Breach of Fiduciary Duty

Breach of Fiduciary Duty Lawyer in Austin

What is a Fiduciary Relationship?

A fiduciary relationship creates an obligation to act in the best interest of another person. This relationship can take many forms, including, but not limited to board members and its shareholders, attorneys and their clients, or a trustee and trust beneficiaries. A fiduciary relationship can also be informal and may be created when one party simply trust and relies on another to act in his best interest.

When a Fiduciary Breaches their Duty

In Texas, it is well established that a fiduciary must act with the highest degree of loyalty, good faith, and reasonable care to ensure the interests and needs of the other party are met. If a fiduciary violates any of these duties, there has been a breach of that legal relationship. There are three elements necessary to prove a breach of fiduciary duty:

  1. There is a fiduciary relationship between the parties;
  2. The fiduciary breached his duty; and
  3. The breach proximately caused harm to the other party and/or benefitted the fiduciary.

All three of the above-listed elements must be met before you can bring a claim for a breach of fiduciary duty.

Some common breaches include the following: 

  1. Misappropriate or embezzle funds;
  2. Fail to disclose or properly protect confidential information;
  3. Misrepresent vital information that impacted a business transaction or decision;
  4. Give wrong or fraudulent business advice; or
  5. Negligently mismanage assets, such as a retirement plan or company funds.

Contact a Business Litigation Attorney

Today If you believe that someone in your life has breached their fiduciary duty or you may have breached a duty to another, you need an experienced and knowledgeable business litigation attorney to help navigate you through the complicated legal process. The attorneys at Kirker | Davis, LLP are skilled in litigating on behalf of their business clients and will work to achieve the most favorable outcome for your legal situation. Contact Kirker | Davis, LLP to speak with an attorney today.

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