Houston Breach of Fiduciary Duty Attorney
At Arnold & Itkin, we represent clients in complex business litigation matters, including breach of fiduciary duty. We know business relationships, and your business itself can be quickly threatened when one party fails to uphold his or her duty, and we believe you have a right to experienced representation to protect your business interests.
Understanding Fiduciary Duty
The term "fiduciary" means holding something in trust or good faith—usually money.
Therefore, a fiduciary duty is a legal relationship of confidence between at least two parties. Take, for example, a person's relationship with a bank. One party, the bank or trust company, has the fiduciary duty and is bound to the person who is entrusting their money to them. The bank or trust company has the responsibility of always acting in good faith toward the person entrusting money to them and must always act in their best interest. An accountant is also another good example of someone you would enter into a fiduciary relationship with.
The fiduciary duty falls under the part of the law called "equity." When a fiduciary relationship is agreed upon, it is illegal to act in a way contrary to the best interest of the client. Those who have a fiduciary duty are held to the highest standards of care. A fiduciary relationship may be difficult to define because they can be based on the subjective assumption of trust or objection necessity of trust. Those who have a fiduciary responsibility must always disclose necessary, relevant information to clients within the scope of that relationship. In other words, fiduciaries are not allowed to withhold relevant information and cannot guarantee their client's finances will go well. They can only do their best to provide their clients with the best possible care. This includes being honest, not withholding information, accurately advising, remaining confidential, etc.
If you do wish to file, you will need to prove the following:
- That a fiduciary relationship existed;
- That the fiduciary breached a specific duty that was owed to you; and
- That the said breach entitles you to some sort of remedy.
Our Houston Business Law Attorney Can Help
A breach of fiduciary duty occurs when one individual fails to uphold his or her financial obligation to another individual or entity. A fiduciary duty is an obligation; an example of such is the duty of an accountant to review and report the financial statements of a client honestly. A fiduciary duty also implies a certain level of trust; you trust that your CPA will perform the accounting duties you have agreed to pay for in your contract or agreement. When that trust is violated, the duty has been breached, and typically, financial loss happens as a result.
Some examples of breach of fiduciary duty include the following:
- The trustee of an estate taking or mismanaging money on behalf of a beneficiary
- A business partner taking a business opportunity away from the company for his or her own profit
- A board of directors taking action that goes against the interest of the company for their own financial gain
The bottom line is if you have suffered financial damage because someone else took advantage of your trust and violated the terms of your business relationship, you can pursue a claim for damages.
Pursuing a Breach of Fiduciary Duty Claim in Houston
Arnold & Itkin LLP knows how to prepare extensive and effective cases. We conduct thorough investigations and work with qualified industry experts to evaluate the details of the breach and the damage it caused. We will clearly present the business relationship between your company and the person or company against whom you are filing a claim and present an organized, persuasive argument of evidence on your behalf. If you have been the victim of a breach of fiduciary duty, you deserve the opportunity to recover compensation for your losses.
The Houston business litigation lawyers at our firm are experienced and ready to handle your case. If you need representation or have questions, we can help provide you with the right recommendations to protect your company. At Arnold & Itkin, we have ample experience in dealing with cases such as breach of contract, securities fraud, and breach of fiduciary duty. In fact, many of our attorneys have degrees in business law, graduating at the top of their class and then going on to work in the business world. With this type of comprehensive understanding of commercial litigation should ensure you that by seeking the help of our firm, you are getting the best quality of care available.
Learn more about seeking financial damages caused by a breach of fiduciary duty. Contact us today.