News & Analysis as of

Constructive Trusts

Charles E. Rounds, Jr. - Suffolk University...

Judicial imposition of a constructive trust on traceable property for benefit of a victim of unjust enrichment freezes property,...

Assume wrongdoer procures title to a traceable portfolio of stocks by fraud, duress, or undue influence from rightful owner and then transfers title on to an innocent third party for nominal consideration, i.e. to a non-BFP....more

Freiberger Haber LLP

Court Rejects Plaintiff’s Attempt to Void Release Based on Fraud

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It is well settled that a “valid release constitutes a complete bar to an action on a claim which is the subject of the release.” “[A] release that, by its terms, extinguishes liability on any and all claims arising in...more

Charles E. Rounds, Jr. - Suffolk University...

Traceable economic value of fraudulently acquired property may be made the subject of a constructive trust: Two procedural...

Assume fraudulent representations by the owner of a residence with multiple hidden material defects that the defects were non-existent induce Jones to purchase residence. Call that residence the “old residence.” The unjustly...more

Farrell Fritz, P.C.

Constructive Trust Claims

Farrell Fritz, P.C. on

Constructive trust claims regularly arise in trusts and estates litigation.  Based upon a recent decision that Suffolk County Surrogate Vincent J. Messina, Jr. issued, in which the Surrogate found that a constructive trust...more

Fox Rothschild LLP

Delaware Court of Chancery Underscores Limits on Trust Decanting

Fox Rothschild LLP on

Delaware’s Court of Chancery has again emphasized that decanting is a limited tool that must be grounded in actual authority under the governing instrument and statute. In a recent memorandum opinion arising out of a...more

Charles E. Rounds, Jr. - Suffolk University...

Minnesota Supreme Court’s decision in the Johnson Trust Case (2025) is doctrinally nonsensical in that it is unsupported by equity...

Assume a parcel of real estate was the subject of an irrevocable express trust until the trustee in breach of trust deeded the title to himself, ostensibly free of trust. Our self-dealing trustee is hereinafter referred to as...more

Cooley LLP

UK Supreme Court Clarifies Scope of Dishonest Assistance Liability

Cooley LLP on

The UK Supreme Court’s decision in Stevens v. Hotel Portfolio II UK Ltd has clarified the liability of dishonest assistants in cases of breaches of a constructive trust of secret profits. It also provides helpful guidance on...more

BCLP

Navigating Liability for Dishonest Assistance: An Account of Profit, Loss and Constructive Trusts - Supreme Court Judgment:...

BCLP on

The UK Supreme Court has recently addressed novel issues concerning liability for dishonest assistance in respect of a breach of fiduciary duty, involving the acquisition and dissipation of unauthorised profits....more

Hogan Lovells

DAM(L’d) if you do, DAM(L’d) if you don’t – What should regulated firms be thinking about now the PoCA consent threshold has been...

Hogan Lovells on

On 10 July 2025, the UK raised the threshold below which certain regulated firms can perform acts that would otherwise constitute a money laundering offence. The new threshold is £3,000. This is the second rise in the...more

BCLP

Revisiting Vesting Orders in Internet Scam Cases

BCLP on

In our previous article titled Fraud Cases: Hong Kong Court’s Jurisdiction on the Grant of Vesting Orders, our team discussed the remedy of vesting orders in providing relief to victims of internet fraud in recovering their...more

Smith Debnam Narron Drake Saintsing & Myers,...

Buying? Not Married? Have You Considered Your Options for Real Estate Ownership and What Happens if You Break Up?

Purchasing a home is a significant financial investment, introducing unique legal considerations for unmarried couples. According to the National Association of Realtors’ 2024 Profile of Home Buyers and Sellers, unmarried...more

Downey Brand LLP

So What is a Trust, Really? Newell v. Superior Court and the Worst Party Game Ever

Downey Brand LLP on

Hey everybody – it’s January! How was your New Year’s Eve? How did you celebrate? Did you go to a party? Did you host a party? Were there games at your party? What kind of games? Charades? Jenga?  Maybe you went crazy and...more

Barnea Jaffa Lande & Co.

