June 14, 2023
Legal Remedies and Strategies for Suing Over Fiduciary Duty Breaches in Texas
Fiduciary duty is an enforceable obligation that requires parties to operate in the other party’s most significant interests. Fiduciary duty in commercial or financial relationships is vital for upholding trust and reassuring ethical conduct. However, fiduciary duty breaches might happen, which can cause substantial harm and financial losses for the people involved.
Understanding your legal alternatives and filing a case is crucial if you ever find yourself in a comparable position in Texas. Several legal options and strategies for pursuing fiduciary duty breaches in Texas will be discussed as you read on, emphasizing the significance of working with a Callender Bowlin attorney.
What is a fiduciary duty?
Let’s first define fiduciary duty and highlight its relevance before discussing legal avenues and strategies.
The obligation to act solely toward the interests of another individual is called a fiduciary duty.
The meaning of “fiduciary” alludes to trust and everybody who has a fiduciary duty is bound by legislation to uphold said trust. For instance, attorneys must look out for their client’s best interests. Like patients, doctors are liable for looking out for and acting in their best interests. Similar obligations apply to directors managing company assets in the best interest of stakeholders and trustees operating trust assets for beneficiaries.
Fiduciary duties involve responsibilities of unwavering loyalty, diligence, and reasonable care, as well as complete disclosure of any conflicts of interest. Even if a fiduciary duty is broken unintentionally, it is still unethical. And most people view an intentional breach of fiduciary duty as particularly grave because it may cause financial distress, asset loss, and impairment of trust.
How can you steer clear of a fiduciary duty breach as a fiduciary?
Taking steps to ensure that Board Resolutions are drawn up at all times when a significant decision is reached by the board of directors or shareholders in the interests of the firm is one approach to prevent breaching your duties as a fiduciary. The decisions that the directors and shareholders have taken can be documented in resolutions.
Further, it’s vital to grasp the principles of your fiduciary duty so that you are aware of their expectations and what actions constitute breaching your obligations. You can prevent breaking your obligations by being aware of and steering clear of prohibited transactions (like ones that are beneficial to you personally or cause damage to the business).
Types of Fiduciary Duty Breaches
Fiduciary duty breaches can take various forms, and each one has legal repercussions and implications. Understanding such infractions is essential when thinking about legal options and litigation approaches. Here are a few common instances of fiduciary duty breaches:
- Asset mismanagement: This infraction unfolds when a fiduciary mismanages or abuses the assets that have been entrusted to them. It involves making irresponsible financial choices, embezzlement, or transferring funds to benefit themselves.
- Self-dealing: A fiduciary commits self-dealing breaches when they prioritize their own interests over the beneficiary. This can involve failing to disclose conflicts of interest or engaging in activities that favor the fiduciary at the cost of the beneficiary.
- Breach of loyalty: Fiduciaries possess a duty of loyalty, indicating that they ought to act in the best interests of the beneficiary and steer clear of any actions that could harm or compromise their position. Acts of disloyalty, rivalry with the beneficiary, or the use of private information for one’s own advantage are all instances of breaches of loyalty.
- Failure to disclose conflicts of interest: Fiduciaries possess a legal obligation to reveal any conflicts of interest that might exist throughout their relationship with the beneficiary. Fiduciary obligation can be broken by failing to make such disclosures.
Legal Remedies for Fiduciary Duty Breaches
In Texas, if you have suffered a breach of fiduciary duty, you have legal options to pursue redress and justice. Some legal claims that may be brought in instances of a fiduciary duty breach include these:
Claim for breach of contract
In some circumstances, a contract outlining the responsibilities and obligations of the parties involved governs the fiduciary relationship. A claim for breach of contract may be pursued if the fiduciary infracts any clauses of the agreement.
Claim for breach of fiduciary duty
The claim alleges that the fiduciary failed to perform their responsibilities and acted so in breach of their duties. The plaintiff ought to exhibit that there was a fiduciary relationship, in which the fiduciary broke their obligation, and that the breach lead to harm or damages as a way to prove a breach of fiduciary duty.
Claim for negligence
A negligence case may be filed if the fiduciary’s breach was prompted by negligence or an inability to apply proper diligence. For one to establish this claim, it must be shown that the fiduciary committed the plaintiff a duty of care, breached that obligation, and inflicted damages.
Claim for fraud
A fraud claim may be brought in situations where the breach entails deliberate misrepresentation, information concealment, or fraudulent activity. For one to pursue this claim, it ought to be established that the fiduciary misled the plaintiff and recognized it, as well as that the misrepresentations were made with the intent of deceiving the plaintiff.
Strategies for Suing Over Fiduciary Duty Breaches
Effective strategies ought to be employed while prepping to file a lawsuit for fiduciary duty breaches to increase your odds of prevailing. Here are some vital strategies that should be taken:
- Gather evidence: Retrieve all pertinent documentation, like contracts, financial records, correspondence, and all additional evidence that concurs with your claim. This proof will support your claim and demonstrate the fiduciary duty breach.
- Consult a lawyer: Get legal counsel from a skilled lawyer with experience handling fiduciary obligation matters. An attorney can evaluate the merits of your claim, assist you with the court procedure, and successfully represent your interests.
- Initiate legal action: Submit a complaint to the relevant court in Texas to begin the proceedings against your fiduciary. Your lawyer will walk you through the procedure whilst making sure that every necessary action is performed in the allocated amount of time.
- Seek damages or equitable remedies: Based on the specifics of your case, you might be qualified for several forms of relief. This may entail requesting financial compensation for losses incurred or demanding equitable remedies like injunctions or orders for a particular action to stop further damage or rectify the breach.
The Significance of Employing a Lawyer from Callender Bowlin
It is vital to have competent legal counsel when tackling complicated legal issues including breaches of fiduciary duty. A lawyer from Callender Bowlin can be retained for advantages such as these:
Expertise in fiduciary duty cases
Callender Bowlin’s lawyers concentrate on fiduciary duty scenarios and possess a comprehensive understanding of Texas regulations and legislation. Our knowledge enables us to negotiate the difficulties of these instances and create strong legal arguments.
Callender Bowlin takes pleasure in offering each client individualized service. We are aware of the particulars of each situation and collaborate closely with clients to ascertain their objectives, worries, and intended results.
Callender Bowlin has an extensive record of prevailing cases involving fiduciary duty breaches. Our reputation and experience show that we can help our clients come out on top.
Obtain Your Breach of Fiduciary Duty Lawyer From CB Trial Today
In a nutshell, it is vital to comprehend the legal options open to you if you have suffered a breach of fiduciary duty in Texas. You may seek for redress and get paid for any damage done by making the right legal claims and using strong approaches. For the chance to successfully traverse the complexities of fiduciary responsibility breach cases and improve your chances of a successful resolution, keep in mind the significance of hiring an experienced breach of fiduciary duty lawyer from Callender Bowlin.
To arrange a free initial appointment, get in touch with us via our form or at (713) 955-9719. 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.