dallas breach of fiduciary duty lawyers

In Texas, a fiduciary duty is a legal obligation where one party (the fiduciary) must act solely in the best interest of another party (the beneficiary). This duty is the highest standard of trust and confidence under the law.

In Texas, a breach of fiduciary duty claim requires a plaintiff to prove four key elements: (1) a fiduciary relationship existed between the parties; (2) the fiduciary breached their duty; (3) the breach caused injury to the plaintiff or benefit to the fiduciary; and (4) damages resulted from the breach.

To prove a fiduciary relationship, you typically need to show that one party had a duty to act in the best interest of another, based on a specific type of relationship or agreement. This is done by demonstrating a position of trust and confidence where one party relied on the other's advice and actions. This relationship applies between investment advisors and their clients, business owners and their investors, and business partners themselves.

In Texas, the statute of limitations for a breach of fiduciary duty is four years from the date the cause of action accrues, according to Texas Civil Practice and Remedies Code Section 16.004. This means a lawsuit must be filed within four years of the date the breach caused injury.

When a business dissolves, outstanding debts and contracts are not automatically erased. The business is still obligated to settle these obligations, even if it is no longer operating. Creditors can still pursue payment, and outstanding contracts remain enforceable, especially if they have terms that survive the business's closure.

In Texas, attorney's fees are generally not recoverable unless specifically authorized by statute or contract. The most common statute for recovering attorney's fees in Texas is Texas Civil Practice and Remedies Code, Chapter 38. This chapter allows for the recovery of attorney's fees in cases involving a breach of contract, services rendered, labor performed, or materials furnished, but only against individuals or corporations. A breach of fiduciary duty claim may also qualify.

Texas courts can award a broad mix of monetary and equitable remedies including compensatory damages for direct losses and lost profits, disgorgement of any benefits the fiduciary gained including salary or secret profits, constructive trusts to reclaim misappropriated assets, equitable accountings to trace funds, rescission or reformation of tainted contracts, injunctions or receiverships to freeze assets and halt ongoing harm, exemplary (punitive) damages for fraud, malice, or gross negligence under CPRC § 41.003, and fee-shifting for attorneys’ fees and costs all designed to restore the injured party and strip ill-gotten gains from the wrongdoer.