Houston Breach of Fiduciary Duty Attorneys

When a breach of fiduciary duty occurs, an experienced legal professional can assist you in enforcing your rights. These types of relationships involve trust and confidence that must be upheld at all times. Your Texas Probate Attorneys, Attorneys at Law are prepared to offer assistance and guidance for a breach of fiduciary duty in Texas.

Overview of Breach of Fiduciary Duty

A breach of fiduciary duty can occur in a wide variety of settings. A breach of fiduciary duty in Texas comprises a fiduciary relationship that is in existence between two parties, the defendant breached their duties and the breach led to the injury of the plaintiff or ultimately benefited the defendant at the expense of the plaintiff. In order to prove these essential elements, it is necessary to obtain the help of an experienced and skilled attorney. A knowledgeable legal professional can assist you in laying the foundation of your relationship, whether it happened as a matter of law or as a matter of fact.

In Texas, the statute of limitations for filing a lawsuit due to a breach of fiduciary duty is four years. According to the Texas Civil Practice and Remedies Code, specifically Section 16.004(a)(5), this time frame is established for individuals seeking legal recourse for such claims. This means that from the moment the breach occurs, there is a four-year window during which action must be taken to address the issue in court.

Common Forms of Fiduciary Relationships

A fiduciary relationship can arise between a trustee, executor, or administrator and a beneficiary, an agent and principal, attorney and client, officers and directors, employees and employers, and many other instances. A fiduciary must employ good faith, care, and loyalty in their dealings. When a breach of fiduciary duty in Texas occurs, the fiduciary can be held accountable for their actions. You may be able to receive restitution for your injury, whether the breach is the result of an intentional or unintentional act.

Understanding the difference between formal and informal fiduciary relationships can be crucial for navigating legal and personal agreements.

The primary rule regarding a fiduciary’s actions is their obligation to refrain from using their position for personal gain unless they have obtained explicit consent from the principal after full disclosure. This principle emphasizes the importance of fiduciaries acting in the principal’s best interest, ensuring complete transparency and honesty in any personal dealings related to their role.

To establish an informal fiduciary relationship in a business transaction, it’s essential that a unique bond of trust and confidence already exists between the parties involved. This relationship of trust must be in place independently of, and before, any formal agreements are made. In essence, the foundation of trust should be separate from the actual business deal, signifying that the parties have relied on and confided in each other before entering into the agreement.

Does Trust and Reliance in a Business Contract Constitute a Confidential Relationship?

In the realm of business agreements, trust and reliance are fundamental pillars. However, they do not automatically create a confidential relationship between parties.

Trust as a Standard

Every business contract inherently involves a level of trust. It is expected that each party will fulfill their obligations as agreed. This mutual trust, however, is a standard component in contracts rather than a signal of confidentiality. Simply put, believing that the other party will perform their duties is part of any contractual agreement.

Longevity and Cordiality

Additionally, the duration of a business relationship or its cordial nature does not transform it into a confidential one. Even longstanding partnerships characterized by mutual respect and amiable interactions don’t necessarily equate to a confidential relationship.

Key Takeaways

• Trust and expectation of performance are part of every contract, not unique markers of confidentiality.
• Cordial relations over time aren’t indicators of a confidential bond.

In summary, while trust and reliability are vital to contractual engagements, they alone do not elevate a business interaction to a confidential relationship.

Formal Fiduciary Relationships

A formal fiduciary relationship is typically defined by law and involves clear, established roles. Common examples include:

• Attorney-Client: Lawyers are legally obligated to act in their clients’ best interests.
• Partnerships: Business partners must uphold loyalty and transparency with each other.
• Trustees: Individuals managing trusts must prioritize the beneficiaries’ interests.

These relationships are standard and formalized within legal frameworks, ensuring all parties understand their responsibilities.

Informal Fiduciary Relationships

In contrast, informal fiduciary relationships develop more organically and rely heavily on personal trust. These arise when one person places confidence in another, regardless of whether the relationship has legal foundations. This could occur in:

• Personal: A friend seeking advice relies on the other’s goodwill.
• Social: Mentorship where guidance and trust are central.
• Domestic: Family interactions where reliance is placed upon another member to act in one’s best interest.

To establish an informal fiduciary relationship in business, there must be a deeper bond of trust that exists independently of any contract.

Key Differentiation

The key distinction lies in structure and origin: formal fiduciary relationships are legally defined and structured, while informal ones are based on trust and personal reliance, often without any legal precedent.

Using Professional Legal Help

You may be entitled to remedies such as actual damages, exemplary damages, constructive trust, fee forfeiture, and other forms of restitution. You have a burden of proof that must be satisfied in order to prove the defendant’s guilt. By hiring an attorney for your breach of fiduciary duty case, you can improve your chances of winning.

With Your Texas Probate Attorneys, Attorneys at Law  you will meet with an attorney who offers personalized attention and superior service. The facts of your case will be evaluated in full detail, in order to determine the merits of your fiduciary relationship and if a breach occurred. They will create an effective legal strategy that will highlight the strengths in your case and point out the weaknesses in the defendants. You can rest assured knowing that your case will be in good hands.

To discuss your fiduciary issue, please call Houston commercial litigation Attorney Keith Morris at (346) 384-8768 in Houston and (817) 532-6797 in Fort Worth or submit an online contact form.