Breach of fiduciary duty
A fiduciary is someone who is in a position of trust and is responsible for acting in the best interests of another person or entity. The duty requires that the fiduciary act in the best interests of the other party and put their interests ahead of their own.
Executors and trustees owe fiduciary duties to beneficiaries. Power of attorney agents owe fiduciary duties to their principal. Disputes regarding the existence of the fiduciary relationship and obligations of fiduciaries are common issues in estate, trust, and guardianship disputes. When a fiduciary fails to uphold these responsibilities, such as by engaging in self-dealing, misusing funds, or acting in a manner that is contrary to the interests of their client or beneficiary.
The elements of a legal claim for breach of fiduciary duty include:
The existence of a fiduciary duty: This is the first element of a breach of fiduciary duty claim. The plaintiff must prove that the defendant owed them a fiduciary duty. This duty can arise from a contractual relationship, a professional relationship, or a relationship of trust and confidence.
Breach of the fiduciary duty: The plaintiff must prove that the defendant breached their fiduciary duty. This means that the defendant failed to act in the best interests of the plaintiff and instead acted in their own self-interest or in the interest of a third party.
Causation: The plaintiff must prove that the defendant's breach of fiduciary duty caused them harm. This harm can be financial or non-financial, such as loss of trust, reputation, or business opportunities.
Damages: The plaintiff must prove that they suffered damages as a result of the breach of fiduciary duty. These damages can include economic damages such as lost profits, as well as non-economic damages such as emotional distress.
In Texas, the burden of proof for a breach of fiduciary duty claim is on the plaintiff. If a breach of fiduciary duty is established, the plaintiff may be entitled to monetary damages, injunctive relief, and restitution.
In conclusion, a breach of fiduciary duty can have serious legal consequences in Texas. If you believe that someone has breached their fiduciary duty to you, it is important to seek the advice of an experienced Texas estate litigation attorney.