Equitable Interest in Property

Resulting Trust and Equitable Interests

Thomas H. Curran Associates’s bankruptcy and commercial litigation lawyers have decades of experience prosecuting and defending equitable claims and remedies on behalf of trustees, creditors and debtors in bankruptcy, federal and state courts. Equitable claims are extremely fact intensive and generally depend on the court’s evaluation of a series of factual tests to establish liability. Bankruptcy trustees and creditors typically assert claims against third parties, often a debtor’s insiders, to establish an equitable interest in property that can be reclaimed for the bankruptcy estate or creditors.

Courts impose equitable remedies such as resulting trusts and constructive trusts in real estate and personal property, LLC membership interests and corporate shares. Constructive trusts follow claims against third parties for unjust enrichment or fraudulent transfer based upon the inequities of the a particular transaction or ownership structure. Factors a court often considers are: the intent of the transferor and nominal owner of the property, the contribution of the debtor towards the acquired property, the debtor’s involvement with the maintenance and upkeep of the property, the debtor’s control over the business or property interest, the intent of the transaction giving rise to the property acquisition and many other case specific factors. Resulting trusts and other equitable proceedings usually result in a court declaration that the trustee or the debtor is the true owner of property held in another’s name, which can then be reached by the debtor’s creditors. Related equitable remedies such as attachment and injunctive relief often accompanies a trustee’s request for the imposition of a resulting or constructive trust judgment.

Thomas H. Curran Associates’s attorneys are intimately familiar with the factual and legal complexities of prosecuting and defending claims for resulting trust, constructive trust and related equitable remedies. They have tried cases in bankruptcy, federal and state trial and appellate courts and can assist clients in bringing and defending such claims and remedies.