Fiduciaries Malpractice Lawyers
Protecting the Rights of Those Harmed by Fiduciary Errors & Misconduct
Fiduciaries are individuals or entities that are entrusted with the money, property, or income of another person or party. Fiduciaries have a legal responsibility to act in the best interests of the other party; failure to do so could constitute negligence or malpractice.
If you have been negatively affected by a fiduciary error or act of negligence, you are entitled to take legal action. By filing a lawsuit against the liable party, you can seek financial compensation for the damages you have sustained as a result of their negligence or misconduct.
At Potts Law Firm, we represent clients nationwide in complex fiduciary malpractice lawsuits. Our attorneys have extensive experience in this specific area of law. It is important that you work with someone who understands the unique legal challenges you are facing; our team can help you fully understand your legal rights and options, as well as take swift legal action against the liable party. Our goal is to recover maximum compensation on your behalf.
What Is a Fiduciary?
A fiduciary is a person who owes a duty to another to act in good faith and with due regard for the interests of the other person. Because that term is so broad and could cover so many different types of relationships, courts have held that it would be impossible to provide a definition comprehensive enough to cover all cases.
Formal fiduciary relationships include but are not limited to:
- Business partners
- Agent and principal
- Corporate officers and the corporation
- Persons holding power of attorney
- Joint ventures
- Trustees and beneficiaries
- Executors and beneficiaries
Additionally, informal fiduciary duties can exist in special situations outside of those formal relationships. Examples of informal fiduciary relationships include any relationships built on trust, dependence, and confidence. In Lindley v. McKnight, 349 S.W.3d 113, 124 (Tex. App.—Fort Worth 2011, no pet.), the court stated that “an informal fiduciary duty may arise from a moral, social, domestic or purely personal relationship of trust and confidence; however, in order to give full force to contracts, the court does not create such a relationship lightly.”
Understanding Fiduciary Duty
Generally speaking, being a fiduciary means the person has a duty to act or advise primarily for the benefit of another in matters connected with that relationship. Any time a fiduciary breaches a duty owed, such as putting their own interests first, they have committed a wrong for which damages could potentially be awarded.
In addition to a reward for the economic loss caused by the fiduciary breaching his duties, a person can also recover for mental anguish caused by the fiduciary that is a foreseeable result of the breach.
Examples of Fiduciary Malpractice
Any time a fiduciary breaches the duty of care owed to the other party involved in the fiduciary relationship, fiduciary malpractice has likely occurred.
Some examples of fiduciary malpractice include:
- Prioritizing their own interests to the detriment of the principal
- Conflicts of interest/failing to disclose conflicts of interest
- Entering into a contract in bad faith
- Revealing confidential client information
- Failing to conduct due diligence
- Failing to exercise due care in carrying out duties
- Mismanaging assets or funds
- Exposing a client to liability
- Concealing important information from business partners
- Denying access to records
This is not an exhaustive list; different types of fiduciaries may commit different breaches of fiduciary duty. For example, a member of a board of directors may breach his fiduciary duty to shareholders by refusing to pay dividends or preventing shareholders from voting. An independent contractor may breach her duty of care to a client by sharing the client’s trade secrets or acting on behalf of a competitor. There are many ways in which a fiduciary can breach the duty of care they owe to the other involved party/parties—and Potts Law Firm can help you with your claim no matter the situation you are facing.
Types of Damages Available in Fiduciaries Malpractice Claims
The exact damages you may be entitled to receive in your fiduciary malpractice case depend on the specific economic and noneconomic losses you have sustained as a result of the fiduciary’s error, negligence, or misconduct.
That being said, the following types of damages can generally be recovered in these cases:
- Financial loss
- Mental anguish
- Exemplary, or punitive, damages
While financial loss and mental anguish are examples of compensatory damages, meaning they are awarded to compensate the plaintiff for specific losses, exemplary damages are intended to punish the defendant. Also known as punitive damages, exemplary damages are generally only available when the plaintiff can prove that the defendant acted with gross negligence or willful intent to cause harm.
For a complimentary consultation, call (888) 420-1299 or contact us online today.
Our fiduciary malpractice attorneys have extensive experience representing the rights of those harmed by professional negligence and misconduct. Our team of trial lawyers and support staff is here to guide you through the legal process, providing personal attention and aggressive advocacy every step of the way. We understand the various statutes, regulations, and rules governing fiduciary duty, and we know how to protect your rights.
We offer free initial consultations and case reviews. We can meet you in person or discuss your potential case over the phone at no cost and with no obligation to you. Potts Law Firm has several office locations throughout the U.S. and proudly serves clients nationwide.
If you are unsure if you have a case, don’t hesitate to call us today for a free consultation. Our team of experienced attorneys are ready to review your claim and fight for you.
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