In re Esteem Settlement v [2002] JLR 53 (17 January 2002)

In re Esteem Settlement v [2002] JLR 53 (17 January 2002)

A constructive trust is imposed on property or profit obtained by fraud where a pre-existing fiduciary relationship exists between the defrauder and the victim, making the victim a beneficiary with an equitable proprietary interest and the right to trace funds.

Citation
[2002] JLR 53
Parties
Respondent: Esteem Settlement
Jurisdiction
Jersey
Judgment Date
17 January 2002
Procedural Posture
Trusts / Judgment
Outcome
Constructive trust imposed
Legal Topics
Constructive Trusts, Remedial Constructive Trusts, Fraud, Tracing
Trusts Equity Constructive Trusts Remedial Constructive Trusts Fraud Tracing

Case Brief

Summary, issues, holding and outcome

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Parties

Esteem Settlement

Respondent

Procedural Posture

Trusts / Judgment

Legal Issues

  1. 1 Whether a constructive trust can be imposed on property or profit obtained by fraud where there is a pre-existing fiduciary relationship between the defrauder and the victim
  2. 2 Whether the victim becomes a beneficiary of the trust with an equitable proprietary interest in the trust property
  3. 3 Whether the victim is entitled to trace funds to recover a proprietary interest

Ratio Decidendi

A constructive trust is imposed on property or profit obtained by fraud where a pre-existing fiduciary relationship exists between the defrauder and the victim, making the victim a beneficiary with an equitable proprietary interest and the right to trace funds.

Court Disposition

Constructive trust imposed

Orders

  • Victim recognized as beneficiary with equitable proprietary interest
  • Victim entitled to trace funds to recover proprietary interest