LEGAL PRINCIPLE: EQUITY AND TRUSTS — Resulting Trust — Necessity for Pleading and Proof
PRINCIPLE STATEMENT
An implied trust is one founded upon the unexpressed but presumed intention of the settlor. Such trusts are also referred to as 'resulting' because the beneficial interest in the property comes back or results to the person who provided the property. It is clear from the rules of court that breach of trust shall be pleaded. There is no such pleading in the statement of defence and that is prejudicial to the case of the respondent.
RATIO DECIDENDI (SOURCE)
Per Tobi, JSC, in Ezeanah v. Atta (2004) NLC-2262000(SC) at pp. 19–20; Paras E–C.
"An implied trust is one founded upon the unexpressed but presumed intention of the settlor. Such trusts are also referred to as 'resulting' because the beneficial interest in the property comes back or results to the person who provided the property or to his estate. … It is clear from the wordings of Order 25 rule 5(1) of the rules of court that the breach of trust shall be pleaded. There is no such pleading in the statement of defence and that is prejudicial to the case of the respondent."
EXPLANATION / SCOPE
Resulting trust arises from presumed intention where property is provided by one party. Breach of trust must be pleaded specifically in the defence. Failure to plead resulting trust or breach is prejudicial. The principle applies to equity and trusts litigation. The rule ensures fair notice of trust claims. The court will not consider unpleaded trust issues. Proper pleading is essential for trust disputes.
