Helping You Resolve Breach Of Fiduciary Duty Claims Effectively
Last updated on May 5, 2025
A breach of fiduciary duty can be financially devastating and leave businesses and individuals at a loss regarding how to recover from the damage. These cases need a clear understanding of legal rules and economic instruments to address the harm caused by the breach. Proving the existence of a fiduciary bond and demonstrating a breach of that bond can be hard without help from a skilled attorney.
At Dunham LLP, we offer responsive and aggressive representation for businesses and people facing these challenging legal issues in Austin and beyond. Our trial-tested lawyers bring more than 30 years of experience to each case, keeping us at the forefront of business law with innovative ideas that fit each client’s needs. We have an in-depth understanding of claims for breach of fiduciary duty and work hard to shield your rights while seeking a fair resolution under Texas law.
What Is A Breach Of Fiduciary Duty?
A breach of fiduciary duty occurs when a person who owes duties of loyalty, care or good faith to someone else fails to meet those duties. Fiduciary relationships exist when one party places trust and confidence in another who accepts this responsibility and agrees to act in the first party’s best interests. When fiduciaries put their interests ahead of those they represent or fail to act with due care, they may be liable for any harm they cause.
Common types of fiduciary bonds include those between:
- Corporate officers or directors, and their company
- Business partners
- Trustees and beneficiaries
- Agents and principals
- Attorneys and clients
- Brokers and investors
- Executors and estate beneficiaries
The duties vary based on the bond but often include loyalty, care, full disclosure, confidentiality and acting in good faith. Texas courts have set clear rules about what makes a fiduciary bond and the standards that govern these bonds.
What Are The Elements Of A Breach Of Fiduciary Duty?
To win a breach of fiduciary duty claim in Texas, the plaintiff must establish the following:
- A fiduciary bond exists between the parties
- The fiduciary broke one or more duties owed to the plaintiff
- The breach caused harm to the plaintiff or gave the fiduciary an unfair gain
The plaintiff must prove these points, though some legal rules may help their case once a fiduciary bond is shown. Our lawyers help clients gather and present the evidence to show how the fiduciary failed in their duties and the resulting harm.
Remedies for breach of fiduciary duty may include monetary damages, a refund, court-ordered trusts, equitable accounting and, in some cases, punitive damages. The remedy depends on the type of bond, the breach that took place and the extent of the plaintiff’s harm.
Statute Of Limitations For Breach Of Fiduciary Duty In Texas
In Texas, you must file a breach of fiduciary duty claim within four years of finding the breach or should have discovered the violation with reasonable diligence. This “discovery rule” recognizes that breaches often stay hidden and may not be evident to the injured party.
However, many things can affect this time frame, such as:
- If the fiduciary hid the breach
- When the plaintiff should have known about the breach
- If the breach involved fraud
- If the claim deals with special types of fiduciary relationships with different time limits
With these complex rules, you should talk to a lawyer as soon as possible if you think a breach has occurred to protect your rights. Our team can check your case and determine which deadline applies.
Who Can Sue For Breach Of Fiduciary Duty?
Any person or group owed a fiduciary duty can file a breach of fiduciary duty claim if that duty was not met. This often includes:
- Corporate shareholders against directors or officers
- Business partners against other partners
- Clients against professionals (such as attorneys or accountants)
- Beneficiaries against trustees or executors
- Principals against agents
In some cases, third parties may also have the right to sue if they were meant to gain from the fiduciary bond. Also, in some corporate cases, shareholders may bring group actions for the firm when directors or officers have failed in their fiduciary duties.
We handle cases of breach of fiduciary duty across Texas and have won cases for clients in business litigation matters. We serve clients in Austin and across the country. We provide easy access to legal help no matter where the breach occurred.
Contact Us For Breach Of Fiduciary Duty Representation
If you think someone has broken their fiduciary duties to you or your business, quick action will help protect your rights and seek a fair resolution. Our lawyers have the skills and know-how to assess your case and find the most effective plan for you.
Call 512-764-3986 or email us to set up a meeting with our team. We look forward to helping you resolve your breach of fiduciary claim.