PHAM & CLOVES, PLLC

Have you ever been under a fiduciary duty - would you know if you had?

A fiduciary duty is a special one that arises by virtue of the relationship between parties. A fiduciary duty does not have to be contractual, but arises due to trust and reliance built between the parties over time and through their dealings. This special type of duty involves a higher standard of care than most, if not all, other types of legal duties. When parties are in a fiduciary relationship, they consent to be bound by the rules of that special relationship. The cornerstones of a fiduciary relationship are the notions of good faith and fair dealing. Those bound by this type of relationship cannot self-deal at the expense of the other.

Some common examples of fiduciary relationships are: trustee to trust and trust beneficiaries; lawyer/client; directors and officers of corporations to the corporation; business partners; and lawyers to their clients. Fiduciary relationships can have special duties that are unique to that relation

Some fiduciary relationships have duties unique to that particular relationship. For example, lawyers owe the duty to preserve client confidences; the duty to turn over funds belonging to the client; the duty to act with openness, honesty and candor and without deception; the duty of honesty regarding the fee agreement; the duty to refrain from self-dealing; and the duty to let the client know of conflicts of interest in a timely manner as well as other duties.  

Fiduciary duties can be general in nature, too. Every fiduciary relationship has the same basic duties. Some of them are: the duty of candor; the duty of loyalty and utmost good faith; the duty against self-dealing; the duty to act with strictest integrity; the duty to act prudently and be informed, the duty of fair dealing and honesty; and the duty to fully disclose. All of these duties attach to a fiduciary relationship whether the parties to that relationship realize it or not.

Because you may be subject to the duties of a fiduciary relationship and may not know it, a good course of action could be to consult a Houston Business Law Attorney at Veritas Legal Group, PC for a consultation to analyze your particular situation. You may reach a lawyer at Veritas Legal Group, PC by calling 832-484-9015, or you can simply fill out the online contact form and an attorney at Veritas Legal Group, PC will contact you within 24 hours.