misrepresentation or Fraud – business partner conceals or misrepresents facts that are material
    • Account Issues– where co-owner steals and what amount of damage has been caused to the company

    As a Coachella Valley corporate law firm, we share these issues that may arise in partnerships to find out if you have cause for action.

    For example, fraud is a cause of action if the party has misrepresented or concealed material facts for which the party previously had knowledge and does not reveal this to the opposite party.

    In one case, I represented a plaintiff purchaser of a national franchise and associated facilities in breach of contract and fraud claims for misrepresenting financials and withholding information regarding location of property on landfill with resulting subsidence to building. Jury awarded seven figures, including punitive damages and the verdict upheld on appeal.

    Parties to the contract define the standard of duty, in some cases. To build the proper case, there are elements required, which include:

    • Fiduciary duty imposed by a legal relationship/contract
    • Law-imposed breach of the duty
    • Breach of the duty damage

    The plaintiff in a cases like these holds the burden of proof where the defendant had a fiduciary duty towards the plaintiff and has breached it. It still has to be proven by the plaintiff that the breach has caused damage.

    Contact Our Coachella Valley Corporate Law Firm for a Consultation

    Whether any duty contract is in existence or not, depends on fact and not the law. The testimonies and credibility of both parties will have to be weighed carefully by the jury to determine the case’s outcome. If you believe you have cause to act against your partner, contact us at 760-322-2275.

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