What Is a Constructive Trust in Florida?
Constructive trusts are solutions for parties deprived of their property rights due to the misconduct of another. Misconduct can be the result of fraud or be unintentional. Either way, constructive trusts provide restitution to the party deprived of their rights. Florida has its own set of laws governing when to use a constructive trust.
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Honest Mistakes Are Still Grounds for Constructive Trust
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If a person accidentally pays another party, the recipient of the payment is still liable to pay restitution. The party that made the mistake can still seek a constructive trust to get the money back. The trust requires the recipient to pay back the money he received, even for a simple misunderstanding on the part of the other party.
Unjust Enrichment
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Unjust enrichment is when one party profits unfairly at the expense of another. Unjust enrichment is an essential part of any constructive trust. In the case Collison versus Miller, Sharon Collison allegedly received property belonging to Phillip Miller. Phillip Miller argued that Collison had no right to his property and sought a constructive trust against her. The court allowed the motion to go to trial because Miller had enough evidence to support an unjust enrichment claim.
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Constructive Trusts Are Limited by State Lines
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The court of Florida can issue a constructive trust against property violations taking place within the state. However, sometimes the unjust act began in another state and the unjust enrichment continued in Florida. One case that legal scholars discussed is what should happen if a man commits fraud in California and uses the proceeds to purchase a home in Florida. In this situation, courts in both states ruled that the California courts cannot determine the title to Florida property and the Florida courts would probably have to be aware of a ruling of fraud in the case of California.
Profits Belong to the Owner of Property
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If someone has possession over property belonging to someone else, all profits they make through the party belong to the other party. For example, if someone has control over someone else's house, any rent they collect legally belongs to the party in legal possession of the residence. In a constructive settlement, they will have to forfeit any profits they made.
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References
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