Suing An Estate Executor For Breach Of Fiduciary Duty In Houston
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The elements of a claim for breach of fiduciary duty are: 1) there is fiduciary relationship between the plaintiff and defendant; 2) the defendant breached his fiduciary duty to the plaintiff; and 3) the defendant's breach proximately caused injury to the plaintiff or benefit to the defendant.
A breach of fiduciary duty can occur in one of many ways, including intentionally failing to act in good faith, failing to use reasonable care, or acting negligently.
An estate beneficiary has a right to sue the executor or administrator if they are not competently doing their job or are engaged in fiduciary misconduct.
A fiduciary's breach could involve doing something for their own personal advantage or neglecting your best interest, and if you know what to look out for, you stand the best possible chance of avoiding personal liability and limiting potential damage.
Here are examples of a breach of fiduciary duty: Misappropriation of assets – Taking or using assets improperly. Conflict of interest – Putting personal interests before duties. Self-dealing – Gaining personal profit from fiduciary roles. Negligent management – Failing to properly handle assets.
If the board of directors or individual board members have breached a fiduciary duty to the shareholders, the shareholders can bring a lawsuit to protect their interests.
An executor has a fiduciary duty to always act in the best interest of the estate. This means that if an executor does not act in the best interest of the estate, they may be subject to court intervention and penalties for a breach of their fiduciary duty.
Common remedies include: Damages — The fiduciary may be required to compensate the organization or the shareholders for any financial losses resulting from the breach. Disgorgement — Any profits the fiduciary made from the breach may have to be surrendered to the organization.
In particular, just some possible defense arguments can include that: The perceived breach of fiduciary duties never, in fact, occurred. The plaintiff relinquished certain rights when entering into the relationship with the fiduciary. The case should be dismissed because the statute of limitations has expired.
