Fiduciary litigation in Colorado can be a complex legal process, often arising when disputes emerge regarding the actions or decisions of someone entrusted with managing assets on behalf of others.
Fiduciaries
A fiduciary can include trustees, executors, guardians, and others entrusted with managing someone else’s affairs.
Beneficiaries or heirs usually start fiduciary litigation, which is a legal dispute related to the duties and responsibilities of a fiduciary. Commonly, the person who starts the dispute alleges:
- Breach of fiduciary duty
- Mismanagement of assets
- Conflicts of interest
- Incorrect interpretation of documents
Standing to sue
To file a complaint in court, the individual filing must have standing in court. Standing means they must be a beneficiary, heir, or interested party. In the complaint, they outline the specific allegations and legal remedies they are seeking.
Allegations
Besides having the standing to sue, the defendant must have clear and specific allegations and ask the court for specific legal remedies. In fiduciary litigation, engaging the help of a legal professional is necessary because of its complexity and the nuances involved in this type of law.
The court process
The process begins with the interested party filing a complaint in court, after which:
- There is a period of investigation and evidence-gathering.
- The parties can choose to use alternative dispute resolution methods, like mediation.
- If no other means of resolution are successful, court proceedings.
Remedies
Fiduciary litigation may cause several outcomes, including court-ordered remedies, the removal of the fiduciary or adjustments to the terms of the trusts and estates.
Clients and their attorneys can negotiate settlements, allowing parties to find common ground without protracted court battles.
The fiduciary litigation process can be complex and nuanced, yet sometimes it is necessary. Understanding the intricacies of this area of law, the fiduciary’s responsibilities, and whether an interested party has both standing and a valid claim are all essential to a successful outcome.