Trust has become an important intangible asset in organizations as a foundation for cooperation in workplace relationships. The paper discusses and examines trust development in relation to communication within work relationships and more specifically deterioration of trust and trust breach. The paper examines the role of communication in trust building, violation, breaches and restoration in inter-personal relationships to provide insights and implications for further research as well as practice for developing intellectual capital. By presenting the empirical findings from a qualitative case study and other data the paper aims to shed more light on the issue of distrust and how poor communication affects trust development between actors involved. The paper advocates the importance of developing trust and communication for intangible intellectual asset in workplaces and their management. Originality of the paper is based on the idea of exploring the relation between trust and communication, specifically in the situation of trust violation and breach. The paper provides a still under researched view into the development of intellectual capital, since trust and communication as intangible resources have not been widely examined in the context of trust breach, in specific. Implications are made to leadership and development of human intellectual capital. In the theoretical discussion, trust and communication are seen interwoven in interpersonal work relationships. Trust is looked as an intangible asset and skill and communication a means and antecedent for trust. The findings show that poor communication plays a role in loosing trust and trust breaches. It is notable that distrust may permeate widely within the organization and beyond the original parties involved. If space is left to the low trust climate to develop the consequences may be unfavorable, harmful and even damaging to the organization. Based on the findings, trust violation and breach seems to be connected with workplace bullying and the solution for trust breaches may be quitting the work and move away from the place.