Equitable Restitution

Question 1

What are the two equitable restitution reliefs ?

Answer 1

1. Constructive Trusts

2. Equitable liens

Question 2

Constructive Trust

Answer 2

An order to hold a wrongfully derived property in trust to prevent unjust enrichment

Question 3

What are the effects of a constructive trust?

Answer 3

1. The defendant must transfer the title to the property
2. Substitute property , and
3. Any proceeds from the property

Question 4

When can a constructive trust not be obtained for a improperly possessed property?

Answer 4

1. If proceeds from sale of wrongfully obtained property gets merged into a rightfully owned property by the defendant
2. If the property is sold to a bona fide purchaser - can’t get back property buy can get the proceeds from the sale

Question 5

Equitable lien ?

Answer 5

A lien on the property that is in the improper title of the defendant

Question 6

What’s difference between equitable lien and constructive trust?

Answer 6

In equitable lien the plaintiff doesn’t get title to property, substitute propert, or the proceed

Plaintiff though may force sale and receive proceeds

Plaintiff also becomes a secured creditor ; has priority