A recent Court of Appeal decision has caused considerable concern in relation to the certainty of the statutory provisions being applied to determine net family property equalization between legal married spouses. The main categories of constructive trust. Constructive trust claims can be filed in courts with probate jurisdiction or in courts of general jurisdiction having authority over civil non-probate matters. 37546. The Supreme Court of Canada released the following decision on Nov 23, 2018: Moore v. Sweet, 2018 SCC 52; File No. Alter ego trust. A recent case from British Columbia, Haigh v. Kent, 2013 BCCA 380, addresses these questions (and more). the constructive trust is a device of wide application, but its main purpose continues to be the prevention of unjust enrichment. D.W.M. Academic writers seem to agree that this type of trust developed in an ad hoc fashion from the 17 th century. For a Canadian who reads Joseph Curl’s perceptive review of recent cases in the latest issue of the TQR,1 it is intriguing to observe how things are developing in the wake of the two opinions that exist as between England and Wales on the one hand, and common law Canada on the other, concerning the nature and role of the constructive trust. A constructive trust is imposed by a court in order to benefit a party whose rights have been violated due to another person owning property that he should not possess. Ultimately, the BC Court of Appeal upheld a trial judgment awarding a 25% interest in a campground and beach resort by way of constructive trust to a plaintiff who never expected to earn an interest in the property at all. By using the constructive trust, the court was able to order Constructive trust. Trusts, generally, involve the holding of property for another such as the trustee has liabilities to account in the event of a breach of trust and in the discharge of the trustees duties. It is an implied trust created by the courts when it is unconscionable for a defendant with the legal title to property to claim that property (or some part) beneficially to the prejudice of the claimant. . A constructive trust is not actually a true trust, but a remedy available to a plaintiff seeking to … Constructive Trusts – a Jurisprudential Reminder. Martindale, Justice Southin for the British Columbia Court of Appeal held that the trial judge in the Court below had erred in finding that a trust , whether a resulting trust or constructive trust , arose from the deceased’s mistaken belief that she had changed the beneficiary of her life insurance policy. An equitable remedy is something done by the discretion of the court and not in accordance with a statute. What is a Constructive Trust in the Context of Real Property? Instead, it is a legal remedy to correct “unjust enrichment” that can result from undue influence, fraud or any defective trust or will . Sarah’s boyfriend, Jim, finds the money and uses it to buy a motorcycle in his name. The Constructive Trust in English Law Hon Mr Justice David Hayton, Caribbean Court of Justice Distinguish property held on constructive trust and persons treated as constructive trustees so that they can be made liable to pay compensation Two situations must be clearly distinguished. A constructive trust, on the other hand, is not a true trust because it is established by the courts, not an individual. The Importance of Intention Both Pavlovich and Iberg demonstrate the significance of intention in determining true ownership of property, and the importance of leading credible evidence of this intention. Definition of Constructive Trust. What is a Constructive Trust. The property was therefore impressed with a constructive trust in Ms. Iberg’s favour, proportionate to the unjust enrichment of Mr. Claridge. 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 or interference, or due to a breach of fiduciary duty, which is intercausative with unjust enrichment and/or property interference. A constructive trust is a duty by one person or company to hold some property for another person or company. Noun. Based on McConnell v. Instead, it is a passive arrangement created temporarily for the sole purpose of transferring title of the subject property to the appropriate beneficiary. A constructive trust is a type of trust that the law says exists because it would be otherwise unconscionable for the ‘trustee’ to deny someone else’s beneficial interest, for instance, in the case of mistake or fraud. « Back to Glossary Index In a ‘trust’ situation, the trustee holds the property on trust for the benefit of the beneficiaries. Sarah withdrew $10,000 from her bank account to buy a car. you don’t need a financial contribution to get a constructive trust, it is your labour (Lockean) should contribution to establish a constructive trust be a financial one? Even when the wrongdoer has no other assets and the misappropriated funds have been spent, recovery still may be had through the imposition of a constructive trust. A constructive trust is an aspect of the creative jurisdiction of equity. Property is the core of the trust. 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