Waters, Waters’ Law of Trusts in Canada, (Carswell: Toronto, 2012) 4 th ed. In 1993, the Supreme Court of Canada again considered the issue of constructive … Constructive Trust Analysis. 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. 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. 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. The Supreme Court of Canada released the following decision on Nov 23, 2018: Moore v. Sweet, 2018 SCC 52; File No. Noun. The property was therefore impressed with a constructive trust in Ms. Iberg's favour, proportionate to the unjust enrichment of Mr. Claridge. What is a Constructive Trust. at page 478. Definition of Constructive Trust. For more information about the constructive trust, contact us today. In this article, the author discusses the role of constructive trusts in Canada, examining the connection between unjust enrichment and the constructive trust. Donovan W.M. 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. The constructive trust is a remedy that gives the claimant an interest in property. In order for a constructive trust to be found, the claimant must demonstrate a causal connection between his or her contributions and the acquisition, preservation, maintenance or improvement of the disputed property, and that a monetary award would be insufficient. This illegal ownership may come about through fraud or another type of unconscionable behavior. 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. Alter ego trust. Case brief (Whether common law spouse unjustly enriched at wife’s expense — If so, whether constructive trust is appropriate remedy.) 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. A trust imposed by a court as a remedy for unjust enrichment. A constructive trust is a type of trust that is formed as a remedy to prevent unfair results. 37546. 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. Office: Suite 1300-10020 101A Ave NW, Edmonton, AB T5J 3G2 info@prowsechowne.com Analysis of the Constructive Trust Claim. 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. 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