Know Your Attorney's Obligations to You

It is important to me that a client feels prepared to hire me and knows their rights, the contract they are signing, and my role as their counsel. Further, while our contract sets forth your obligations as a client so that we can adequately represent you, the law protects you as a client too.

In Texas, attorneys owe fiduciary duties to their clients as a matter of law. This fiduciary relationship requires attorneys to act with the utmost good faith, integrity, and fidelity. The attorney-client relationship is characterized by “absolute perfect candor, openness and honesty, and the absence of any concealment or deception.” Attorneys are obligated to render full and fair disclosure of facts material to the client's representation, ensuring that the client can rely on their advice without suspicion. A breach of fiduciary duty by an attorney typically involves actions such as failing to disclose conflicts of interest, failing to deliver funds belonging to the client, prioritizing personal interests over the client's, improperly using client confidences, engaging in self-dealing, or making misrepresentations. The essence of a fiduciary duty claim focuses on whether the attorney obtained an improper benefit from the representation, rather than merely providing inadequate legal representation, which would fall under legal malpractice. It is also important to note that the scope of an attorney's fiduciary duties is generally limited to matters within the scope of the attorney-client relationship. Attorneys may not act beyond the scope of the representation without the client's authorization. Additionally, the fiduciary duty ends when the attorney-client relationship terminates, unless otherwise agreed.

In Texas, an attorney who breaches fiduciary duties may face several legal consequences, including fee forfeiture, compensatory damages, punitive damages, and disciplinary actions. Fee forfeiture is an equitable remedy designed to protect the integrity of the attorney-client relationship and discourage disloyalty. It is not contingent on the client suffering actual damages but depends on factors such as the nature and severity of the breach, the attorney's culpability, and the adequacy of other remedies. Courts may order partial or total forfeiture of fees if the breach is deemed “clear and serious.” Compensatory damages may be awarded to redress financial losses, lost profits, or other economic harm caused by the breach of fiduciary duties. Punitive damages are also available in cases of intentional or willful breaches to punish and deter similar misconduct. Additionally, Texas law allows for the imposition of prejudgment interest on compensatory damages. Disciplinary actions under the Texas Rules of Disciplinary Procedure may include disbarment, suspension, or public reprimand, depending on the severity of the breach and whether it involved dishonesty, fraud, or misrepresentation. Disbarment is generally appropriate for knowing and intentional breaches causing serious harm, while suspension or reprimands may apply to less severe violations.

Furthermore, under the Texas Penal Code, an attorney who misapplies property held in a fiduciary capacity may face criminal charges, with penalties escalating if the victim is an elderly individual. The Texas Government Code also permits suspension or revocation of an attorney's license for fraudulent or dishonorable conduct, including breaches of fiduciary duty.