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Fraud and Breach of Fiduciary Duty Claims

Experienced Dallas Business Fraud Attorney Handles Breach of Fiduciary Duty Claims

Aggressive representation helps Texas companies recoup losses

Businesses today often face a threat of fraud. Common forms of fraud that may affect a business include embezzlement, financial statement fraud, skimming of company funds by employees, misuse of company assets, and misrepresentations in connection with a business or real estate transaction. In general, proving fraud requires a showing that:

  1. The offending party knowingly or recklessly made a false representation;
  2. The misrepresentation was important to the transaction;
  3. The offending party made the misrepresentation with the intent that the victim rely on it;
  4. The victim did rely on the misrepresentation; and
  5. The victim suffered injury as a result.

Damages available in fraud cases may include the following:

  1. Actual damages – the monetary loss associated with the fraud. Actual damages may include out of pocket losses and benefit of the bargain damages (the difference between the value as represented and as received).
  2. Punitive damages – punitive damages may be assessed as punishment for committing fraud.

In some instances, the injured party may, if necessary, rescind a contract marred by fraud, or the court may order reformation of a fraudulent contract to conform to the original intent of the parties.

At the Law Office of Paul R. Clevenger, I help companies hold wrongdoers accountable and recover compensation for losses due to fraud. Drawing on more than 30 years of business litigation experience, I investigate the situation and assemble the evidence necessary to prove your case. If it becomes necessary to take the case to court, you can rely on my firm to build a compelling case to achieve the maximum possible recovery.

Effective representation when fiduciary duties are breached

When one person is under a duty, created by law or contract, to act on or give advice for the benefit of another, that person has a fiduciary relationship with the other person. For example, partners in a partnership have a fiduciary duty to each other, corporate officers owe a fiduciary duty to the corporations they serve, employees have a fiduciary duty to their employer, and attorneys owe a fiduciary duty to their clients. Under Texas law, fiduciaries owe the following duties:

  1. Duty of loyalty and utmost good faith;
  2. Duty to refrain from self-dealing;
  3. Duty to act with integrity of the strictest kind;
  4. Duty of fair, honest dealing; and
  5. Duty of full disclosure.

When a party having a fiduciary duty to another fails in that duty, the party to whom the duty is owed may sue for breach of fiduciary duty. To prove such a case, the non-breaching party need only show (1) the breaching party had a fiduciary duty to the non-breaching party; (2) the duty was breached; and (3) the breach resulted in either injury to the non-breaching party or an unfair benefit to the breaching party. Damages available in a fiduciary duty case may include both actual and punitive damages. In addition, the court may fashion non-monetary relief as necessary to ensure that funds obtained due to the breach are provided to the injured party and that the breaching conduct is stopped.

When a breach of fiduciary duty against your company has occurred, or your company has been accused of such a breach, it is important to retain an attorney who is willing to engage on a personal level with your company and to take a hands-on approach with your case. You can trust my skill and dedication as I work diligently to deliver the best possible outcome.

Contact a skilled business fraud attorney in Dallas for fraud and breach of fiduciary duty cases

The Law Office of Paul R. Clevenger provides effective representation for businesses and individuals in cases alleging fraud or breach of fiduciary duty. Call me today at 469-212-9764 or contact me online to schedule a consultation. My office is in northeast Dallas at 6510 Abrams Road, close to the White Rock Creek Greenbelt.

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