FICKLE-FIDUCIARY RULE

fickle-fiduciary rule.A rule that requires a partner or employee to forfeit all compensation,

bonuses, and other benefits received after breaching a fiduciary duty to the employer or

partnership, for as long as the breach continues. • The rule usu. applies to people who are

preparing to resign or have resigned to set up a competing business or work for a competitor.

Mitigating factors, including an absence of harm to the employer or partnership, are usu. not

considered. But a few courts have found that if a strict application of the rule would produce

unjustly harsh results, mitigating factors must be taken into account.[Blacks Law 8th]