A partnership and an LLC with multiple members are excellent examples of a “fiduciary” relationship. Most partnership agreements clearly establish the roles and responsibilities of each partner and perhaps even their responsibilities to the partnership itself. What would constitute a breach of fiduciary duty in a partnership? If one partner became aware of a large lot of inventory (associated with the business of the partnership) which was available at a very low price and attempted to purchase it on their own, outside of the partnership and sell it for a gain it would generally represent an actionable breach of fiduciary duty case. Partnerships are generally held to have a duty of loyalty and responsibility to avoid diverting partnership opportunities for private benefit.

Officers and Directors owe fiduciary duties to the corporation they serve. An example of a breach of fiduciary duty in this setting could involve an officer or director of the corporation who intends to set up a new business and ultimately compete with the corporation they presently serve. The corporate officer or director must terminate the relationship before beginning operations of a competing business. If the corporate officer attempted to “actively solicit” customers or to recruit key employees of the corporation prior to terminating the relationship it would be a breach of fiduciary duty resulting in an actionable lawsuit.