Restitution Remedies Flashcards
Replevin, Money Judgment, Ejectment, Constructive Trust, Equitable Lean, Purchase Money Trust
What is a constructive trust?
A judicially created remedy that imposes a duty to convey property to the plaintiff if the defendant would be unjustfully enriched by keeping it.
What are the elements of a constructive trust?
1) Defendant holds title to property at issue
2) Retention of the property would unjustly enrich the defendant
3) Legal remedy is inadequate
Under a constructive trust, does plaintiff enjoy the increase in value of the property?
Yes; however, defendant is not liable for decrease in value.
What is an equitable lean?
A judicially created remedy that imposes a lien on defendant’s property.
Not taking ownership, but a creditor-like interest.
What are the elements of an equitable lien?
1) Defendant holds title to property at issue
2) Retention of the property would unjustly enrich the defendant
3) Legal remedy is inadequate
Under an equitable lien, does plaintiff enjoy the increase in value of the property?
No, although would be entitled to any decrease in value if the money obtained from the property does not cover what the plaintiff provided.
Also known as Additional Satisfaction.
What is tracing and how does it function for constructive trusts/equitable leans?
A plaintiff can trace his property from it’s original form to current form.
EX: The property was a house that has been sole. However, the plaintiff can trace the house to the money obtained from the sale.
What happens if the defendant does not hold the property subject to the constructive trust/equitable lean?
May be brought against the third party that now possesses the property, unless they are a bona fide purchaser
[AKA, no knowledge of defendant’s wrongdoing]
