What legal recourse does a principal have if an agent breaches their fiduciary duty?

When an agent breaches their fiduciary duty, the principal has several avenues for legal recourse, with pursuing damages or terminating the relationship being a primary option. This response is grounded in the fundamental principles of agency law, where the agent has a legal obligation to act in the best interests of the principal. A breach occurs when the agent fails to uphold these duties, such as loyalty, confidentiality, or full disclosure.

In such cases, the principal can seek damages to recover any losses suffered due to the agent's actions. This may include financial losses or other forms of harm that directly relate to the breach. Additionally, the principal may choose to terminate the agency relationship altogether, effectively ending the agent's authority to act on their behalf.

While seeking an injunction could be a viable legal remedy in certain contexts, it is not typically the most direct recourse available for breaches of fiduciary duty. Filing a complaint with a local board of realtors or requesting a hearing for arbitration are also possible actions, but these do not directly address the principal's immediate remedies for the wrongful actions of the agent.