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Legal Terms - constructive trustee
a person who, via constructive trust, is the rightful owner of property. It is a trusteeship that is placed upon him because of his behavior, and he is not always subject to the same obligations and liabilities as the trustee of a *express trust. The constructive trustee might not be aware that he is holding the property in trust for someone else until the court determines that a constructive trust has been established. Long after the events or behavior giving birth to the obligation of trust occurred, a court order or declaration frequently establishes a person's status as a constructive trustee. A constructive trust established by an organization holds proprietary (or personal)
Repercussions begin to arise as soon as the behavior or situation that gave rise to the trusteeship occurs. Although the degree of his accountability may differ case-by-case based on the specifics of the property in question, the trustee will have an obligation to the trust.
The courts have frequently used the metaphor "liability to account as a constructive trustee" to describe the personal liability that results from the duty to *account when it is imposed upon a fiduciary for receiving an unauthorized profit, or upon a stranger for dishonest assistance or for receiving property in *breach of trust. This is frequently the result of the trustee never owning the contested property or ceasing to do so, and any fallout from the trust's funding providing a personal remedy against the trustee. It has been said that this phrase is confusing (Paragon Finance v. D B Thakerar & Co [1999] 1 All ER 400 (CA)).
Legal Terms - constructive trustee
a person who, via constructive trust, is the rightful owner of property. It is a trusteeship that is placed upon him because of his behavior, and he is not always subject to the same obligations and liabilities as the trustee of a *express trust. The constructive trustee might not be aware that he is holding the property in trust for someone else until the court determines that a constructive trust has been established. Long after the events or behavior giving birth to the obligation of trust occurred, a court order or declaration frequently establishes a person's status as a constructive trustee. A constructive trust established by an organization holds proprietary (or personal)
Repercussions begin to arise as soon as the behavior or situation that gave rise to the trusteeship occurs. Although the degree of his accountability may differ case-by-case based on the specifics of the property in question, the trustee will have an obligation to the trust.
The courts have frequently used the metaphor "liability to account as a constructive trustee" to describe the personal liability that results from the duty to *account when it is imposed upon a fiduciary for receiving an unauthorized profit, or upon a stranger for dishonest assistance or for receiving property in *breach of trust. This is frequently the result of the trustee never owning the contested property or ceasing to do so, and any fallout from the trust's funding providing a personal remedy against the trustee. It has been said that this phrase is confusing (Paragon Finance v. D B Thakerar & Co [1999] 1 All ER 400 (CA)).
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