Breach of Fiduciary Duty
People like trustees, business partners, and officers and directors of companies are charged with acting in the best interests of the companies they represent. When these individuals, called fiduciaries, fail to act in a company’s best interest, they can be help responsible for the damage their actions cause through a breach of fiduciary duty claim.
What Is Fiduciary Duty?
Fiduciary duty is a heightened legal duty of officers, directors, agents, executors, administrators, trustees, and others in a position of superior knowledge and trust to act in the utmost good faith and best interest of another party. A fiduciary duty constitutes the highest level of obligation recognized by the law.
Fiduciaries may not benefit from the parties to the relationship to which they owe their duty, also called principals, without their consent. Fiduciaries must also avoid any conflicts of interest between themselves and their principals and between principals and any of their own clients.
A breach of fiduciary duty occurs when fiduciaries obtain profit through self-dealing or cause losses through a breach of their duty. Breach of fiduciary duty can be based on self-dealing, full disclosure and candor, the duty to make an accounting to beneficiaries, and duty of loyalty, among others.
Houston Attorneys Litigating Breach of Fiduciary Duty Claims
If you are a partner or executive in a business, and you believe that one of your associates is failing to live up to his or her fiduciary duty, contact one of our corporate attorneys at the Houston law firm of Adair Myers Stevenson Yagi. We can review your case and determine whether or not it constitutes a breach of fiduciary duty.
Or if you are a fiduciary, and you have been accused of breaching your fiduciary duty, our attorneys can help you understand your legal options and protect your best interests. To discuss your case with one of our experienced litigators, contact us today.