What is the test for constructive trust in commonlaw relationships?
British Columbia, Canada
The following excerpt is from Cannaday v. Desmond, 1999 CanLII 6047 (BC SC):
The principle of constructive trust is available to aid unjust enrichment of one party by another. It has application in the appropriate circumstances to assets held by parties in commonlaw relationships. Constructive trusts do not arise of course because of the relationship but must be established by the person seeking the trust declaration. Pettkus v. Becker (1990), 1980 CanLII 22 (SCC), 19 R.F.L. (2d) 165 sets out the triparte test applied: (1)the claiming party must show the other party has been unjustly enriched; (2)the party who claims an unjust enrichment must show a corresponding deprivation; (3)there must be no juristic reason for the enrichment.
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