Reichmann v. Vered

Reichmann v. Vered

The constructive trust was a remedial security to ensure repayment and accounting; the appellant did not establish proprietary share ownership arising from the joint venture formation and elected to pursue and received an accounting and payments; having been paid, the proprietary interest in the shares was discharged and the trial judge did not err in dissolving the constructive trust and exercising his discretion.

Citation
C42790
Parties
Plaintiff (appellant): Albert Reichmann; Defendant (respondent): Zeev Vered; Defendant (respondent): Ron Engineering and Construction (International) Ltd.
Court
Court of Appeal for Ontario
Jurisdiction
Canada
Judgment Date
8 August 2006
Procedural Posture
Civil / Appeal From Superior Court of Justice Order; Motion to Discharge Constructive Trust
Outcome
Appeal dismissed; order dissolving the constructive trust upheld; costs awarded to respondents
Legal Topics
Constructive Trust Dissolution, Beneficiary Remedies, Accounting, Proprietary Vs Personal Claims, Discretionary Equitable Relief, Amalgamation and Use of Tax Losses, Election of Remedies, Disclosure Obligations
Source Language
English
Equity Trusts Joint Venture Contract Corporate Law Taxation Constructive Trust Dissolution Beneficiary Remedies +6 more

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Parties

Albert Reichmann

Plaintiff (appellant)

Zeev Vered

Defendant (respondent)

Ron Engineering and Construction (International) Ltd.

Defendant (respondent)

Procedural Posture

Civil / Appeal From Superior Court of Justice Order; Motion to Discharge Constructive Trust

Legal Issues

  1. 1 Whether the constructive trust on Ron International shares should be dissolved
  2. 2 Whether appellant held beneficial ownership of Ron International shares from formation of the joint venture
  3. 3 Whether receipt of an accounting and payment discharges proprietary claims in the subject matter of a constructive trust

Ratio Decidendi

The constructive trust was a remedial security to ensure repayment and accounting; the appellant did not establish proprietary share ownership arising from the joint venture formation and elected to pursue and received an accounting and payments; having been paid, the proprietary interest in the shares was discharged and the trial judge did not err in dissolving the constructive trust and exercising his discretion.

Court Disposition

Appeal dismissed; order dissolving the constructive trust upheld; costs awarded to respondents

Orders

  • Appeal dismissed
  • Order dissolving the constructive trust affirmed