EQUITY AND TRUSTS — Constructive Trusts — Transfer of Constructive Trust — Revocation of Original Property Extinguishes Constructive Trust
Ratio Decidendi
Per Mukhtar, JSC, in Ibekwe v. Nwosu (2011) NLC-123-108-2006(SC) at p. 11; Paras A—C:
"However, with the revocation of Exhibit B the appellant and the respondent had their rights to that property extinguished and all they could claim was compensation for improvement on the land. I cannot see any bases in law or equity for the position of the appellant that the interest in Exhibit B should automatically transfer to the new allocation Exhibit A."
Explanation / Scope
This principle establishes that where the original property is revoked, the rights of the parties are extinguished, and any constructive trust over it cannot automatically transfer to a new allocation. The principle applies where property is revoked and reallocated. It ensures that rights are not automatically transferred. The principle reflects the limits of constructive trust. It prevents unjust claims. The court must require a basis for transfer. The principle provides guidance on constructive trusts.