April 17, 2025

Legal Remedies and Strategies for Suing Over Fiduciary Duty Breaches in Texas

A breach of fiduciary duty in Texas occurs when someone obligated to act in another person’s best interests violates that trust, resulting in harm to the beneficiary or an improper benefit to the fiduciary. Texas law allows victims to file a lawsuit seeking damages and other remedies to hold fiduciaries accountable for their actions.

Understanding fiduciary duties, the necessary elements to prove breaches, legal strategies, and available remedies can empower you to protect your rights effectively.

What Is a Fiduciary Duty Under Texas Law?

A fiduciary duty is a legal obligation to prioritize another person’s interests over personal gain. Fiduciaries must perform their roles with loyalty, transparency, honesty, and care.

Common Examples of Fiduciary Relationships in Texas:

Trustee and Beneficiary: Trustees must manage trust assets strictly in beneficiaries’ best interests.
Attorney and Client: Attorneys owe duties of confidentiality, loyalty, and competent representation.
Agent and Principal: Agents must act according to principals’ instructions without conflicts of interest.
Business Partners: Partners must act fairly, transparently, and avoid self-serving activities harmful to the partnership.
Corporate Officers and Directors: Officers and directors must place the corporation’s and shareholders’ interests above personal gains.
Executor and Beneficiary of an Estate: Executors must manage estate affairs responsibly and transparently for beneficiaries.
Employee and Employer: Employees holding sensitive roles owe fiduciary duties to employers, including loyalty and confidentiality.

Key Elements of a Breach of Fiduciary Duty Claim in Texas

To successfully sue for breach of fiduciary duty, plaintiffs must establish the following elements:

Fiduciary Relationship:
- Demonstrating the existence of a formal or informal relationship where one party is obligated legally and ethically to act for the benefit of another.
Breach of Duty:
- Showing that the fiduciary failed to fulfill their responsibilities, such as self-dealing, acting against the beneficiary’s interest, withholding critical information, or misusing entrusted resources.
Causation:
- Proving a direct link between the fiduciary’s breach and resulting harm or unjust benefit gained by the fiduciary.
Harm or Benefit:
- Establishing quantifiable losses or damages suffered by the beneficiary or unfair gains accrued by the fiduciary.

Possible Remedies for Breach of Fiduciary Duty in Texas

Victims of fiduciary breaches have several legal remedies, including:

Monetary Damages: Compensation for financial harm directly linked to the fiduciary’s misconduct.
Disgorgement of Profits: Forcing fiduciaries to surrender profits unfairly obtained from their breaches.
Injunctive Relief: Court orders that mandate fiduciaries to cease harmful activities or take corrective action.
Removal of the Fiduciary: Courts can remove fiduciaries from their positions to prevent future harm.
Punitive Damages: Additional monetary awards intended to punish fiduciaries for particularly egregious misconduct or fraud.

Statute of Limitations for Fiduciary Duty Claims

In Texas, the statute of limitations for breach of fiduciary duty claims is generally four years from the date the breach occurred. According to Robbins Estate Law, acting promptly is crucial, as exceeding this time limit typically prevents further legal action. However, under the “discovery rule,” this period may extend if the breach was concealed or not readily apparent.

Strategies for Suing Over Fiduciary Duty Breaches

Successfully pursuing a breach of fiduciary duty claim involves strategic preparation and effective legal tactics, including:

1. Gather Comprehensive Evidence:

Collect all relevant documentation proving the fiduciary relationship, the breach, causation, and resulting damages.
Evidence may include financial statements, communication records, contracts, trust agreements, and expert testimony.

2. Consult an Experienced Attorney:

Engage a lawyer who specializes in fiduciary litigation to ensure accurate assessment of your case and proper handling of procedural requirements.
Experienced counsel can also help identify and pursue maximum remedies and damages.

3. File Promptly:

Ensure your claim is filed within Texas’s four-year statute of limitations period to preserve your right to recovery.
Early filing also strengthens your negotiating position and evidentiary clarity.

4. Clearly Establish Damages and Causation:

Detail and quantify your losses clearly, linking them explicitly to the fiduciary’s breach.
Utilize professional valuations, forensic accounting, and expert witnesses when necessary.

5. Explore Negotiation and Settlement Options:

While litigation is often essential, exploring mediation or negotiation can sometimes yield quicker, cost-effective solutions.
Settlement discussions can expedite resolution and mitigate further damage or expenses.

Important Considerations for Plaintiffs in Texas

Burden of Proof: Plaintiffs carry the responsibility to clearly demonstrate all required elements in court.
Complexity of Fiduciary Cases: Fiduciary duty lawsuits can be complex, requiring nuanced understanding of legal principles, financial transactions, and relationship dynamics.
Legal Representation: Retaining specialized legal counsel significantly increases the likelihood of a favorable outcome.

How Callender Bowlin Can Help You

At Callender Bowlin, we specialize in complex breach of fiduciary duty litigation. Our dedicated breach of fiduciary duty lawyers offer exceptional, personalized legal services designed to effectively address your specific concerns. We protect your interests through:

Rigorous Case Evaluation: Carefully assessing each element of your claim to determine its strength and potential outcomes.
Strategic Litigation and Negotiation: Providing assertive courtroom representation and skilled negotiations focused on achieving optimal results.
Transparency and Communication: Clearly informing you at every stage, ensuring you understand and participate fully in your legal proceedings.
Comprehensive Remedies: Aggressively pursuing every available remedy, from monetary damages to injunctive relief, to ensure complete justice.

Act Now – Protect Your Rights with Callender Bowlin

If you believe you are a victim of fiduciary misconduct, it’s critical to act swiftly. Callender Bowlin can help you understand your rights, assess your claim, and build a strong case for maximum recovery.

To arrange a free initial appointment, get in touch with us via our form or at (713) 300-8700. Our lawyers will be available to guide you if you are incapable to visit our office. We are prepared to support you in whatever way we can.

Our experienced legal team is ready to answer your questions, guide you through the process, and advocate tirelessly on your behalf.