Texas Breach of Fiduciary Duty Attorneys
Trust is the foundation of financial and business relationships. When that trust is broken, the consequences can be devastating. If you believe you’ve been harmed due to a breach of fiduciary duty, the team at Mahendru, P.C. is here to help.
Our Texas breach of fiduciary duty attorneys protect clients whose financial interests have been compromised, including business partners, shareholders, trustees, and investors. We offer skilled representation to resolve disputes and pursue justice on your behalf.
What Is Fiduciary Duty?
A fiduciary duty is a legal obligation for one party to act in the best interests of another party, who may be called the “beneficiary.” Fiduciaries must exercise loyalty, honesty, and good faith. They must not take any actions to enrich themselves at the expense of the beneficiary’s interests.
In Texas, a breach of fiduciary duty occurs when someone violates this obligation. Often, this breach results in financial harm or the loss of important rights.
Before you can pursue damages for a breach of fiduciary duties, you must first demonstrate that a fiduciary relationship exists. These are some examples:
- Business partners owe fiduciary duties to each other
- Corporate officers and directors owe duties to shareholders
- Trustees owe duties to beneficiaries of the trust
- Agents owe duties to principals
- Financial advisors owe duties to their investors
- Attorneys owe duties to their clients
- Estate executors owe duties to heirs
All of these breach of fiduciary duty examples are relationships that involve a high degree of trust. When that trust is abused, it may constitute a breach of fiduciary duty.
Examples of Breach of Fiduciary Duty
Here are some examples of how someone may commit a breach of fiduciary responsibility:
- Misappropriating business opportunities
- Misusing or diverting funds
- Withholding critical financial information
- Engaging in conflicts of interest without disclosure
- Using confidential information for personal gain
- Failing to disclose self-dealing or insider transactions
- Negligently managing assets under one’s control
If you’re asking what constitutes a breach of fiduciary duty, the answer is very broad. It can include almost any act that violates the duty of loyalty, care, and good faith that a fiduciary owes to a beneficiary.
How Our Attorneys Can Help
Our breach of fiduciary duty attorneys understand the complex nature of these cases. Whether you’re a plaintiff seeking justice or a fiduciary defending against unfounded claims, we build powerful legal strategies grounded in business law and fiduciary principles.
Thorough Investigation
Our legal team begins by conducting an in-depth review of financial records, agreements, communications, and actions taken (or not taken) by the fiduciary.
Uncovering intent and tracking the flow of money or information is essential to building a strong case. Our attorneys will also gather evidence to establish that a fiduciary relationship existed, which is a prerequisite for seeking damages.
Contract and Relationship Analysis
We conduct a thorough contract analysis to establish the legal roles and obligations of all involved parties. We examine available documents to determine the exact nature of the duty and the evidence for a breach of fiduciary responsibility.
Even if no written contract exists, we may be able to establish a fiduciary relationship. Our team will examine evidence of what happened between you and the other party, including any text or phone communications, payments, and business interactions.
Litigation and Dispute Resolution
Our attorneys strive to resolve disputes quickly and cost-effectively. Our team will explore various resolution options, including mediation, negotiation, and arbitration.
However, we will not hesitate to take your case to court if the other party does not negotiate in good faith. Our passionate attorneys want to prove the breach of fiduciary obligation and win the case as badly as you do.
Protection of Business Interests
In cases where a breach threatens the ongoing health of your business, we act quickly to seek restraining orders or injunctions. Our team can also work to freeze assets and limit further harm. We want to solve your current problem while supporting the long-term growth of your venture.
Damages in Breach of Fiduciary Duty Cases
If you are a victim of fiduciary misconduct, you may suffer heavy financial losses. A Texas court may offer relief in the form of:
- Compensatory damages to restore lost assets or opportunities
- Disgorgement of profits, which forces the fiduciary to return any ill-gotten gains
- Injunctive relief to prevent ongoing harm or future violations
Our goal is to ensure you are made whole, or as close to whole as possible.
Frequently Asked Questions
Is Breach of Fiduciary Duty a Criminal Offense in Texas?
While a breach of fiduciary duty is typically a civil matter, certain breaches could call for criminal charges. For instance, violations that involve fraud, theft, or embezzlement could lead to criminal charges against the offender.
What Is the Statute of Limitations for Breach of Fiduciary Duty in Texas?
The statute of limitations is four years from the date the breach occurred. However, this period could be extended if the breach was concealed from you. In this case, you may have up to four years from the date the breach was discovered to file a claim.
Can Multiple Fiduciaries Be Held Liable Together?
Yes. If more than one party participated in or allowed a breach to occur, you could file a joint suit against multiple parties.
Do I Need Written Proof of a Fiduciary Relationship?
Not always. Fiduciary duties can arise from formal or informal relationships where one party places special trust in another. However, establishing that a fiduciary duty exists can be more challenging without written proof.
Can a Fiduciary Recover Legal Costs if Cleared of Wrongdoing?
Yes, a fiduciary may be able to recover legal fees if they are cleared of any wrongdoing. For example, the court may order the plaintiff to pay any fees the defendant incurred due to bad-faith litigation.
Get Help From Our Breach of Fiduciary Duty Lawyers Today
At Mahendru, P.C., we have the business insights and experience necessary to protect your interests in complex disputes. Contact our team today to schedule a consultation.