Constructive Trust in UK Law

Leading Cases
  • Lloyds Bank Plc v Rosset and Others
    • House of Lords
    • 08 May 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.

  • Bristol and West Building Society v Mothew
    • Court of Appeal (Civil Division)
    • 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. The distinguishing obligation of a fiduciary is the obligation of loyalty. The principal is entitled to the single-minded loyalty of his fiduciary. 2), he is not subject to fiduciary obligations because he is a fiduciary; it is because he is subject to them that he is a fiduciary.

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

    But the proprietary interest which equity is enforcing in such circumstances arises under a constructive, not a resulting, trust. 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.

  • Yaxley v Gotts and another
    • Court of Appeal (Civil Division)
    • 24 Jun 1999

    Plainly there are large areas where the two concepts do not overlap : when a landowner stands by while his neighbour mistakenly builds on the former's land the situation is far removed (except for the element of unconscionable conduct) from that of a fiduciary who derives an improper advantage from his client. But in the area of a joint enterprise for the acquisition of land (which may be, but is not necessarily, the matrimonial home) the two concepts coincide.

  • Oxley v Hiscock
    • Court of Appeal (Civil Division)
    • 06 May 2004

    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. includes the arrangements which they make from time to time in order to meet the outgoings (for example, mortgage contributions, council tax and utilities, repairs, insurance and housekeeping) which have to be met if they are to live in the property as their home.

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Legislation
  • Trustee Act 1925
    • UK Non-devolved
    • 1 de Enero de 1925
    ......to some interest in the property but holds. the property or some interest therein under. an express, implied or constructive trust;. . . the High Court and the Judge or Master in Lunacy shall, in accordance with rules to be made by the Lord Chancellor, have concurrent ......
  • Trusts of Land and Appointment of Trustees Act 1996
    • UK Non-devolved
    • 1 de Enero de 1996
    ...... . (a) is to any. description of trust (whether express, implied, resulting or. constructive), including a trust for sale and a bare trust, and. . . (b) includes a trust created, or arising, before the commencement of. this Act. . (3) ......
  • Settled Land Act 1925
    • UK Non-devolved
    • 1 de Enero de 1925
    ...... . (i) limited in trust for any persons by way of. succession; or. . . (ii) limited in trust ...includes an implied or constructive trust;. . . (xiii) ‘Lunatic’ includes a lunatic whether so found. ......
  • Trustee Act 1850
    • UK Non-devolved
    • 1 de Enero de 1850
    ...... conveyed by way of Mortgage; but, with this Exception, the Words ‘Trust’ and ‘Trustee’ shall extend to and include implied and constructive Trusts, and shall extend to and include Cases where the Trustee has some beneficial Estate or Interest in the Subject of the Trust, and shall extend ......
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Books & Journal Articles
  • The creation of express, resulting and constructive trust in banking transactions
    • Núm. 25-2, Mayo 2018
    • Journal of Financial Crime
    • 277-286
    Purpose: This paper aims to analyse the circumstances where an express, resulting or constructive trust may arise in banking transactions, taking in consideration relevant case law. Bankers in cert...
  • Buckland v Bournemouth University Higher Education Corp: Statutory Constructive Dismissal and the Implied Term of Mutual Trust and Confidence
    • Núm. 74-1, Enero 2011
    • The Modern Law Review
    The decision of the Court of Appeal in Buckland v Bournemouth University Higher Education Corp [2010] EWCA Civ 121; [2010] ICR 908; [2010] IRLR 445 is one which has ramifications for the common law...
  • Recovery from the Corrupt
    • Núm. 3-1, Febrero 1995
    • Journal of Financial Crime
    • 61-63
    A further illustration of the increasing grip of the law of equity in enabling monies that are part of a fraud to be recovered by the victim is provided by the Privy Council decision in Attorney‐Ge...
    ...... on the old established principles of equity have employed a constructive trust to recover monies that are the proceeds of fraud or are part of a ......
  • Constructive Trusts and Tracing
    • Núm. 2-3, Abril 1994
    • Journal of Financial Crime
    • 222-233
    Does the mere mention of a trust conjure up images of equity‐speak in favour of Great Aunt Maud? Does a constructive trust give you sick building syndrome? Does tracing send you back to the drawing...
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Law Firm Commentaries
  • When is suspending an employee a breach of trust and confidence?
    • JD Supra United Kingdom
    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
    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
  • A Lidl More Certainty In Commercial Negotiations
    • Mondaq UK
    ......In such circumstances, a constructive trust may arise. This was the case in the Banner Homes Holdings Ltd v ......
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