EQUITY AND TRUSTS — Constructive Trusts — Definition and Nature — Equitable Remedy Against Wrongdoing
Ratio Decidendi
Per Fabiyi, JSC, in Ibekwe v. Nwosu (2011) NLC-123-108-2006(SC) at pp. 3—4; Paras E—A:
"A constructive trust is an equitable remedy that a court imposes against one who has obtained property by wrong doing. It is imposed to prevent unjust enrichment and creates no fiduciary relationship. It is also termed implied trust, involuntary trust, trust ex delicto; trust ex maleficio, remedial trust, trust in invitum; trust de son tort. A constructive trust is the formula through which the conscience of equity finds expression. When property has been acquired in such circumstances that the holders of the legal title may not in good conscience retain the beneficial interest, equity converts him into a trustee."
Explanation / Scope
This principle defines a constructive trust as an equitable remedy imposed against one who obtains property by wrongdoing, to prevent unjust enrichment. It creates no fiduciary relationship. The principle applies where property is obtained by wrongdoing. It ensures that the wrongdoer does not retain the benefit. The principle reflects the conscience of equity. The court may impose a constructive trust. The principle provides guidance on constructive trusts.