It is an equitable remedy resembling a trust (implied trust) imposed by a court to benefit a party that has been wrongfully deprived of its rights due to either a person obtaining or holding legal right to property which they should not possess due to unjust enrichment or interference.
n. when a person has title to property and/or takes possession of it under circumstances in which he/she is holding it for another, even though there is no formal trust document or agreement, the court may determine that the holder of the title holds it as constructive trustee for the benefit of the intended owner. A constructive trust in favor of the aggrieved party can be imposed on such property, so long as it remains in the hands of the wrongdoer or any person to whom the wrongdoer transfers it who is not a bona fide purchaser. In sum, the constructive trust is a remedy that may be applied in a variety of situations where equity demands, despite the feasibility of strictly satisfying its elements, and should be kept in mind as a potential claim to correct a wrong that may not fit squarely within any other cause of action.  Constructive Trust. A constructive trust is not an actual trust by the traditional definition. It is a legal fiction that is used as a remedy for unjust enrichment. Hence, there is no trustee, but the constructive trust orders the person who would otherwise be unjustly enriched to transfer the property to the intended party. wex: COMMERCE The constructive trust is basically a legal concept that has been created by the courts against someone who – through wrongdoing, fraud, or other unconscionable act, obtains or holds legal rights to property that he or she is not entitled to keep or enjoy. A constructive trust is often used to prevent undue enrichment, and undue enrichment is present in almost all cases where a constructive trust has been imposed. Nonetheless, it is not a requirement that a court of law finds that the person whose property or assets is subjected to a constructive trust has acted wrongly. Constructive Trust Law & Legal Definition. A constructive trust is a legal concept created by the courts against one who, by fraud, wrongdoing, or any other unconscionable conduct, either has obtained or holds legal right to property which he ought not to, in good conscience, keep and enjoy. A constructive trust is used to prevent unjust enrichment.  Constructive trusts in English law are a form of trust created by the courts primarily where the defendant has dealt with property in an unconscionable manner, but also in other circumstances; the property will be held in constructive trust for the harmed party, obliging the defendant to look after it. Constructive trusts, under Section 53(2) of the Law of Property Act 1925, do not require any particular formalities on creation, unlike express trusts. For them to be valid, however, the defendant (or trustee of the constructive trust) must know that he has dealt with property in an unconscionable manner. A constructive trust does not arise because of the expressed intent of a settlor, one who establishes a trust. It is created by a court whenever title to property is held by a person who, in fairness, should not be permitted to retain it. A constructive trust in favor of the aggrieved party can be imposed on such property, so long as it remains in the hands of the wrongdoer or any person to whom the wrongdoer transfers it who is not a bona fide purchaser. A constructive trust is an equitable remedy resembling a trust (implied trust) imposed by a court to benefit a party that has been wrongfully deprived of its rights due to either a person obtaining or holding legal right to property which they should not possess due to unjust enrichment or interference. In a constructive trust the defendant breaches a duty owed to the plaintiff. The most common such breach is a breach of fiduciary duty. A controversial example is the case of Attorney-General for Hong Kong v Reid, in which a senior prosecutor took bribes not to prosecute certain offenders. In a nutshell, the constructive trust can be thought of as a trust that is created by the court to benefit a party that has been wrongfully deprived of its rights. The following instances may cause a court to order that assets and/or property are placed in a constructive trust : * A mistake, duress, or undue influence. A constructive trust is often used to prevent undue enrichment, and undue enrichment is present in almost all cases where a constructive trust has been imposed. Nonetheless, it is not a requirement that a court of law finds that the person whose property or assets is subjected to a constructive trust has acted wrongly.
http://legal-dictionary.thefreedictionary.com/Constructive+Trust http://www.nyestatelitigationblog.com/2011/03/articles/trusts/what-is-a-constructive-trust/ https://www.law.cornell.edu/wex/constructive_trust http://www.estateplanners.com/articles/what-is-a-constructive-trust-2/ http://definitions.uslegal.com/c/constructive-trust/ https://en.wikipedia.org/wiki/Constructive_trusts_in_English_law http://legal-dictionary.thefreedictionary.com/Constructive+Trust https://en.wikipedia.org/wiki/Constructive_trust http://www.estateplanners.com/articles/what-is-a-constructive-trust-2/
what is a constructive trustee