Article on Fiduciary Litigation
The term “fiduciary” means “any person who occupies a position of peculiar confidence towards another.” While these appointments often arise out of a relationship of trust, the fiduciary role can be a thankless one. Once appointed,fiduciaries face a host of issues including deciding to serve, balancing divergent interests, facing threats of litigation, and accounting for and defending their own actions.
As the number of lawsuits involving the role and responsibilities of a fiduciary continues to increase, professionals representing and advising these individuals face an equally difficult job. Unfortunately, neither the Texas Probate Code nor the Texas Property Code-which contains the Texas Trust Code-provides definitive guidance for the role, responsibility, and potential liability of a fiduciary. Adherence to some central considerations and measures may allow fiduciaries to fulfill their fiduciary duties and also substantially reduce (but not eliminate) the potential claims against, and the liability of, thefiduciary. The following is a discussion of ways to reduce potential litigation in this area.
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