Breach of Contract

Under the “shingle theory”, financial advisors, analysts, and brokers entering into a relationship with a customer under the title of an investment advisor owes that customer a fiduciary duty to follow all applicable industry rules and regulations.  Additionally, if a customer and firm representative enter into agreements based on promises or contracts, these agreements are legally binding contracts, whether they are written, recorded, verbal, or even, implied. 

Breach Of Contract Violations

Breach of promise or contract occurs when one party fails to live up to the expectations of the verbal, written, or implied contract.  If these breaches cause damages, the responsible party can be held liable for their breach of contract through legal action.  The critical element of breach of promise cases is proving that a contract existed and a violation occurred.   For example, an investor will open up an account with a firm by signing what is called a “new customer agreement”, which contains numerous promises, duties, and implied responsibilities of the firm for new clients.  The new investor believes their account will be taken care of according to the pre-specified terms, and if this does not occur and damages are incurred, investors may be able to take legal action making claims for damage awards.  In some instances, the specific method that a firm and their clients must use to resolve breach of contract disputes may be agreed upon by signing a new customer agreement in some cases, which may limit an investor’s legal options, however, an attorney can help. 

Getting Legal Help

If you feel you have suffered financial losses due to breach of contract or promises by your investment professional, contact a securities fraud attorney for more information on how to get your investment money back through the civil courts.