BREACH OF FIDUCIARY DUTY SERVICES

What is a Breach of Fiduciary Duty?

A breach of fiduciary duty occurs when a fiduciary acts in their own self-interest and not in the best interest of the employer or principal. Texas law recognizes that fiduciary duties can arise in many contexts, and the following are examples of fiduciary relationships:

• Broker and principal;

• Trustee and beneficiary;

• Executors of an estate and the estate’s heirs; and

• Attorney and client.

A fiduciary is legally obligated to remain free from conflicts of interest and self-dealing. "Self-dealing" occurs when a fiduciary acts in their own best interest rather than in the best interest of their clients.  Thus, if a fiduciary uses their authority for personal gain, then that fiduciary is said to have breached his or her fiduciary duties.  Our business litigation attorneys represent plaintiffs and defendants in breach of fiduciary duty litigation cases in federal and state courts.

Breach of Fiduciary Duty Litigation Claims

In Texas, the elements of a breach of fiduciary duty claim are: (i) a fiduciary relationship existed between the plaintiff and defendant; (ii) the defendant breached its fiduciary duty to the plaintiff; and (iii) the defendant's breach resulted in injury to the plaintiff or benefit to the defendant.  It is important to note that each state has its own specific laws regarding what constitutes a breach of fiduciary duty.   Examples of wrongful fiduciary acts considered to be breaches of fiduciary duty include, but are not limited to, the following:

• Self-dealing; 

• Willful acts of fraud or other illegal acts; 

• Mismanagement of an estate or failure to follow orders of a will or trust; and

• Negligent management, including imprudent investments.

Defendant a Breach of Fiduciary Duty Lawsuit

The fiduciary relationship does not guarantee for the beneficiary that the fiduciary will always be able to achieve the results requested by the beneficiary.  A fiduciary is not a guarantor of a particular outcome; rather the fiduciary must act in good faith and in the beneficiary's best interest.  Failure to achieve a particular result does not in and of itself rise to the level of a breach of any fiduciary duty.  Further, if the fiduciary performs an act allowed by law, then that act generally does not constitute a of breach any fiduciary duty. 

Accountability is your best ally to avoiding or, if necessary, winning a breach of fiduciary duty litigation suit.  Corporate executives should document with their board of directors all significant major executive decisions as well as the outcomes.  This documentation proves the why, when, and how such actions arose and can be defensively used to show that corporate executives acted in good faith and in the principal's best interest using all information reasonably available at the time of the decision. 

Dallas Breach of Fiduciary Duty Litigation Lawyers



Our Dallas Breach of Fiduciary Duty litigation attorneys has earned a reputation for aggressive, responsive, efficient and, most importantly, successful unfair  breach of fiduciary duty litigation. While we are prepared to take every case to trial, we know from our clients' perspective that often, the best litigation is the one that settles in mediation. Our straight forward unbiased guidance can help you avoid litigation whenever possible. However, if needed, our litigators are skilled in negotiation techniques and have a reputation for achieving very favorable results for our clients both in-court and out-of-court.