What is the test for establishing a constructive trust?

Ontario, Canada


The following excerpt is from Letford v. Letford, 2000 CanLII 22453 (ON SC):

As usual, however, it is very important to understand these concepts accurately. One does not get two cracks at these very complex concepts. To restate the law as I understand it, a resulting trust will only arise where the imputation of intention is either reasonable or possible. One cannot imply an intention that the wife should have an interest if her conduct before or after the acquisition of the property is “wholly ambiguous” or its association with the alleged agreement “altogether tenuous”, (Becker v. Pettkus (supra) at screen 7 of 19, Quicklaw database) Talking about constructive trusts, the same court had this to say approximately two years earlier in Rathwell v. Rathwell, 1978 CanLII 3 (SCC), [1978] 2 S.CR. 436 (S.C.C.) at screen 39 of 77 Quicklaw database) The constructive trust, as so envisaged, comprehends the imposition of trust machinery by the court in order to achieve a result consonant with good conscience. As a matter of principle, the court will not allow any man unjustly to appropriate to himself the value earned by the labours of another.

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