Breach of Fiduciary Duty Attorneys in The Woodlands
Pursuing & Defending Against Breach of Fiduciary Duty Claims in Houston & Throughout Texas
When a party takes on a fiduciary role, they assume the highest legal obligation possible under Texas law: the duty to act with integrity, honesty, loyalty, and good faith toward another. When a party feels their financial affairs were improperly handled by a fiduciary, they may allege a breach of this duty, which is a serious allegation that carries significant penalties.
Hopkins Centrich Attorneys at Law represents both plaintiffs seeking to hold fiduciaries accountable and defendants striving to protect their professional standing against unfounded claims. We are prepared to take on cases involving both business law and estate planning. Whether we are pursuing a claim for a business owner or defending a trustee, we can examine the specific scope of the fiduciary duty, the actions taken by the fiduciary, and the resulting financial impact. Our experienced attorneys understand how to effectively navigate these cases and build compelling arguments on behalf of our clients. We take a collaborative, client-centric approach and prioritize long-term outcomes over unnecessary legal theatrics.
If you have concerns about the actions of someone who owes you a fiduciary duty, or you have learned you are potentially being sued for allegedly failing to uphold your legal obligations, do not wait to seek professional guidance. We can meet with you virtually, so call (254) 249-5436 or contact us online to schedule an initial consultation with our breach of fiduciary duty lawyers in The Woodlands.
Common Types of Breach of Fiduciary Duty Cases We Handle
Texas law requires that fiduciaries act with unyielding loyalty and good faith toward another party, placing that party's welfare above their own financial interests. In business contexts, corporate officers, directors, and partners owe this strict duty to the company and its shareholders or fellow partners. In the realm of estate planning, trustees, executors, and agents holding a power of attorney owe these obligations to the beneficiaries they serve. A breach occurs when an individual or an entity with a fiduciary obligation fails to appropriately fulfill their responsibilities.
Our attorneys can assist you with disputes involving many types of breaches of fiduciary duty, including:
- Self-dealing. This occurs when a fiduciary benefits personally from a transaction involving the assets they manage. We can handle cases where corporate officers steer contracts to their own side businesses or trustees sell estate property to themselves at below-market rates.
- Misappropriation of funds and assets. Fiduciaries must keep their own property separate from the assets they manage. We can litigate disputes regarding the diversion of company revenue for personal expenses, the unauthorized withdrawal of funds from trust accounts, or the commingling of assets.
- Usurpation of corporate opportunities. Directors and officers must present business opportunities to the corporation before pursuing them individually. We can represent parties in claims where a leader leverages a profitable deal, real estate acquisition, or client relationship that the company had the right and ability to benefit from first.
- Failure to disclose material facts. Transparency constitutes a core element of fiduciary duty. We can pursue and defend claims where a party allegedly hid or misrepresented critical financial information, such as when a partner conceals financial data during a buyout negotiation or an executor fails to inform beneficiaries about the true extent of estate assets and liabilities.
- Imprudent management and waste. Fiduciaries must exercise reasonable care and prudence when making decisions. We can address allegations that a partner or trustee acted recklessly, causing significant devaluation of assets or unnecessary financial loss through poor investment choices or operational negligence.
- Conflicts of interest. A fiduciary must remain free from compromising influences that cloud their judgment. We can assist with cases where an individual’s outside interests, family connections, or dual roles prevent them from acting impartially or in the best interest of the beneficiaries or shareholders.
Types of Damages Available in a Breach of Fiduciary Case
If you have suffered damages due to a fiduciary’s failure to uphold their legal obligations, you can seek compensation and other legal remedies through a breach of fiduciary duty claim. Hopkins Centrich Attorneys at Law can aggressively pursue actual damages on your behalf to compensate you for economic and non-economic losses. Economic losses are directly calculable and can include lost business profits, diminished estate value, or the loss of investment funds that a trustee mishandled. Non-economic losses are more subjective and difficult to quantify, but they can include injury to your reputation, inconvenience, and mental anguish.
Because the law seeks to remove any incentive for misconduct, we may also be able to seek equitable remedies, including profit disgorgement, which forces the fiduciary to give up any gains they made from their actions, and fee forfeiture, which compels them to return any compensation they received during the breach. In cases involving fraud, malice, or gross negligence, we can advocate for punitive damages to punish the wrongdoer and serve as a warning against future violations. Our team can clarify what specific damages may be available in your case.
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Potential Defense Strategies Against Breach of Fiduciary Duty Claims
When a fiduciary faces an accusation of misconduct, it does not automatically mean a legal violation occurred. Business directors, trustees, and executors often must make difficult decisions in volatile markets or complex family dynamics, and a negative outcome does not necessarily indicate a breach of duty. We can aggressively defend clients against these claims by analyzing the specific facts of the situation and applying strong legal defenses. Our attorneys can work to demonstrate that your actions remained within the scope of your authority and that you fulfilled your obligations to the business or estate.
Here are several common defense strategies we may be able to pursue, depending on the circumstances:
- The business judgment rule. Texas law protects corporate officers and directors from liability for honest business mistakes. We may be able to argue that your decisions, even if they resulted in a loss, fell within the exercise of reasonable discretion and honest judgment.
- Statute of limitations. In Texas, a plaintiff generally has four years from the date they knew or should have known about the alleged breach to file a claim. We can scrutinize the timeline to determine if the plaintiff filed their lawsuit too late, particularly by examining when they discovered, or should have reasonably discovered, the alleged harm.
- Ratification and consent. A beneficiary or business partner cannot approve an action and then later sue you for it. We may be able to present evidence showing that the plaintiff had full knowledge of the material facts and voluntarily authorized or accepted the transaction or decision in question.
- Lack of a fiduciary relationship. Not every relationship carries fiduciary obligations. In certain cases, we may be able to challenge the validity of the claim by proving that no formal or informal fiduciary duty existed between you and the plaintiff at the time of the alleged misconduct.
- Good faith and fairness. We may be able to provide evidence that you acted with honesty, loyalty, and without any intent to fraud. Even in transactions involving a conflict of interest, we may be able to defeat a claim demonstrating that the deal was fair to the corporation or beneficiary.
- Lack of causation or damages. A plaintiff must prove that your specific actions caused their financial loss. We may be able to establish that external factors, such as market downturns or third-party interference, caused the damages rather than any conduct on your part.
- Exculpatory clauses. Many trust instruments and company agreements contain provisions that can limit a fiduciary’s liability. We can review the applicable documents to identify clauses that may shield you from liability for certain types of ordinary negligence or errors.
Any potential breach of fiduciary duty demands skilled legal advocacy. Call (254) 249-5436 or contact us online to learn more about how we can provide cost-effective representation when pursuing or facing these claims.