Unregulated Trust Mechanisms

We tend to think of a “trust” as a regulated contractual mechanism that people create through an agreement, a letter of authorization to a trustee etc. But is it possible to become part of a trust arrangement without it being...more

Winstead PC

Texas Supreme Court Reverses Order In Trust Dispute Granting A Constructive Trust

Winstead PC on

In In re Trust A & Trust C, a beneficiary sued a trustee for breach of fiduciary duty and sought a constructive trust over assets that were transferred out of the trust. 690 S.W.3d 80 (Tex. 2024)....more

Charles E. Rounds, Jr. - Suffolk University...

“Clearing” the constructive trustee’s legal title: The doctrinal and practical considerations

The court in Freeport-McMoRan Oil & Gas LLC v. 1776 Energy Partners, LLC, 672 S.W.3d 391 (Tex. 2023) explained that “constructive trusts, being remedial in character, have the very broad function of redressing wrong or...more

Fox Rothschild LLP

The Black Hole is Closed – New Law Permits Equitable Distribution When Party Dies While a Divorce is Pending

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What happens when a party dies in the middle of divorce? Under the law, the divorce action abates and the matter is over. In many cases, that is to the benefit of the surviving spouse because, in most cases, they would...more

Gray Reed

Live-In Mom Killed Daughter’s Father: Her Rights to the Child’s Inheritance?

Gray Reed on

Kittie started dating her daughter’s boyfriend Butch when he was 17 years old. They apparently dated for over twenty years, during which time Kittie purchased him a house to “use.” Butch later moved into the house with his...more

Freiberger Haber LLP

Fraudulent Inducement, Merger Clauses and Duplication

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A couple of months ago, we examined NW Media Holdings Corp. v. IBT Media Inc., 2023 N.Y. Slip Op. 30875(U) (Sup. Ct., N.Y. County Mar. 22, 2023) (here), a case in which a lower court addressed the question whether the...more

Littler

Ontario, Canada Appeal Court Upholds Refusal to Impose Constructive Trust Over Proceeds of Sale of Property Owned by Defrauding...

Littler on

A recent Ontario Court of Appeal (OCA) decision demonstrates the process an employer may be expected to undertake to recover employee-stolen funds when the proceeds of the fraud are traced to the assets of a “stranger to the...more

Paul Hastings LLP

Financing the Middleman: Traps for the Unwary When Financing an Intermediary Business

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Lenders relying on a security interest in the accounts receivable of borrowers need to use caution when financing an intermediary business that could be subject to express or constructive trusts. If an intermediary business...more

A&O Shearman

An Interesting Case On "Common Intention" Constructive Trusts

A&O Shearman on

Hudson v Hathway [2023] 2 W.L.R. 1227 ([2022]EWCA Civ 1648) is, even to a M&A lawyer such as myself, a particularly interesting case, despite being: (i) being decided at the end of last year, rather than just last week (my...more

Gray Reed

Lessee Can’t Satisfy Texas Supreme Court’s Force Majeure Requirements

Gray Reed on

Imagine these facts in a force majeure dispute (as presented in Point Energy Partners Permian LLC et al. v. MRC Permian Company). Lessee (MRC) invokes the force majeure provision of an oil and gas lease, asserting that...more

Walkers

Learning from Mistakes: Imposing Constructive Trusts over Mistaken Payments

Walkers on

Synopsis In the recent judgment of Re Premier Assurance Group SPC Ltd. (in Official Liquidation) (unreported, Smellie C.J., Cause No. FSD 264 of 2020 (ASCJ), 7 April 2022), the Grand Court of the Cayman Islands sanctioned a...more

Farrell Fritz, P.C.

Conflicts of Laws and the Internal Affairs Doctrine

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The legal concept of “conflicts of laws” is difficult, to say the least, confounding even seasoned litigators and judges, with bulky treatises and entire law school classes devoted to the subject....more

Patton Sullivan Brodehl LLP

Assertion of “Constructive Trust” Can Sometimes Support a Lis Pendens

One of the tools available in the real estate litigation attorney’s toolbox is a lis pendens, also known as a notice of pending action. A lis pendens is a document recorded at the County Recorder’s Office providing...more

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