Breach of Fiduciary Duty
Fiduciary carries a legal obligation to always act in the best interest of his or her client. These obligations are created whenever an individual places a special reliance, confidence, and trust in the fiduciary to utilize their expertise or discretion when acting on their behalf. Additionally, the fiduciary must have knowingly entered into such a relationship in order for any fiduciary duty to exist.
A breach of fiduciary duty arises when an individual or entity with a close, personal, trusted, or legal fiduciary obligation to another party fails to fulfill their responsibilities in an appropriate manner. Fiduciary relationships describe a broad range of relationships in which a person in a position of trust, the fiduciary, has a legal duty to act in the best interest of another person.
As such, a breach of fiduciary duty may occur in the context of any of the following fiduciary relationships:
- Trustee & beneficiary
- Lawyer & client
- Guardian & ward
- Board of directors & company
- Executers & legatees
This can potentially be a cause for legal action available to any individual who is owed a financial or other duty when the fiduciary who has the duty fails to handle the matter appropriately.
At Hopkins Centrich in The Woodlands and Austin, our firm has more than 110 years of combined legal experience. Our attorneys are experienced in pursuing or defending claims against those who have potentially failed in their fiduciary duties. It is crucial that if you feel that your financial affairs were improperly handled or that you have been sued for allegedly breaching your fiduciary duty, you should contact a legal representative as soon as possible.