Unjust Enrichment and Trust Claims: Avoiding Common Mistakes
Introduction
In the complex world of property law, unjust enrichment and trust claims are frequently encountered. However, these claims can be tricky to navigate, and mistakes are often made, leading to potentially severe consequences. In this post, we will discuss some common pitfalls to avoid when asserting such claims.
The Difference between Resulting Trust and Constructive Trust
A common error is the inability to distinguish between a resulting trust and a constructive trust. It's crucial to understand that these are separate legal concepts, each with its own set of requirements. A blanket request for both types may be ineffective if the case facts do not support one of the claims, usually the resulting trust. Therefore, ensure you have a clear understanding of each concept before asserting your claim.
The Importance of Limitation Periods and Beneficial Interests
Another potential pitfall is not being aware of the limitation period for each claim. The time limit within which a lawsuit must be filed varies depending on the nature of the claim. For instance, claims for an interest in real property have a different limitation period than claims to share in the value of other assets. Furthermore, it's essential to know what assets a beneficial interest can or cannot be awarded in. Do not claim a “constructive trust” interest in an asset when you mean that you deserve to share in the value of that asset.
Understanding the Consequences and Additional Claims
Finally, be aware that if your successful in your constructive trust claim, and the asset decreases in value from the date the claim was asserted to the date the judgement is obtained, your client will bear that loss. On the other hand, they would also benefit from an increase in value of the asset.
When asserting a trust or joint family venture claim, remember to assert all other claims to which your client may be entitled, such as spousal support, child support, etc.
The Role of Evidence
Evidence plays a crucial role in unjust enrichment and trust claims. The burden of proof lies on the party making the claim. As such, it's important to gather as much evidence as possible to support your case. This could include financial records, correspondences, witness testimonies, and any other material that can substantiate the claim. Lack of sufficient evidence can lead to the dismissal of the claim.
Legal Representation
While it's possible for individuals to represent themselves in making these claims, the complexities of property law and the high stakes involved often necessitate the expertise of a legal professional.
Conclusion
Understanding and avoiding these common mistakes can significantly improve the chances of success when asserting unjust enrichment or trust claims. It's always essential to ensure that you have sufficient facts to support your claims, know the limitation periods, and fully understand the potential outcomes.
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