Can a fiduciary duty arise as a result of the imposition of a constructive trust?

Ontario, Canada


The following excerpt is from Caja Paraguaya De Jubilaciones Y Pensiones Del Personal De Itaipu Binacional v. Garcia, ONSC, 2018 ONSC 5379 (CanLII):

A fiduciary duty may also arise as a result of the imposition of a constructive trust. In Soulos v. Korkontzilas, [1997] 2 SCR 217, 1997 CanLII 346 (SCC), McLachlin J. writing for the majority, summarized the constructive trusts (at para. 17) as: an ancient and eclectic institution imposed by law not only to remedy unjust enrichment, but to hold persons in different situations to high standards of trust and probity and prevent them from retaining property which in “good conscience” they should not be permitted to retain. This served the end, not only of doing justice in the case before the court, but of protecting relationships of trust and the institutions that depend on these relationships.

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