Breach of Fiduciary Duty
Our Houston Litigation Attorneys Help Clients Identify and Resolve Breach of Fiduciary Duty Claims
A fiduciary duty forms when one person (the principal) trusts sensitive matters to another person or organization (the fiduciary). Someone serving in a fiduciary capacity is expected to act in the principal’s best interests at all times.
But sometimes fiduciaries fail, intentionally or through negligence.
Breach of Fiduciary Duty Comes in Many Forms
A fiduciary duty could be created in the following situations:
- An employee often owes a duty of loyalty to an employer.
- Stockbrokers and financial managers are expected to transact business that helps their clients and not themselves.
- Trustees owe a fiduciary duty to the principal and beneficiaries of a trust.
- Guardians and conservators should put the needs of their wards first in all things.
- Personal representatives of an estate act as fiduciaries during probate.
Breaches of fiduciary duty, even something that appears to be a simple mistake or tiny breach, could cause serious financial damage.
We Understand the Damage a Breach of Fiduciary Duty Causes
A breach of fiduciary duty can occur when the fiduciary:
- Does something that harms the beneficiary, or
- Does something that benefits the fiduciary instead of the principal.
For example, a trustee manages trust assets that include a profitable ranch. But the trustee deliberately mismanages the ranch so that it loses value. He and a friend then buy the ranch for a reduced price. In this example, the trustee put his own interests first. The beneficiaries will lose future income because the trustee breached a fiduciary duty.
And We Know How to Prove Your Claim
Our litigation attorneys meet with clients who have been harmed by a breach of fiduciary duty. We assess the unique circumstances surrounding a client’s claims, then provide practical solutions.
Sometimes negotiating a settlement does not work. If so, litigation might be the answer we suggest. Our attorneys have experience successfully handling breach of fiduciary duty litigation claims.