Constructive Trust & Equitable Lien
Remedies · Lesson 06
Constructive Trust & Equitable Lien
這一課問的是：應否對財產推定信託或設衡平留置以救濟不當得利？
ActorActObjectStandardConsequence
Visual Scene · the picture in your head
Issue. Should the court impose a constructive trust or equitable lien on property to remedy unjust enrichment?
這一課問的是：應否對財產推定信託或設衡平留置以救濟不當得利？
Core Terminology · 7 must-know
Tap a card to flip and reveal the meaning.
constructive trust
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Equitable remedy: wrongdoer holds property in trust for victim.
推定信託。
equitable lien
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Charge on property to secure restitutionary claim.
衡平留置。
tracing
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Following plaintiff's value into specific property.
追蹤。
commingling
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Mixing plaintiff's funds with defendant's.
混同。
appreciation
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Increase in value of traced property — captured by constructive trust.
增值。
unjust enrichment basis
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Trust/lien arises from unjust enrichment doctrine.
不當得利基礎。
Issue · what this lesson is really about
Should the court impose a constructive trust or equitable lien on property to remedy unjust enrichment?
這一課問的是：應否對財產推定信託或設衡平留置以救濟不當得利？
Trigger words & phrases that should flag this issue:
wrongdoertraceablespecific propertyappreciatedcommingled
Expression Bank · how lawyers actually say it
Six function → sentence patterns. Use these in essay applications.
| Function | English sentence | 中文 |
|---|---|---|
| Apply CT | Constructive trust arises where D has unjustly acquired specific property traceable to P's value. | 推定信託：D 不當取得可追蹤至 P 之特定財產。 |
| Apply EL | Equitable lien attaches to property as security for restitution. | 衡平留置作為返還之擔保。 |
| Apply tracing | Tracing follows P's funds through transformations into specific property. | 追蹤穿越轉換至特定財產。 |
| Compare | Constructive trust captures appreciation; equitable lien limits to value extracted. | 推定信託得增值；衡平留置以投入價值為限。 |
Rule Sentence · the workhorse
A constructive trust imposes an equitable obligation on a wrongdoer to convey unjustly held property to the plaintiff, capturing any appreciation; an equitable lien attaches a charge on property as security for a restitutionary claim, limited to the value extracted from the plaintiff.
Sentence Anatomy · 5 roles, 5 colors
Every rule sentence breaks into five visual roles.
Actor 行為人plaintiff原告
Act 行為seeking equitable property remedy請求衡平財產救濟
Object 對象specific traceable property可追蹤之特定財產
Standard 法律標準unjust enrichment + tracing不當得利 + 追蹤
Consequence 後果CT (full property) or EL (security)推定信託（整財產）或衡平留置（擔保）
Casebook Snapshot · a real American case
Beatty v. Guggenheim Exploration Co.
Holding. "A constructive trust is the formula through which the conscience of equity finds expression. When property has been acquired in such circumstances that the holder of the legal title may not in good conscience retain the beneficial interest, equity converts him into a trustee."
Why it matters. Cardozo's signature formulation captures constructive trust as equity's flexible response to unjust retention.
Beatty/Cardozo：推定信託為衡平之良心形式。
Common Mistakes · what trips students
✗ appreciation 一定屬 P。
✓ Only with constructive trust; equitable lien limits to value extracted.
僅推定信託；衡平留置以投入為限。
✗ commingled 後 tracing 失效。
✓ Tracing rules (lowest intermediate balance) preserve.
追蹤規則仍可進行。
Mini IRAC · build the Application
Issue. D embezzles $200,000 from P, uses it to buy stock that appreciates to $600,000. Which remedy maximizes P's recovery?
Rule. A constructive trust captures any appreciation in property acquired with wrongfully obtained funds; an equitable lien limits recovery to the value extracted.
Application (model). D used P's $200,000 to buy stock now worth $600,000. Because constructive trust traces P's value into the stock and captures all appreciation, the fact that the stock is specific property acquired with P's funds and has tripled in value means P should choose constructive trust over equitable lien to capture the $400,000 appreciation.
Pick the right element for each blank:
g1.
g2.
g3.
Conclusion. Therefore, P should seek a constructive trust over the stock, recovering $600,000.
MBE Check · multiple choice
D wrongfully sold P's family heirloom for $50,000. The buyer is a bona fide purchaser for value. The $50,000 sits in D's account. What is P's best restitutionary remedy?
Mini Essay · write the Application paragraph
Facts. D, a fiduciary, secretly used $1 million of P's trust funds to buy a vacation home, now worth $2.5 million. D used $250,000 of his own funds to renovate the home.
Call. What remedies should P pursue?
Practice Drill · tap to build the rule
Drop the chips here in correct order:
Tap chips to add → tap chips in the target to remove: