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WHAT CONSTITUTES A RESULTING TRUST – CANNOT RELY ON RESULTING TRUST IF NOT PLEADED

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For the definition of what constitutes resulting trust see the case of Shephard vs. Cartwright (1995) AC 431 at 445. See also Black’s Law Dictionary, 6th edition at page 1315. As clearly illustrated in the leading judgment of my learned brother, Tobi, JSC, there are no hard and fast rules about what amounts to resulting trust especially as it relates to land. Where it arises, the claimant of the piece of land must prove by hard and concrete evidence that he actually owned and/or was entitled to the land but voluntarily or involuntarily opted that the Title Deed or Deed of Assignment be made in favour of another in anticipation of a marriage of whatever the case may be. Where a party as in the instant case, fails to properly plead the issue of resulting trust (or any other trust) he cannot raise the issue at the address stage or on appeal as the evidence or arguments or submissions on facts not hitherto pleaded, go to no issue.

— Onu, JSC. Ezennah v Atta (2004) – SC.226/2000

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RESULTING TRUST IS TRUST IMPLICIT IN THE CONDUCT OF PARTIES

Resulting Trust is a trust that can be readily deduced as being implicit in the conduct of parties but without express intent. Black’s Law Dictionary relies on the definition of a resulting trust as made out in the case of Lifemark Corp. vs. Newit Jx. App. 14 Dist, 655 SW. 2d 310, 316 as a’ “trust that arises where a person makes or causes to be made a disposition of property under circumstances which raise an inference that he does not intend that person taking or holding that property should have the beneficial interest therein, unless inference is rebutted or the beneficial interest is otherwise effectively disposed of’.

— Pats-Acholonu, JSC. Ezennah v Atta (2004) – SC.226/2000

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IMPLIED TRUST

RE: KAYFOLD LTD (In liquidation) 1975 1 All E.R. In that case the Managing Director of the company concerned about protecting customers who had send in money was advised to open a special account called a “customers Trust Deposit Account” into which such customers money will be deposed. The manager rather than open the account, the “Managing director agreed with his Banker to use an existing formal deposit account. After the customers funds had been deposited in the said account for the agreed purpose only, the Bank sought to apply those funds to other purposes. The court held that a trust had been created in favour of the customers of the company as the three certainties were present to create a trust.

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STRANGER LIABLE AS CONSTRUCTIVE TRUSTEE

If a stranger to a trust (a) receives and becomes chargeable with some part of the trust fund or (b) assists the trustees of a trust with knowledge of the facts in a dishonest design on the part of the trustees to misapply some part of a trust fund, he is liable as a constructive trustee (Barnes v Addy ((1874) LR 9 Ch App 244 at 251–252) per Lord Selborne LC).

— Buckley LJ. Belmont v Williams [1980] 1 ALL ER 393

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STATE LANDS ARE FOR PUBLIC PURPOSES – SUCH LANDS ARE HELD IN TRUST

Their powers under the law are limited to leasing them to diverse persons, and accepting forfeitures and surrenders of leases. There appears to be substance in this contention. State lands in Nigeria invariably originate from compulsory acquisitions of such lands from individuals or communities for public purposes. Such lands are held in trust by the acquiring government for use for the public purpose for which the land was acquired and in accordance with the public policy of the state as enshrined in the laws of the state.

– Nnaemeka-agu, JSC. Ude v. Nwara (1993)

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TYPES OF TRUST – WHERE IMPLIED TRUST WILL ARISE

To this end, there are Express Trusts, Implied or Resulting Trusts and Constructive Trusts. Express Trusts arise when the owner declares himself a trustee of the property for the benefit of another person or vests property in another person as trustee for the benefit of another person. Implied or Resulting Trust arise from the presumed intention of the owner, and the presumed intention arises by operation of law not by agreement of parties Constructive Trusts are trusts imposed by equity regardless of the intention of the owner of the property, where it will be unconscionable for the “apparent beneficial owner” or trustee to hold the property for his benefit- see Equity and Trust in Nigeria 2nd Ed. by J. O. Fabunmi. We are concerned with implied or resulting trusts, which may arise in the following circumstances – (i) Where an express trusts fails (ii) Where the beneficial interest under an express trust is not fully disposed of or exhausted. (iii) Where there is a purchase in the name of another or where a person makes a voluntary conveyance of his property to another.

— A.A. Augie, JSC. Huebner v Aeronautical Ind. Eng. (2017) – SC.198/2006

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CONSTRUCTIVE TRUSTS IS AN EQUITABLE REMEDY IMPOSED – NOT BASED ON PRIOR INTENTION

On the other hand, 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: Beatty v. Gygenheim Exploration Co. 122 N. E 378, 380 (N.Y 1919). See: Black’s Law Dictionary Ninth Edition, page 1649. In Kotoye v. Saraki (supra) at page 443, this court pronounced that constructive trust, as in this case, is imposed by equity on the ground of conscience and it is not based on the prior or presumed intention of the parties. See: also Ughutevbe v. Shonowo (2004) 16 NWLR (Pt. 899) 300; (2004) WRN (vol. 32) 27.

— A. Fabiyi, J.S.C. Ibekwe v. Nwosu (2011) – SC.108/2006

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