Constructive Trust in UK Law

Leading Cases
  • Bristol and West Building Society v Mothew
    • Court of Appeal
    • 24 Jul 1996

    A fiduciary is someone who has undertaken to act for or on behalf of another in a particular matter in circumstances which give rise to a relationship of trust and confidence. A fiduciary must act in good faith; he must not make a profit out of his trust; he must not place himself in a position where his duty and his interest may conflict; he may not act for his own benefit or the benefit of a third person without the informed consent of his principal.

  • Lloyds Bank Plc v Rosset and Others
    • House of Lords
    • 08 Mai 1990

    The first and fundamental question which must always be resolved is whether, independently of any inference to be drawn from the conduct of the parties in the course of sharing the house as their home and managing their joint affairs, there has at any time prior to acquisition, or exceptionally at some later date, been any agreement, arrangement or understanding reached between them that the property is to be shared beneficially.

    In this situation direct contributions to the purchase price by the partner who is not the legal owner, whether initially or by payment of mortgage instalments, will readily justify the inference necessary to the creation of a constructive trust.

  • Gissing v Gissing
    • House of Lords
    • 07 Jul 1970

    A resulting, implied or constructive trust—and it is unnecessary for present purposes to distinguish between these three classes of trust—is created by a transaction between the trustee and the cestui qui trust in connection with the acquisition by the trustee of a legal estate in land, whenever the trustee has so conducted himself that it would be inequitable to allow him to deny to the cestui qui trust a beneficial interest in the land acquired.

  • Oxley v Hiscock
    • Court of Appeal
    • 06 Mai 2004

    But, in a case where there is no evidence of any discussion between them as to the amount of the share which each was to have – and even in a case where the evidence is that there was no discussion on that point – the question still requires an answer. It must now be accepted that (at least in this Court and below) the answer is that each is entitled to that share which the court considers fair having regard to the whole course of dealing between them in relation to the property.

  • Westdeutsche Landesbank Girozentrale v Islington London Borough Council [QBD (Comm)]
    • House of Lords
    • 07 Jun 1996,07 Jun 1996

    Although it is difficult to find clear authority for the proposition, when property is obtained by fraud equity imposes a constructive trust on the fraudulent recipient: the property is recoverable and traceable in equity. Thus, an infant who has obtained property by fraud is bound in equity to restore it: Stocks v. Wilson [1913] 2 K.B. 235. 244; R. Leslie Ltd. v. Shiell [1914] 3 K.B. 607.

  • Hussey v Palmer
    • Court of Appeal
    • 22 Jun 1972

    By whatever name it is described, it is a trust imposed by law whenever justice and good conscience require it. It is a liberal process, founded upon large principles of equity, to be applied in oases where the defendant cannot conscientiously keep the property for himself alone, but ought to allow another to have the property or a share in it. It is an equitable remedy by which the Court can enable an aggrieved party to obtain restitution.

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Books & Journal Articles
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Law Firm Commentaries
  • When is suspending an employee a breach of trust and confidence?
    • JD Supra United Kingdom
    • Dentons
    • 27 de Fevereiro de 2020
    Suspension can be a very useful tool for employers. However, in certain circumstances it can amount to a breach of trust and confidence, which would then allow the suspended employee to resign and ...
    ...... circumstances it can amount to a breach of trust and confidence, which would then allow the suspended employee to resign and claim constructive unfair dismissal. The recent case of Harrison v. Barking, Havering & Redbridge University Hospitals NHS Trust (the Trust) has served as a useful ......
  • Don’t Keep Your Employees in Suspense
    • JD Supra United Kingdom
    • Dorsey & Whitney LLP
    • 01 de Novembro de 2019
    UK employers should proceed with caution when suspending employees, and always consider carefully whether taking such action is appropriate in the circumstances, as highlighted by the recent case i...
    ...... out an investigation and she subsequently resigned, claiming constructive dismissal. The employer argued that suspension was necessary to protect ... suspending Ms Gyftaki, her employer had breached the implied duty of trust and confidence that exists in all employment contracts, allowing Ms ......
  • Constructive Trusts: The Lurking Danger
    • Mondaq United Kingdom
    • 25 de Março de 2009
  • A Lidl More Certainty In Commercial Negotiations
    • Mondaq UK
    • 06 de Junho de 2018
    ......In such circumstances, a constructive trust may arise. This was the case in the Banner Homes Holdings Ltd v ......
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