Particular remedies in restitution

Question 1

constructive trust

Answer 1

π can show P’s property was used to acquire an asset D is holding as D’s own.

Question 2

Equitable lien:

Answer 2

π can show π’s property was used to improve an asset D is holding as D’s own OR π can show P’s property was used to acquire an asset D is holding as D’s own and a constructive trust would be undesirable or unfair.

Question 3

Subrogation:

Answer 3

P can show P’s property was used to discharge an obligation previously owed by D.

Question 4

Effect===Constructive trust:

Answer 4

P gets ownership of the asset. Treated as payment in full of traced amount. P cannot sue for any deficiency.

Question 5

Effect ====Equitable lien:

Answer 5

P becomes a lienholder against the asset and therefore can be paid out of the proceeds. Treated as partial payment so P can sue for any deficiency.

Question 6

Effect====Subrogation:

Answer 6

P obtains the former creditor’s rights, whatever those rights were. Valuable only if creditor had a secured right.