What is the test for the use of a constructive trust to redress the unjust enrichment of one person by another through their contribution to a common law relationship?
British Columbia, Canada
The following excerpt is from Smith v. Lam, 1999 CanLII 15131 (BC SC):
I have referred already to the case of Pettkus v. Becker. It is the leading case on the use of a constructive trust to redress the unjust enrichment of one person by another through the contribution of unremunerated work in a common law relationship. The remedy may be applied in other cases where one person has been unjustly enriched at the expense of another. For it to be applied, there must be a causal relationship between the person's contribution and the benefit obtained by a defendant. There must be an unjust enrichment, characterised by a benefit conferred on the defendant, a corresponding detriment to the plaintiff and an absence of any juristic reason for the benefit.
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