Fiduciary duty in Texas describes a relationship in which one person is supposed to act in the interest of another. More specifically, the fiduciary has a duty to be loyal and honest toward the person he or she has promised to help, as he or she has a certain standard to live up to. When this standard is not adhered to by the fiduciary, and he or she has failed to act in the best interest of the other person, there has been a breach of fiduciary duty. If you’re curious about what a Texas breach of fiduciary duty case entails, here are the details you should know.
What Constitutes a Breach of Fiduciary Duty Cause of Action?
Once the breach has occurred, legal action can be taken against the fiduciary in question. This is referred to as a breach of fiduciary duty cause of action. However, this requires the ability to show that a fiduciary relationship did in fact exist and that the fiduciary was in breach of the duties entrusted to him or her. The person taking legal action will have to describe how the actions were done out of the fiduciary’s self-interest and were contrary to the other party’s interests. Finally, he or she will have to describe what damages were caused by the breach of fiduciary duty in Texas.
Breach of Fiduciary Duty Examples
There are several situations in which a breach of fiduciary duty could occur. One of the most common instances is when the trustee of an estate acts in his or her own self-interest, instead of the beneficiary’s, when handling the assets of the deceased. Similarly, there may be a breach of fiduciary duty when a guardian fails to protect and care for his or her ward, who is dependent on the guardian. An attorney could also be in breach of fiduciary duty when he or she does not act in the best interest of a client.
Some breach of fiduciary duty examples involve the workplace. For instance, when an employee actively competes with his or her employer for work while still employed at the company, there may be a breach of fiduciary duty. In addition, if a business owner buys his or her best friend’s struggling business — to the detriment of the business owner’s own company — the shareholders could pursue a breach of fiduciary duty cause of action.
What Breach of Fiduciary Duty Damages Can Be Awarded to the Plaintiff?
In most cases, the damages for a case like this are about equal to the amount of financial damage the fiduciary caused. For example, if an employer can prove that an employee caused him or her to miss out on a contract worth $10,000, the employer may be able to sue for that amount of money. Sometimes, Texas breach of fiduciary duty damages can also be punitive. Suing for more than actual damages incurred may happen when it’s found that the fiduciary performed his or her actions due to malice or fraud.
What Is the Texas Breach of Fiduciary Duty Statute of Limitations?
The statute of limitations for this type of incident varies by state. The Texas breach of fiduciary duty statute of limitations is four years. This means someone must file the case no more than four years after the breach of fiduciary duty cause of action accrued. Since it can be hard to pinpoint when the breach of fiduciary duty began, it may be necessary for a lawyer to help determine when that date was.
If you’re involved in a lawsuit for breach of fiduciary duty in Texas, you may need the legal help of a federal criminal defense attorney in Houston. Contact The Law Offices of Seth Kretzer today to discuss your case with a caring, knowledgeable legal professional.