An action for breach of fiduciary duty can occur in the case of an instrument payable to a represented person or fiduciary. For in instance, in a case of an instrument payable to the represented person or fiduciary, the taker has notice of the breach of fiduciary duty if the instrument is:

• Taken in payment of, or as security for, a debt known by the taker to be a personal debt of the fiduciary;
  
  

  Taken in a transaction known by the taker to be for the personal benefit of the fiduciary; or

  Deposited to an account other than an account of the fiduciary, as such, or an account of the represented person.

  A West Palm Beach business lawyer will inform a plaintiff the rationale for this Florida law is that it is not normal for an instrument payable to a represented person or fiduciary to be used for the personal benefit of the fiduciary. It is likely that the use of the instrument is an unlawful use of the proceeds of the instrument, and therefore, a breach of the fiduciary duty by the fiduciary. However, if the fiduciary is entitled to compensation from the represented person for services rendered or for expenses incurred by the fiduciary, the normal mode of payment is by a check drawn on the fiduciary account to the order of the fiduciary.

• 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.