Constructive Trusts / Equitable Liens

Question 1

Necessary for either remedy

Answer 1

1. Improperly acquired property

2. P has title to property

Question 2

Constructive Trust

Answer 2

D is forced to return property to P

Question 3

Equitable Lien

Answer 3

D is forced to sell property. P receives proceeds, up to FMV of property at time it was taken.

If proceeds are less that that value, P receives deficiency judgment for balance.

Question 4

Tracing

Answer 4

Is permitted, so remedy may be directed at property that is different from what was improperly acquired (i.e. someone trades wrongfully taken art for a car, tracing can get remedy to car).

Exception: BFP. If so, money damages is the remedy.