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Helms Greene LLC v. Willis

The law firm did not need to prove that it suffered damage or that its former managing member's disloyal conduct benefited him in order to pursue a breach of fiduciary duty claim, because an available remedy for breach of fiduciary duty is recovery of compensation the principal paid to the agent during the period of disloyalty.

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Kirk Willis, an attorney and the former managing member of the Dallas, Texas office of Helms Greene, LLC, filed an action against Helms Greene in the trial court to recover incentive and bonus compensation he alleged he was owed following his departure from that law firm. Helms Greene asserted counterclaims, including a counterclaim for breach of fiduciary duty. In an order granting in part and denying in part the parties’ cross motions for summary judgment, the trial court, among other things, granted summary judgment in Willis’ favor on the breach of fiduciary duty counterclaim to the extent that it was based on Willis’ conduct in marketing his own professional corporation while still employed by Helms Greene. Helms Greene appeals, arguing that it did not need to prove that it suffered damage or that the marketing efforts were lucrative to Willis in order to pursue a breach of fiduciary duty claim based on those marketing efforts. Concluding that an available remedy for breach of fiduciary duty is recovery of compensation the principal paid to the agent during the time the agent breached a fiduciary duty, we reverse.

On appeal from a grant of summary judgment, we review the evidence de novo, viewing it in the light most favorable to the nonmovant, to determine whether a genuine issue of fact remains and whether the moving party is entitled to judgment as a matter of law. Summary judgment is proper only when no issue of material fact exists and the moving party is entitled to judgment as a matter of law.

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