What is a constructive trust in Ontario?

What is a constructive trust in Ontario?

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.

What is proprietary estoppel Canada?

Proprietary estoppel attaches to and protects the equity when the person has or acquires a sufficient interest. An interesting problem that confronted (and divided) the Supreme Court of Canada was the issue of an appropriate remedy.

When would you use a constructive trust?

Constructive trusts, on the other hand, can be established by the court when two parties are involved in a civil dispute over property. This type of trust could be established when someone is unfairly given ownership over property, either because of a mistake or because of misconduct on their part.

What is the effect of a constructive trust?

A constructive trust, as opposed to an express trust, arises by the operation of the law of equity rather than by the express intention of a settlor. It is a remedy that seeks to avoid the consequences of unconscionable conduct by one party, to the detriment of a beneficiary.

When can you use proprietary estoppel?

Our earlier post describes the legal test for proprietary estoppel applies in some detail. Generally, proprietary estoppel may apply to situations where the claimant has relied on the promise to make decisions, and going back on the promise would be detrimental to them in a way that is unfair or unjust.

How do you establish proprietary estoppel?

All of the following elements must be present to trigger a proprietary estoppel claim:

  1. A representation, promise, assurance or other encouragement of sufficient clarity giving rise to an expectation by the claimant that he would have a certain proprietary interest;
  2. Reliance by the claimant on that assurance; and.

What is the remedy for proprietary estoppel?

The well known dictum, coined in Crabb, that a remedy for proprietary estoppel must be ‘the minimum to do justice’ for the claimant. The value of the equity will depend upon (a) all the circumstances of the case, including (b) expectation and (c) detriment.

When can Proprietary estoppel be used?

Proprietary estoppel is a claim where a party claims a right to land belonging to another party, in circumstances where the claimant has been led to believe, by a promise (by words or conduct) by the other party, that they have or can expect to be given an interest in the land.

How do you prove a constructive trust?

The elements of a constructive trust are: (1) a promise; (2) transfer of the property and reliance thereon; (3) a confidential relationship; and (4) unjust enrichment.