The Doctrine of Constructive Trusts
The doctrine of constructive trusts occupies a central position within English equity, functioning as a judicial mechanism through which the courts intervene to prevent unconscionable conduct and unjust outcomes. Unlike express trusts, which depend upon the intention of the settlor, or resulting trusts, which arise from presumed intention, constructive trusts are imposed by operation of law irrespective of the parties’ wishes. Their primary purpose is not to give effect to intention but to prevent the legal owner of property from acting unconscionably by denying another’s beneficial interest. As such, constructive trusts are best understood as a remedial response to wrongdoing or inequity, reflecting equity’s long-standing concern with conscience and fairness. The theoretical foundation of constructive trusts lies in equity’s jurisdiction over conscience. This was articulated by Lord Browne-Wilkinson in Westdeutsche Landesbank Girozentrale v Islington LBC [1996] AC 669, where his ...
