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Non Express Constructive Trusts Notes

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This is an extract of our Non Express Constructive Trusts document, which we sell as part of our Trusts Notes collection written by the top tier of Griffith University students.

The following is a more accessble plain text extract of the PDF sample above, taken from our Trusts Notes. Due to the challenges of extracting text from PDFs, it will have odd formatting:
















NON--EXPRESS--
CONSTRUCTIVE
TRUSTS














TRUSTS | PAGE 70


























TRUSTS | PAGE 71 CONSTRUCTIVE TRUSTS

A trust imposed by the courts regardless of the parties' intentions
*
*


































* Institutional constructive trusts
o Trusts imposed by law in various institutional contexts
o The court declares that a constructive trust has arisen
Remedial constructive trusts
o Trusts imposed by law as a remedy
o Have no existence prior to the court imposing it
SS? Arises where there has been a break down of the
relationship between parties
SS? Equitable principles
Considerable overlap between the two types TRUSTS | PAGE 72 REMEDIAL CONSTRUCTIVE TRUSTS
* * * * Trusts imposed by the court as a remedy
Used to prevent legal owners from using their legal rights to deny the
rights of other interested parties
Doesn't exist prior to the court imposing it
o Equity will step in to protect
Family Law Act
o Issues between married couples/de facto etc Muchinski v Dodds
* De facto couple purchase land * Intention was to renovate the cottage on the land and to buy a house to
put on the land * Girlfriend paid the sum and included boyfriend's name on the lease * Parties separated without the intention fulfilled * Woman contributed $250,000 and improvement and claimed sole
beneficial ownership seeking declaration from the court and that man
held his share in trust for her
o Does the man have interest in the property? * HELD: Resulting trust in favour of the woman because she had paid the
purchase price however it was riveted as evidence shows that at the
time, the man was intended to have part beneficiary status of the
property
o Land in equal shares based on his promise to renovate and buy
a house * HELD: No resulting trust over man's shares of the property, but the
promise had not been fulfilled and so it would be inequitable to confer
on the man a beneficial interest - held respective legal interest and a
constructive trust was put in place over the property
o Was a constructive trust and parties were jointly able to pay
and the woman was entitled to the funds paid by the man * WAS A CONSTRUCTIVE TRUST WHERE MAN HELD INTEREST
SUBJECT TO PAYING BACK HIS SHARE
o Deane J: issue with categories of constructive trust










TRUSTS | PAGE 73

Baumgartner v Baumgartner
Applied Muschinski v Dodds
* De facto relationship pooled income for living expenses including
house payments * Lived at the unit owned by the man which they sold when they
acquired the house - exclusively in his name, but used net proceeds of
unit to buy house * Income was 55%/45% in favour of the man * Separated and the man asserted the land was his sole property
o Legal title only in his name * Whether she had any interest in the subject property? * HELD: Man held house on constructive trust for both of them in the
proportions they had previously done (55/45) subject to the net
proceeds of the unit
* Cases can be considered more broadly in cases where it would be
inequitable for the legal interest to be maintained, the constructive trust
will recognise underlying equitable interests
o Two friends in an arrangement/business partners in a joint
venture

What are the underlying justifications to establish a remedial constructive trust?
* Unconscionability
o For remedial constructive trusts, there needs to be proof of
unconscionable conduct
SS? Assertion to or denial of one party's equitable interest in
property by the other party * Muschinski and Baumgartner
o Not just about fairness, although it is relevant * Contributions
o Not just contributions to purchase, (as per resulting trusts)
o Can include homemaker/parent roles etc.
o Not just financial
SS? Baumgartner v Baumgartner








TRUSTS | PAGE 74

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