9 - Constructive Trusts

Source - Unlocking Trusts

Following is the summary of this chapter:

1) Introduction

2) Constructive trust and duty to account

3) Institutional and remedial constructive trusts

4) Recognized categories of constructive trusts - (a) Fiduciary making unauthorized profit (b) Benefit received by fiduciary (c) Bribes and secret profits (d) Trustee-directors remuneration (e) Occasions when trustee can receive remuneration (f) Purchase of trust properties (rule against self dealing see the case of Regal's case)

5) Contract for sale of land

6) Equity will not allow a statute to be used as on engine for fraud

7) Proprietary rights in the family home - (a) legal title in joint names (b) legal title in the name of one party (c) indirect contribution  - there should be either evidence of an agreement or conduct, see Cooke's case and Whipps case; also see s 237 of the Matrimonial Proceedings and Property Act 1970, (d) see how the properties should be valued between husband and wife (e) Order  for sale u/s14 of Trusts of Land and Appointment of Trustees Act

8) Strangers as constructive trustees - (a) Trustees de son tort (b) knowingly receiving and dealing in trust property for his own use ('notice' rule) (c) Alternatve liability ('knowledge' rule) (d) Dishonest assistance or accessory liability (e ) Royal Brunei v Tan Analysis

There are many interesting but complicate cases and legal principles emanating from the cases in this chapter.