A constructive trust is a type of trust that is formed as a remedy to prevent unfair results. Although the application of the constructive trust has been treated as an equitable remedy to prevent unjust enrichment in Canada, recently, constructive trust has been applied as a remedy to wrongful acts in the absence of enrichment and corresponding deprivation on the basis of the good conscience doctrine. Definition of Constructive Trust. In first establishing which type of trust may apply to the matter, Justice Heeney pointed out that the resulting trust analysis focuses solely on the initial transaction, in order to determine whether there was an intention to make a gift. What is a Constructive Trust. The constructive trust is a remedy that gives the claimant an interest in property. 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. Noun. The Supreme Court of Canada released the following decision on Nov 23, 2018: Moore v. Sweet, 2018 SCC 52; File No. The property was therefore impressed with a constructive trust in Ms. Iberg's favour, proportionate to the unjust enrichment of Mr. Claridge. A trust imposed by a court as a remedy for unjust enrichment. Alter ego trust. The Court also found that, with respect to any kind of constructive trust, a plaintiff must identify the property which the plaintiff contributed to and must demonstrate that a monetary award would be insufficient. Constructive Trust Analysis. Office: Suite 1300-10020 101A Ave NW, Edmonton, AB T5J 3G2 info@prowsechowne.com This finding of constructive trust despite the absence of a clear-cut relationship between the parties shows how a claim of constructive trust may very well come "out of the blue" as it were and surprise and defeat other creditors. Waters, Waters’ Law of Trusts in Canada, (Carswell: Toronto, 2012) 4 th ed. For more information about the constructive trust, contact us today. This illegal ownership may come about through fraud or another type of unconscionable behavior. Analysis of the Constructive Trust Claim. In 1993, the Supreme Court of Canada again considered the issue of constructive … This is a trust created after 1999 by a settlor who was 65 years of age or older at the time the trust was created, for which the settlor is entitled to receive all the income that may arise during their lifetime, and is the only person who can receive, or get the use of, any income or capital of the trust during the settlor's lifetime. 37546. Case brief (Whether common law spouse unjustly enriched at wife’s expense — If so, whether constructive trust is appropriate remedy.) 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. In this article, the author discusses the role of constructive trusts in Canada, examining the connection between unjust enrichment and the constructive trust. at page 478. 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