Can a stranger to a trust be held liable as a constructive trustee for breach of trust?

British Columbia, Canada


The following excerpt is from Vancouver Coastal Health Authority v Moscipan, 2017 BCSC 2339 (CanLII):

There are three ways in which a stranger to a trust can be held liable as a constructive trustee for breach of trust. First, a stranger to the trust can be liable as a trustee de son tort. Secondly, a stranger to the trust can be liable for breach of trust by knowingly assisting in a fraudulent and dishonest design on the part of the trustees (“knowing assistance”). Thirdly, liability may be imposed on a stranger to the trust who is in receipt and chargeable with trust property (“knowing receipt”; see Air Canada v. M & L Travel Ltd., supra, at pp. 809-11).

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