A breach of fiduciary duty can result in significant legal consequences. Those accused of this breach have several defenses they may use to contest the claims. Understanding these defenses can help clarify how the courts in Nevada address these cases.
Due diligence
One of the key defenses in breach of fiduciary duty claims is demonstrating good faith and due diligence. The accused must show that they acted in the best interest of the other party with honesty and reasonable care. This means proving they made informed decisions after carefully considering all relevant information.
Consent and ratification
Another common defense is consent and ratification. If the plaintiff consented to the actions or ratified them after they occurred, the defendant can argue there was no breach. For example, if a beneficiary knew and accepted a trustee’s decision, Nevada law may limit the claim, reducing the likelihood of a successful lawsuit.
Statute of limitations
Nevada has a statute of limitations for breach of fiduciary duty claims. The law limits the time frame in which a plaintiff can bring a lawsuit. The state typically imposes a statute of limitations of four years for breach of fiduciary duty claims, making timely action a critical factor in these cases. If the plaintiff files the claim after this period expires, the defendant can use this as a valid defense, potentially leading to the dismissal of the case.
Navigating fiduciary disputes
Defending against a breach of fiduciary duty involves a variety of strategies, depending on the circumstances. By understanding these defenses, one gains insight into how to go through the process of handling disputes.
