Now we shall analyze the scope of doctrine of estoppel on which Mr. Dinnock relies for his claim and constructive trust by which he can have benefit by law. For this, firstly we shall explore the meaning of these terms.
The sec. 14 of the Trusts of Land and Appointment of Trustees Act 1996 lays down that the court has power, not only to make an order as to the trustees functions but also to make an order declaring 'the nature or extent of a person's interest in property subject to the trust'. This is emphasized in the case Crossley v. Crossley (1) later. Here the scope and applicability of constructive trust arises.
A constructive trust arises when a person has title to property and or takes possession of it under circumstances in which he/she is holding it for another, even though there is no formal trust document or agreement. The court may determine that the holder of the title holds it as constructive trustee for the benefit of the intended owner. It is to be remembered that this may occur through fraud, breach of faith, ignorance or
inadvertence. (2)A constructive trust comes into existence, regardless of any party's intent, when the law imposes upon a party an obligation to holds specific property for another. The person obligated becomes by force of law a constructive trustee towards the person to whom he owes performance of the obligation. We can termed it as Fiduciary Duties. (3)
Fiduciary Duties where a person who has undertaken to act for or on behalf of another in particular manner in circumstances which give rise to a relationship of trust and confidence. In this regard, in Bristol and West Building Society V Mathew (4) it was described that a servant who loyally does his incompetent best for his master is not unfaithful and not guilty of a breach of fiduciary duty, but may be guilty of a breach of a duty of care.
A constructive trust is always imposed by law. When the court makes a declaration of a constructive trust, it creates an enforceable interest in real or personal property.(5) In Hussey v Palmer (6) Lord Dennings described a constructive trust as "by whatever name it is described, it is a trust imposed by law whenever justice and good conscience require it. It is a liberal process, founded upon large principles of equity, to be applied in cases where the defendant cannot conscientiously keep the property for himself alone, but ought to allow another to have the property or a share in it. It is an equitable remedy where the court can enable an aggrieved party to obtain restitution". From above definitions it can be seen that the principle of "unjust enrichment" and "fiduciary duties" can not be disregarded whenever the scope of constructive trust