Fraud & Misrepresentation
Houston Fraud & Misrepresentation Attorneys
What Is 'Fraud' in Business Litigation?
Business fraud involves an individual or business entity’s intentional deception of another to profit or gain an advantage. Anyone involved in commercial transactions and contractual relationships face inherent risks related to fraud, including fraud that comes from within an organization and its employees, as well as fraud involving other parties.
On This Page
- Types of Cases Our Legal Team Takes
- What to Do if Your Business Is Involved in a Business Fraud Dispute
- Business Fraud and Misrepresentation Take Many Forms
- Proving Fraud and Misrepresentation
- Innocent Misrepresentation vs Negligent Misrepresentation
- Take a Stand Against Business Fraud
Business fraud can jeopardize your most important assets, information, and business. Learn how our industry leading business attorneys can help when you call (713) 909-7323 for an initial consultation.
Types of Cases Our Legal Team Takes
- Fraud – The deliberate, intentional representation of facts which the defendant knew to be false, in order to deceive the plaintiff into entering an agreement. Fraud is a statute violation, meaning it’s a violation of a written, codified law.
- Misrepresentation – The representation of false information which the defendant believed to be true at the time the agreement was made but were later proved to be false. This violation is a violation of contractual law, where one party breached the terms of an agreement.
- Breach of Fiduciary Duty – A violation of the relationship between a fiduciary (e.g. an accountant, a shareholder, an employee, anyone who is obligated to act in another’s interest) and another party. Breach of fiduciary duty is a legal theory applied in common law, meaning the judge mainly relies on previous cases to render judgement.
What to Do if Your Business Is Involved in a Business Fraud Dispute
Because fraud creates significant threats to a business and its financial solvency, taking appropriate steps to pursue legal remedies and compensation for any losses is critical to success. Additionally, for those who stand accused of corporate or business fraud, threats to one’s personal reputation and future make legal counsel a top priority.
At Hendershot Cowart P.C., our Houston-based litigation practice focuses heavily on protecting businesses against fraud, breach of fiduciary duty, misrepresentation, and losses through proactive counseling and the development of clear and enforceable contracts. We also protect the interests of businesses across Texas when litigating to remedy the situation or defend against accusations.
Business Fraud and Misrepresentation Take Many Forms
Business fraud takes many forms, which is why it is critical businesses work with attorneys who have the breadth of experience needed to handle and address a range of issues. From internal theft and deception within company ranks to contractual breaches caused by misrepresentation and fraudulent conduct of third parties, we handle the full range of cases.
- Fraudulent misrepresentation
- Bribery, payoffs and kickbacks
- Misappropriation of trade secrets
- Theft of trade secrets
- Patent and trademark infringement
- Non-compete violations
Proving Fraud and Misrepresentation
When a party enters into an agreement by making a representation of a false material fact, they can be held liable for damages.
To prove fraud and prevail in a claim, several elements must be established:
- The defendant made a material representation
- The material representation was false
- The representation was known to be false by the defendant, or made recklessly without knowledge of its truth
- The defendant intended for the plaintiff to rely upon the representation
- The plaintiff acted upon the representation
- The plaintiff suffered damages as a result
It is important to note a defendant can also be guilty of fraud involving the deliberate failure to disclose a substantial material fact. In these cases, it must be proven that the undisclosed material fact created a false impression which was relied upon by the plaintiff and ultimately resulted in damages.
Innocent Misrepresentation vs Negligent Misrepresentation
Representations of material facts defendants knew to be true (as innocent or negligent misrepresentation) may also be grounds for legal remedy. These forms of misrepresentation lack a deliberate intent to deceive the plaintiff and are handled differently.
- Innocent Misrepresentation – The party that made the representation reasonably believed the information provided to be true. This form of misrepresentation is generally remedied through rescission, which means the transaction or contract will be treated as though it never existed.
- Negligent Misrepresentation – The party that made the representation believed the information to be true, based upon no reasonable grounds. This form of misrepresentation can be remedied with rescission, along with civil damages.
Proving fraud and misrepresentation requires a meticulous evaluation of the facts and circumstances surrounding your business, professional relationships, contracts, and transactions. It also necessitates the gathering of evidence to prove a defendant’s intent, which may be highlighted through subsequent acts made after a false material fact was represented. Our team thoroughly explores our clients’ situations to help them determine their available options, crafts strategies to secure the results they need, and litigates when necessary.
Take a Stand Against Business Fraud
Hendershot Cowart P.C. has solidified our reputation as experienced and zealous advocates for businesses across Texas. If you wish to take a stand against fraud with our proven Houston-based attorneys, or are currently facing investigations or allegations related to fraud, we are readily available to discuss your rights and options during an initial consultation.
Contact us to get started with a Texas fraud & misrepresentation attorney.
We Shoulder the Legal Burden.™And let you get back to business.
We Want to Be Your Law Firm for Life.We take a vested interest in our clients' success – from start to finish.
We Believe in Prompt, Personal Attention.As a boutique law firm, we unite real experience with personal attention.
We Serve Clients Throughout Texas and the Nation.We handle matters from the Red River to the Rio Grande and beyond.
In Business Since 1987.Let us put the full force of our 100+ years of combined experience to work for you.
“I cannot say enough good things about my Lawyer, Mr. David Augustus. His calm, laser-like knowledge of business law allowed me to prevail and teach a few others during the short negotiations. Having the full backing of his law firm also helped greatly.” - L.A.
“Excellent experience working with Ray to settle our partnership disillusion. He was consistently available and steadfast in his guidance. Highly recommend this firm.” - S.H.
“I retained Hendershot Cowart last year. Though an obvious small case for the firm, it was traumatic and very personal for me. Ashley Arnett guided me through the process, never once making me feel that my case wasn’t any less important as any other.” - S.L.