When one party does not fulfill its obligations under a contractual agreement, it is considered in breach of the contract, and the party or parties harmed by the breach must consider their options, including litigation.
Breach of Contract
Contracts are legally binding documents designed to guide the parties as to how to fulfill the terms specified. Contracts ensure all parties know what is expected of them and ensure all parties are treated fairly. Businesses rely on contracts to conduct almost every aspect of operations; without them, business transactions may never occur. Thankfully, the law protects parties who agree to binding contracts, so if a dispute arises, any party can file a claim in court.
Regrettably, not all parties adhere to the terms of each contract completely, which can cause serious harm. Any party’s failure to fulfill a contractual obligation is considered a breach of contract. A breach can happen if a party fails to perform on time, does not perform as specified in the agreement, or fails to fulfill any of its contractual obligations.
Breach of Fiduciary Duty
A fiduciary relationship denotes a relationship of trust. A fiduciary is held to a high legal standard, owing numerous duties to their beneficiary, including the duties of loyalty, good faith, candor, integrity, and full disclosure. A fiduciary is legally required to honor a duty of loyalty. A fiduciary’s duty of loyalty requires their exclusive motivation be for the benefit of the beneficiary or company as opposed to themselves. There is no higher duty imposed by law than the duty of a fiduciary to a beneficiary. A breach of fiduciary duty is a serious allegation that can cause significant detrimental consequences for a business or individual.
Fiduciary duties not only attract severe penalties, but they are easy to violate too. Even if the violation is not deliberate, the violator has to account for his or her actions.
Common examples of fiduciary relationships include:
- Principal / Agent
- Trustee / Beneficiary
- Executor of Estate / Heirs
Insurance Coverage Disputes
The purpose of insurance is to help policyholders when they are in need after an unfortunate and often catastrophic event. That is why we pay insurance carriers money or premiums to maintain our policies. Problems arise when insurance companies delay, underpay, or deny payment entirely when you are most in need. Consumers file thousands of legitimate insurance claims every year; unfortunately, insurers do not always live up to their obligations. When this occurs, consumers have an option to file a lawsuit to hold the insurance companies accountable.
Insurance companies continually work to minimize their exposure to claims. The carriers make money by collecting policy premiums, not by paying out on claims. All insurance companies have teams of lawyers to help and protect them and you should too.
Business Litigation Lawyer
John Flood is a seasoned litigator, always ready to go to trial if that is the best choice for his client. Although our office is located in Corpus Christi, our firm has experience successfully resolving large, complex business litigation in forums throughout Texas and across the U.S. John Flood is known for providing high-quality, cost-effective legal services of a true trial lawyer to Texas businesses. For more information on how we can work with your company, contact us today.