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.
