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Former Business Partner Accused of Breach of Fiduciary Duty

FLORIDA RECORD

Sunday, November 24, 2024

Former Business Partner Accused of Breach of Fiduciary Duty

State Court
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In a dramatic legal battle that could reshape the dynamics of a Florida-based business, Estetique International LLC and its co-founder Seif Sidky have filed a lawsuit against former business partner Candice Piroli. The complaint, lodged by the plaintiffs on June 27, 2024, in the Circuit Court of the 15th Judicial Circuit in Palm Beach County, Florida, accuses Piroli of multiple breaches of fiduciary duty and other serious allegations.

The plaintiffs claim that they co-founded Estetique International LLC with Piroli on May 28, 2019. Both Sidky and Piroli initially held equal ownership stakes and management roles within the company. However, tensions escalated when Piroli allegedly began siphoning funds from the company's accounts for personal use starting in January 2024. By March 29, 2024, she had ceased conducting transactions through the LLC's accounts entirely. According to the complaint, "Defendant ceased conducting transactions using the LLC’s accounts entirely, siphoning monies from all transactions for herself."

Sidky and Estetique International LLC further allege that Piroli engaged in direct competition with their business by continuing to serve clients at an undisclosed location after leaving their Boca Raton office on April 12, 2024. This move not only violated their operating agreement but also tarnished both Sidky's and the company's reputations. The plaintiffs assert that "Defendant has been engaging in business activities in direct competition with the LLC" and has been defaming Sidky to clients and vendors.

The lawsuit accuses Piroli of breaching her fiduciary duties under Florida law by failing to act with loyalty and care towards the company. Specific violations cited include Fla. Stat. § 605.04091(2)(a) for siphoning funds for personal use, § 605.04091(2)(c) for engaging in competing activities, and § 605.04091(4) for failing to discharge her duties with good faith and fair dealing.

Plaintiffs are seeking several forms of relief from the court: expulsion of Piroli as a member and manager of Estetique International LLC; damages exceeding $50,000; attorney’s fees; costs; and declaratory relief allowing Sidky to continue operations independently. They also demand judgment against Piroli for breach of fiduciary duties, breach of duty of care, breach of duty of loyalty, and defamation.

Representing Estetique International LLC and Seif Sidky are attorneys Justin Zeig (FL Bar No.:12306) and Shelby Schwartzberg (FL Bar No.:1031481) from Zeig Law Firm PLLC based in Hollywood, FL. The case is under Case Number: 502024CA006002XXXAMB Div: AN.

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