The following must be shown for the court to impose a constructive trust: “(1) the existence of a res (property or some interest in property)’ (2) the right of a complaining party to that res; and (3) some wrongful acquisition or detention of the res by another party who is not entitled to it .” Communist Party v ...
What are the four elements of constructive trust?
In modern times, four elements must be met before a constructive trust will be imposed: “(1) a confidential or fiduciary relationship which must normally be shown; (2) a promise by defendant; and (3) transfer by plaintiff to defendant in reliance on defendant’s promise (4) under circumstances that constitute unjust ...
How does a constructive trust arise?
A trust that arises by operation of law where it would be unconscionable for a person (A) who holds an asset to deny the beneficial interest of another person in the asset. For example, a constructive trust may arise where: A holds funds that he knows have been paid to him by mistake.
How do you prove constructive trust?
- An enrichment (to the owner spouse);
- A corresponding deprivation (to the non-owner spouse); and,
On what basis is a constructive trust imposed?
Definition. A constructive trust is a trust the courts impose whenever the defendant knows that he has dealt with property in an “unconscionable manner” , such as stealing it, possessing it via fraud, and accepting a bribe while in occupation of a fiduciary office.
What is the remedy for a constructive trust?
A constructive trust is an equitable remedy imposed by a court to benefit a party that has been wrongfully deprived of its rights due to either a person obtaining or holding a legal property right which they should not possess due to unjust enrichment, oppressive conduct or due to a breach of fiduciary duty.
What is the difference between a resulting trust and a constructive trust?
A resulting trust is based upon the presumed intention that arises where a person provides funds for the purchase of property. A constructive trust is founded upon a common intention that can either be expressed or inferred but cannot be based upon an intention that the parties never in fact had.
When would you use a constructive trust?
A constructive trust is created to remedy (or make up for) a situation where there is “unjust enrichment .” If someone has possession of property (money, real estate, or other assets) that they should not have because they obtained it unfairly through fraud or breach of a fiduciary duty, this is unjust enrichment.
What is the effect of constructive trust?
Basic Principles. A constructive trust is an equitable remedy resembling a trust imposed by a court to benefit a party that has been wrongfully deprived of its rights due to either a person obtaining or holding legal right to property which they should not possess due to unjust enrichment or interference.
What is constructive trust in legal terms?
A constructive trust is not an actual trust by the traditional definition. It is a legal fiction that is used as a remedy for unjust enrichment . Hence, there is no trustee, but the constructive trust orders the person who would otherwise be unjustly enriched to transfer the property to the intended party.
What is a constructive trust claim?
A constructive trust is an equitable remedy imposed by a court to benefit a party that has been wrongfully deprived of its rights due to either a person obtaining or holding a legal property right which they should not possess due to unjust enrichment, oppressive conduct or due to a breach of fiduciary duty.
Is constructive trust a cause of action?
“A constructive trust is an equitable remedy, not a cause of action in and of itself , which can be imposed against one who wrongfully detains a thing by fraud, accident, mistake, undue influence, the violation of a trust, or other wrongful act.” (See Civ.
What is the general basis for a constructive trust of the family home?
The elements of such a constructive trust require evidence that is related to the acquisition of the property, or exceptionally subsequent to such acquisition, of an express or implied intention to share the property , relied on by the claimant to his or her detriment.
What is needed to establish a constructive trust?
The three main requirements for a joint venture constructive trust are; (1) an arrangement or understanding between the parties ; (2) reliance on that arrangement or understanding; and (3) an inconsistent act.
What are the two forms of implied trust?
- Resulting trust.
- Constructive trust.
What is a constructive trust equity?
A constructive trust is an equitable remedy that may be granted to address a breach of , or to give effect to, an equitable doctrine or right. The order gives rise to an interest in existing in specie property or other rights. ... Constructive trusts regularly arise in the context of real property.
