Vanwyk Textile Systems sued Zimmer Machinery for breach of fiduciary duty when Zimmer's sales agent secretly competed with Vanwyk and ended their relationship to benefit a competitor. The court ruled that a fiduciary duty claim is separate from a simple contract breach and can result in punitive damages. This matters to subcontractors because it means agents and representatives who betray your trust can face serious financial penalties beyond normal contract damages.
Fiduciary duty claims are distinct from contract breaches and can support punitive damages—not just compensatory damages
If an agent or representative secretly competes with you or terminates a relationship to benefit a rival, you have grounds for a tort claim
Document all agent conduct and communications; evidence of secret competition or disloyalty strengthens your case for punitive damages