Practice Area

Breach of Fiduciary Duty — Business

Texas State Court

Situation — How This Comes Up

My business partner has been making secret profits at the company’s expense.

What You Need to Know First

Partners, managers, and directors owe fiduciary duties to their co-owners and the entity. Self-dealing, secret profits, and usurpation of business opportunities are all actionable — and can support disgorgement of every dollar improperly gained.

Full Analysis

Breach of fiduciary duty claims in a business context can be brought against partners, LLC managers, and corporate officers and directors. Remedies include disgorgement, constructive trust, and equitable accounting.

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