Breach of Trust in Texas Business: Your Rights and What to Do

Trust is the invisible glue that holds a business together. Owners depend on partners, managers, and employees to act honestly and to protect the company’s best interests. When that trust collapses, the fallout can be severe. Funds may be misused, business opportunities lost, or confidential information passed to competitors.

Under Texas law, these situations are not only frustrating but can rise to the level of legal claims. Courts recognize that when trust is broken in a business relationship, the damage can be lasting. Knowing how Texas law treats these breaches and understanding the steps you can take is essential for protecting your business.

If you believe a partner, officer, or employee has violated your trust, you should not wait to get advice. Contact S. McCorquodale P.C. today to arrange a consultation with an attorney who can guide you through your options.

What Breach of Trust Means in Texas Businesses

In Texas, breach of trust often refers to situations where a fiduciary duty has been violated. A fiduciary is someone who has a legal responsibility to act with loyalty, care, and honesty toward another party. Within a business, this usually includes partners, officers, and directors, but it can also involve employees who are trusted with sensitive roles.

A breach may take many forms. It could involve misusing company assets, steering valuable deals to oneself instead of the company, leaking confidential data, or making decisions that serve personal interests while harming the business. Unlike a simple mistake, these are choices that put self-interest above responsibility.

Texas courts take fiduciary duties seriously. Judges know that businesses cannot succeed when those in positions of trust are free to act against the company. As a result, courts are willing to impose remedies when a breach is proven, and those remedies can be significant.

Remedies Available Under Texas Law

When a breach of trust occurs, the law provides several tools to address the harm. Financial compensation is the most common. Courts may order repayment for losses or require that any profits gained through disloyal conduct be returned. This prevents the wrongdoer from benefiting at the expense of the business.

In some situations, financial damages are not enough. Texas courts may grant injunctions to stop certain conduct or remove a partner or executive who can no longer be trusted. A constructive trust may also be placed over property or funds to ensure they are returned to the rightful party.

The remedies available depend heavily on the facts. Business agreements such as partnership contracts or shareholder agreements often play a key role in how a case is argued. Having a business dispute attorney who understands these details allows you to pursue the most effective remedy.

What Business Owners Should Do if They Suspect a Breach

If you believe a breach of trust has taken place, taking early and careful steps can protect your rights. Begin by collecting records. Financial documents, contracts, emails, and internal reports may help show how the breach occurred. Solid documentation strengthens your position in any negotiation or court proceeding.

The next step is consulting with a lawyer who focuses on Texas business disputes. An attorney can analyze the facts, explain the law, and guide you toward resolution. In some cases, disputes can be resolved through negotiation or mediation. In others, litigation may be necessary to protect the business and recover damages.

If the conduct involves fraud or theft, criminal charges may also be possible. In those cases, working with counsel ensures that your civil claims are coordinated with any potential criminal investigation.

Protecting Your Texas Business Starts with Legal Guidance

When trust is broken in a business relationship, the damage can reach far beyond the immediate loss. It can affect reputation, future opportunities, and the stability of the entire company. Texas law provides remedies, but success requires quick action and strong representation.

Do not wait until the situation becomes worse. If you believe someone in your business has breached their duty, contact S. McCorquodale P.C. today to schedule a consultation. Our attorneys are ready to review your case and help you protect both your rights and your business.