Houston Breach of Fiduciary Duty Lawyers

What Is a Breach of Fiduciary Duty in Texas?

A fiduciary duty is a legal obligation requiring one party (the fiduciary) to act in the best interests of another (the beneficiary). Fiduciary duties arise in relationships based on trust and confidence, such as those between executor and heir, director and shareholder, or partner and partner.

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When a fiduciary places their own interests above their duty, misuses assets, or fails to disclose vital information, it may amount to a breach of fiduciary duty under Texas law.

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In Houston, these claims frequently appear in:

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• Probate litigation involving wills, estates, and trusts.

• Business litigation between shareholders, partners, or directors.

• Financial disputes with investment managers or advisors.

Common Types of Fiduciary Relationships in Houston

Fiduciary relationships span multiple industries and personal contexts. The most common include:

Trusts & Estates

• Trustees owe duties of care and loyalty to beneficiaries.

• Executors or administrators must properly manage estate property.

• Breaches often involve misuse of estate funds, self-dealing, or failure to distribute assets.

Business & Shareholder Disputes

• Partners owe fiduciary duties to one another.

• Corporate directors and officers owe duties of loyalty and care to shareholders.

• Breaches occur through self-dealing transactions, misuse of company funds, or reckless decision-making.

Financial Advisors & Professionals

• Investment managers, brokers, and financial planners owe duties to act prudently.

• Breaches include conflicts of interest, account churning, and misrepresentation of risk.

Guardians & Attorneys

• Guardians must protect the best interests of minors or incapacitated persons.

• Attorneys owe fiduciary duties to their clients, including loyalty, confidentiality, and disclosure.

Duties Owed by Fiduciaries Under Texas Law

Texas fiduciary law imposes several core obligations:

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• Duty of Loyalty → Fiduciaries must avoid conflicts of interest and never profit at the expense of those they serve.

• Duty of Care → Fiduciaries must make informed, diligent decisions.

• Duty of Disclosure → Fiduciaries must share material information promptly and fully.

Failure to meet these standards can lead to personal liability, removal from position, and restitution for damages.

How Fiduciary Duties Are Breached

Examples of common fiduciary breaches in Houston cases include:

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• Using corporate or estate assets for personal benefit.

• Entering into self-dealing transactions without proper disclosure.

• Mismanaging estate or trust property.

• Making uninformed or reckless business decisions.

• Withholding critical financial information from beneficiaries or shareholders.

A breach may be intentional (fraud, misappropriation) or negligent (failure to investigate, careless management) — both can create liability.

Proving a Breach of Fiduciary Duty in Court

In Texas, plaintiffs must generally show:

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1. A fiduciary relationship existed.

2. The fiduciary breached their duty (loyalty, care, disclosure).

3. The breach caused damage.

Evidence may include financial records, emails, board minutes, or testimony. Courts will consider whether the fiduciary acted in good faith, with fairness, and without personal gain.

Remedies & Damages Available in Texas

Victims of fiduciary breaches may pursue:

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• Monetary damages → repayment of losses caused by misconduct.

• Disgorgement → fiduciary must surrender profits gained.

• Constructive trusts → property wrongfully taken is returned.

• Injunctions → stopping ongoing misconduct.

• Removal of fiduciary → trustees, executors, or directors may be removed.

In serious cases, punitive damages may apply when conduct is malicious or fraudulent.

👉 Fiduciary Duty Disputes in the Texas Business Court

Starting in 2024, Texas established a specialized Business Court for high-value commercial disputes.

For Houston companies, this means:

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• Shareholder fiduciary lawsuits may now proceed in the Business Court.

• Judges with business law expertise will decide complex governance disputes.

• Outcomes may be more predictable and efficient than traditional district courts.

The Spencer Law Firm is already prepared to represent clients in this new forum.

What To Do If You Suspect a Breach

If you believe a fiduciary has violated their duties:

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1. Gather records → bank statements, contracts, emails.

2. Contact an attorney immediately → early action preserves evidence.

3. File suit if necessary → to freeze assets or stop ongoing misconduct.

4. Consider mediation → in some cases, disputes can resolve before trial.

Why Choose The Spencer Law Firm

At The Spencer Law Firm, we combine local Houston experience with the resources to handle complex fiduciary disputes.

Local Expertise in Houston Fiduciary Law

We know Texas statutes, Houston courts, and the new Texas Business Court inside out.

Litigation & Negotiation Success

Our attorneys have secured favorable results in probate, business, and fiduciary claims.

Personalized Approach

We provide tailored strategies, not cookie-cutter solutions — ensuring your claim receives full attention.

FAQs: Breach of Fiduciary Duty in Houston

1. What is a fiduciary in Texas law?

A fiduciary is someone legally obligated to act in another’s best interest, such as a trustee, executor, partner, or director.

2. What is the most common fiduciary duty breach?

Misusing funds or self-dealing transactions are the most frequent.

3. Can shareholders sue directors in Texas for breach of fiduciary duty?

Yes. Shareholders may file derivative lawsuits if directors breach their obligations.

4. What damages are available in fiduciary duty cases?

Damages can include repayment of losses, disgorgement of profits, injunctions, and, in some cases, punitive damages.

5. Does the Texas Business Court handle fiduciary disputes?

Yes, especially in shareholder and governance-related cases above the jurisdictional threshold.

Protect Your Rights Today

When fiduciaries abuse their power, you deserve justice. The Spencer Law Firm stands ready to defend beneficiaries, shareholders, and business owners in Houston against fiduciary misconduct.

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The Spencer Law Firm has seen and fought intense fiduciary litigations on multiple occasions, both on behalf of beneficiaries and fiduciaries.

From disputes over the control of small businesses to conflicts over the management and distribution of family assets, we know what happens when fiduciaries go to war. Through our experience, we know how to respond to and prepare accountings of estates, trusts, and businesses; to investigate and respond to claims of wrongdoing by fiduciaries; and to bring these conflicts to a close, either through settlement or at trial.