Representation in Matters Involving Breach of Fiduciary Duty
Have you or your business suffered damages from a breach of fiduciary duty? Contact a Breach of Fiduciary Duty Lawyer in Dallas today: (214) 361-6740
A fiduciary relationship can be a great benefit to individuals or businesses, but when an agent breaches their duty, it can cause financial harm. There are legal protections that are available to the beneficiaries of a fiduciary relationship that causes financial loss due to misconduct. If you or your business has suffered damages due to a breach of fiduciary duty, do not hesitate to speak to a Dallas breach of fiduciary duty lawyer with years of litigation experience.
The Hunnicutt Law Group can help you identify existing fiduciary relationships, investigate breaches of duty against you, determine whether fraud was involved and help you gain a fair result. We represent both plaintiffs and defendants in these matters.
Contact our Dallas breach of fiduciary duty lawyers to learn more. We are ready to answer your questions.
What Is A Breach Of Fiduciary Duty?
A fiduciary relationship is one in which a person or business places their trust in another person to manage a financial transaction or account.
Should the fiduciary fail to act in the best interests of the beneficiary and cause financial harm, they have committed a breach of fiduciary duty.
A breach of this duty may also be claimed if the agent does not invest the beneficiary’s funds according to the agreed-upon terms or purposely misrepresents an investment. Fiduciary responsibility includes:
Duty of Reasonable Care: The fiduciary must demonstrate reasonable care in the performance of their appointed financial duties. If they act in a way that would go against what a reasonable person would have done, they may have breached their fiduciary duties.
Duty of Loyalty: The fiduciary may not put their own interests ahead of the interests of the beneficiary. The fiduciary must act for the benefit of the beneficiary, without making any decisions that would be disadvantageous for the beneficiary or for their own benefit.
Duty of Disclosure: The fiduciary must disclose all relevant account information to the beneficiary, account owner or investor. The agent also may not provide false information to influence the beneficiary’s decisions.
Damages for breach of fiduciary duty in Texas
In Texas, the damages for a breach of fiduciary duty can be significant and are designed to address the harm caused by the breach and deter such conduct. When a fiduciary, entrusted with a duty of loyalty and care, violates this trust, the law steps in to rectify the situation. Here’s an overview of the potential damages:
- Compensatory Damages: Aimed at restoring the plaintiff to the position they would have been in had the breach not occurred. This can include:
- Loss of value in investments or assets due to mismanagement.
- Costs incurred in rectifying the breach.
- Profit Disgorgement: The fiduciary may be required to surrender any profits made from the breach, ensuring they do not benefit from their wrongful acts.
- Punitive Damages: In cases of gross negligence or malicious intent, punitive damages may be awarded to punish the wrongdoer and deter similar future conduct.
- Attorney’s Fees and Costs: Texas law sometimes allows the recovery of legal fees and costs associated with addressing the breach, providing further relief to the aggrieved party.
Understanding the scope and nature of damages in such cases is crucial for both fiduciaries and those they serve, highlighting the importance of adhering to fiduciary duties and the potential consequences of failing to do so.
Legal Consequences Of Breach Of Fiduciary Duty
Breach of fiduciary duty is a serious legal matter that can have significant consequences for both the fiduciary and the beneficiary. When a fiduciary, who is entrusted with the responsibility to act in another’s best interest, fails to do so, it can lead to:
- Legal Remedies: The court may order various remedies to address the breach, including:
- Restitution: Compensating for the loss incurred due to the breach.
- Damages: Payment to cover any financial losses suffered by the beneficiary.
- Constructive Trust: Imposing a temporary trust on the fiduciary’s assets to prevent unjust enrichment.
- Equitable Relief: In some cases, the court may impose equitable remedies such as:
- Injunctions: Preventing the fiduciary from continuing harmful actions.
- Rescission: Voiding a transaction that resulted from the breach.
- Reputational Damage: Professionals found in breach of their fiduciary duties may suffer severe reputational harm, impacting their career and future opportunities.
- Disgorgement: The fiduciary may be required to give up any profits made from the breach, ensuring they do not benefit from their wrongful actions.
Understanding these consequences is crucial for fiduciaries to uphold their duties and for beneficiaries to protect their rights. Our Dallas breach of fiduciary lawyers are here to protect your interests and secure justice.
Get Legal Help From A Fiduciary Dispute Attorney in Dallas
When you enter into a fiduciary relationship, you are trusting that your fiduciary will act in your best interests. Fiduciaries are held to the highest financial, legal and ethical standards for this reason.
If this trust is betrayed, however, the responsible parties must be held accountable for the financial harm they have caused. Don’t wait to reach out for help. This requires the experience of a capable, knowledgeable breach of fiduciary lawyer.
The Hunnicutt Law Group is prepared to help you fight for the compensation you deserve. Backed by more than 25 years of legal experience, our breach of fiduciary duty attorney in Dallas is prepared to tackle even the most complex cases.
Call us at (214) 361-6740 or fill out our online form to schedule an initial case consultation.