There is a fiduciary duty in a principal and agent relationship. Essentially, an agent owes the principal a duty of loyalty. In other words, if an agent breaches his or her duty of loyalty or if the agent's conduct constitutes a willful and deliberate breach of the agent's contract of service, he or she is not entitled to compensation even for properly performed services. Under Florida law, an agent who before performing services for a principal, accepts or agrees to accept compensation from another whose interest is adverse to the principal, without the consent of the principal, breaches the duty of loyalty to the principal, and will be held to forfeit any and all right of compensation from the principal. A West Palm Beach business lawyer will advise a plaintiff that the rule rests on the policy removing the temptation of forsaking the interest of the principal away from an agent.

In a cause of action for breach of fiduciary duty, it is immaterial whether or not the principal actually suffers a loss. However, a principal must, assert the agent's breach as an affirmative defense, and the facts warranting the principal's claim of forfeiture of compensation must be clearly alleged and proved. Accordingly, any concealment from the principal of material facts known to the agent will forfeit the agent's right to compensation for his or her services. For instance, an agent who is commissioned by the principal to buy property at a certain amount, but buys it at a lower price and proceeds to sell it to the principal at the higher price, is entitled to compensation for services in negotiating the purchase of the property as well as compensation and reasonable expenses for negotiating a loan on the property on behalf of the principal.

However, the agent is still obligated to account to the principal for the difference between what the agent paid for the property and what the principal paid for it.

A cause of action for breach of a fiduciary duty may have many complex issues. Therefore, you should consult with an experienced West Palm Beach business lawyer. Call Sharmin & Sharmin P.A. at 1-800-74-TRIAL.