Equity & Trusts 70517 Lecture 11 – Topic 11 Constructive Trusts
Equity & Trusts 70517 Topic 1 - History and Nature of Equity Topic 2 - Unconscionable Dealing and Undue Influence Topic 3 - Equitable Estoppel Topic 4 - Equitable Estates and Interests Topic 5 - Equitable Assignment of Legal Property Topic 6 - Equitable Assignment of Equitable Property Topic 7 - Fiduciary Obligations Topic 8 - Accessory Liability for Breach of Fiduciary Duty or Trust Topic 9 - Tracing and Account of Profits Topic 10 - Equitable Compensation Topic 11 - Constructive Trusts Topic 12 - Resulting Trusts Topic 13 - Express Trusts Topic 14 - Duties, Powers, Rights and Liabilities of Trustees; Rights of Beneficiaries Topic 11 - Constructive Trusts
Equity & Trusts 70517 1. INTRODUCTION 2. CATEGORIES OF CONSTRUCTIVE TRUSTS 3. TIMING OF CONSTRUCTIVE TRUSTS Topic 11 - Constructive Trusts
Equity & Trusts 70517 1. INTRODUCTION A constructive trust is a type of trust that arises by operation of law in circumstances where a court determines that it would be a “fraud” in equity, or “unconscionable”, or against conscience for the holder of the right to deny the trust. As said by Cardozo CJ in Beatty v Guggenheim Exploration Co (1919) 122 NE 378, 380: “When property has been acquired in such circumstances that the holder of the legal title may not in good conscience retain the beneficial interest, equity converts him into a trustee.” Stephenson Nominees Pty Ltd v Official Receiver; Ex parte Roberts (1987) 76 ALR 485, per Gummow J: “Whilst the constructive trust may readily . . be seen as a restitutionary remedy for unjust enrichment . . ., this by no means will always be the case. The constructive trust may be imposed as a cautionary or deterrent remedy even where there has been no unjust enrichment . . . [I]n such situations the constructive trust operates not to restore to the [plaintiff] that of which it was deprived by the conduct complained of, but to enforce observance of the fiduciary duty not to prefer personal interest to duty.” Topic 11 - Constructive Trusts
Equity & Trusts 70517
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- Common Law, Trust law, CONSTRUCTIVE TRUSTS, Account of profits