What is the proprietary interest justification and what is the effect on constructive trust?

Alberta, Canada


The following excerpt is from 1003166 Alberta Ltd. v. 868609 Alberta Ltd., 2005 ABQB 729 (CanLII):

As to the proprietary interest justification, the author mentions Sorochan as a useful basis for deciding whether particular conduct should give right to a remedial constructive trust. Our Court of Appeal has recently reviewed the principles in Sorochan; in Panara, it makes the following comments: Three elements are necessary to establish a right to claim relief based on unjust enrichment: an enrichment, a corresponding deprivation, and the absence of any juristic reason for the enrichment: Pettkus, supra at 848; Sorochan v. Sorochan, 1986 CanLII 23 (SCC), [1986] 2 S.C.R. 38 at 44 ("Sorochan"); Peter v. Beblow, 1993 CanLII 126 (SCC), [1993] 1 S.C.R. 980 at 987 ("Peter"). It is not enough to establish that a benefit has been conferred; the benefit must be accompanied by a corresponding deprivation, in circumstances that would render retention of the benefit unjust: Pettkus, ibid.

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