Vermont Order Granting Plaintiff Constructive Trust
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FAQ
Enforcement of a Constructive Trust The establishment of a constructive trust is typically imposed by a court of law. The court may choose to enforce this equitable remedy if the defendant would receive an unfair advantage if the trust is not imposed, or if the defendant has interfered with an existing trust.
The imposition of a constructive trust requires: (1) the existence of res (property or some interest in property); (2) the right of the complaining party to that res; and (3) some wrongful acquisition or detention of the res by another party who is not entitled to it. See Burlesci v.
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. Estoppels may be claimed where there has been either a representation or acquiescence that an interest in property is to arise.
What is the difference between resulting and constructive trusts? Constructive trusts are imposed by the court as an equitable remedy where it would be unconscionable for the other party to hold onto the property.However, resulting trusts give effect to the implied intentions of the owner.
A holds funds that he knows have been paid to him by mistake. A holds an asset that he has obtained by means of fraud. A and another person (B) share a common intention that B should have a beneficial interest in an asset, and B has acted to his detriment on the basis of that intention.
