Suing for Breach of Fiduciary Duty: What You Need to Know

Breaches of fiduciary duty occur when a professional in a position of trust with a fiduciary duty, like an attorney, fails to act in the best interests of their clients — and yes, you can sue them for it.

After your attorney has violated your trust we understand that hiring another lawyer may be the last thing you want to think about, but Sears Crawford has made our name on helping people in your exact situation. Over the years, we’ve helped many clients with suing for breach of fiduciary duty, and we have the knowledge and experience to help you do the same.

If you’re looking for lawyers that sue lawyers, you need to give Ross Sears from Sears Crawford a call. Ross has been successfully suing lawyers in Texas for over 30 years, getting justice for his clients who have been wronged. Call Ross at Sears Crawford today at (713) 223-3333 to get the help you need.

What constitutes a breach of fiduciary duty in Texas?

A breach of fiduciary duty in Texas is a type of legal malpractice that occurs when a fiduciary acts contrary to the best interests of the party to whom they owe a duty — essentially when they put their interests above yours. Relationships that often involve fiduciary duties include attorneys-client, doctor-patient, trustee-beneficiary, and business partnerships.

Attorneys have a fiduciary duty to act in the best interests of their clients because they are in a position of particular trust and responsibility; when they don’t, it can have devastating consequences.

How do you prove a breach of fiduciary duty?

In order to sue your lawyer for breach of fiduciary duty, you must first be able to prove that your lawyer is guilty of this type of malpractice. As your Houston legal malpractice attorneys, we will help you prove the following for your malpractice lawsuit:

1. There was duty owed. You must prove that a fiduciary relationship existed and that your attorney owed you a duty to represent your best interests. This is typically established via a written contract, although it can be verbal under some circumstances.
2. That duty was breached. The lawyer acted or failed to act in a way that harmed you and in a way that a reasonable and prudent attorney under the same or similar circumstances would not have acted.
3. That breach of duty resulted in harm. The harm is typically proven by showing that the outcome of your case would have been better if the attorney had done what they were required to do under the standard of care for attorneys in the same or similar situation, and the outcome benefitted the attorney to the client’s detriment.
4. The breach in some way benefited the attorney. Typically (but not always), to prove breach of fiduciary duty, you must prove that the lawyer acted in their own self-interest to the detriment of the client and in a way that benefitted the attorney. This can also arise when a lawyer fails to disclose conflicts of interest and other actions.

Legal malpractice claims are not always easy to prove, which is why it is critically important to hire the right malpractice attorney who has experience handling these types of cases.

Please note that there are alternatives to suing your lawyer. However, if you decide to sue your lawyer for breach of fiduciary duty in Texas, it’s wise to find an attorney who has extensive experience in suing a lawyer for malpractice.

Is breach of fiduciary duty a crime?

In Texas, breaches of fiduciary duty are generally considered civil matters rather than criminal ones. Certain types of breaches, however, may overlap with criminal offenses. For instance, if a fiduciary misappropriates funds or engages in fraud, criminal charges like embezzlement or theft may apply.

While the primary goal of suing your lawyer for breach of fiduciary duty is to get you compensation for damages you’ve suffered, in egregious cases, punitive damages may also be sought to deter similar conduct by your lawyer in the future.

What are three examples of breaches of fiduciary duty?

Just like there are countless reasons to sue an attorney, there are countless ways in which an attorney can breach their fiduciary duty. Some common breach of fiduciary duty examples that we see at Sears Crawford include:

1. Self-dealing. Self-dealing occurs when a fiduciary in any way benefits themselves at the expense of the client they owe a duty to.
2. Conflicts of interest. A fiduciary has a duty to avoid situations where their personal or other professional interests conflict with their obligations. Attorneys having relationships with other parties can get complicated and can often mean they’ve breached their fiduciary duty.
3. Misappropriation of funds. Misuse of funds entrusted to a fiduciary is a clear violation of fiduciary duty.

Whether you need to sue your previous lawyer for fraud or sue for overbilling, if your previous attorney breached their fiduciary duty to you, you’re going to need an experienced Texas legal malpractice lawyer to prove it.

What damages are available for breach of fiduciary duty?

Damages in a breach of fiduciary duty lawsuit should aim to compensate you for the ways in which your previous attorney harmed your case. Because these claims often center around a previous court decision, and sometimes economic decisions made in the wake of these legal decisions, economic damages are primarily what are at stake.

Although non-economic damages (e.g. pain and suffering, emotional distress, etc) are usually not on the table in legal malpractice or breach of fiduciary duty cases, you can pursue any economic damages related to the fallout from your case. These can include:

• Differences in settlements that your attorney should have secured you
• Personal or professional economic fallout from the breach
• Profits that your attorney may have reaped or other ill-gotten gains
• Punitive damages

What is the breach of fiduciary duty statute of limitations?

In Texas, the legal malpractice statute of limitations is generally two years from the date of discovery of your attorney’s malpractice. However, if you have clear and distinct breach of fiduciary duty claims against your attorney, the statute for such claims is four years from the date of discovery.

Act quickly! Other types of legal malpractice carry statutes of limitations that are only two years, and generally speaking, the faster you move, the more evidence there will be for your legal malpractice attorney to work with.

Keep in mind that the period begins either when the breach occurs or whenever you should have become aware of the breach, depending on the circumstances. Missing this important deadline can mean missing out on the opportunity to get justice entirely.

Trust Sears Crawford with your breach of fiduciary duty case

We understand how devastating the consequences of your attorney breaking your trust can be, and we have committed our practice to righting these wrongs. Although hiring another lawyer to begin another case may be the last thing you want to do, suing for breach of fiduciary duty is often your only recourse to find justice.

Ross Sears has helped countless clients hold their previous attorneys accountable for legal malpractice and recover the compensation they deserve. If you or a loved one has been wronged by your previous attorney and you’re not sure what to do, Ross is here to help.

Call Sears Crawford at (713) 223-3333 or contact us online today for a free consultation. Let us help you make things right.

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