G. Constructive Trusts

Question 1

What is required for Constructive Trusts?*

Answer 1

1) Confidential/Fiduciary relationship
- Party has superior knowledge/expertise
- Party has duty to protect other’s interest
- Party is dependent on/subject to other’s control
- Attorney-Client/Guardian-Ward/Physician-Patient/Priest-Penitent

2) Promise (implied/express)
- Party would hold trust for another

3) Transfer of subject res made in reliance on that promise
4) Unjust enrichment

NO wrongful performance required

FYI If one of these factors is NOT present BUT still required by equity => Constructive Trust may still be imposed!!!

Question 2

What is the difference between Express Trust and Constructive Trust?*

Answer 2

Express Trust
- Parties sit down + negotiate trust agreement (generally written down)

Constructive (Implied-in-law) Trust

• Equitable remedy
• Prevention of unjust enrichment