What is a constructive trust?

Ontario, Canada


The following excerpt is from Stanciu v. Stanciu, 2004 CanLII 15291 (ON SC):

What then of a constructive trust. A constructive trust is one created by operation of law and in the interests of good conscience. At one time there had to be shown unjust enrichment on the part of one party and a corresponding deprivation to another. The law has developed that a constructive trust may be imposed in the absence of unjust enrichment to “hold persons in different situations to high standards of trust and probity and prevent them from retaining property which in “good conscience they should not be permitted to retain” (Soulos v. Korkontzilas , supra).

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