Mismanagement of funds refers to instances where a person fails to observe laws or guidelines when handling finances for another person or organization. Most mismanagement lawsuits involve some form of negligence or neglect on the account of the liable party.
These types of cases are frequently found in connection with trusts, board of director lawsuits, and any time an agency relationship is found (as in a power of attorney or with an executor of an estate).
Mismanagement of funds is a common source of many business disputes. Some examples of mismanagement of funds may include:
Of course, the person or party entrusted with the funds is generally not bound to perform extraordinary feats of financial investment. Instead, the party is required to invest the funds in a way that is “reasonable” and “prudent”. On the other hand, if the party was hired under contract specifically because of their investment skills, they would be expected to perform under the terms set forth in the contract.
Persons who might be held accountable for the mismanagement of funds may include:
Legal remedies for a mismanagement of funds will aim to be proportionate to the type of conduct involve. A common remedy may require the payment of damages for financial losses connected with the mismanagement of funds. Other remedies may include a re-writing of the financial agreement, and/or a replacement of the person managing the funds.
Any type of a mismanagement of funds can present many challenges for an individual or a business. You may wish to hire a business lawyer if you need assistance with legal issues or if you need to file a lawsuit. Your attorney can represent you in court if necessary. Also, you may wish to contact a lawyer for advice at the outset of the management relationship, which can help you avoid conflicts from the beginning.
Last Modified: 04-23-2018 07:51 PM PDTLaw Library Disclaimer
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