The unraveling of a lawsuit against Capital One in a North Carolina federal court underscores the dangers of basing a case solely on a constructive trust action. “Under North Carolina law, a constructive trust is a remedy for otherwise-established wrongs, ...

Tagged with: Constructive Trust

National Financial Partners Corp. v. Estate of Stokes (Lawyers Weekly No. 14-15-0965, 34 pp.) (Louis Bledsoe III, J.) 2014 NCBC 49 Holding: Although plaintiffs purchased an investment firm that appears to have been running a Ponzi scheme, plaintiffs do not ...

Tagged with: Constructive Trust Ponzi scheme

Houston v. Tillman (Lawyers Weekly No. 14-07-0613, 14 pp.) (Martha Geer, J.) Appealed from Mecklenburg County Superior Court (Hugh Lewis, J.) N.C. App. Holding: Even though plaintiff did not show any wrongdoing on defendants’ part, plaintiff could have a constructive ...

Tagged with: Constructive Trust

After four years of litigation, two contradictory appellate decisions and a jury trial, the North Carolina-based owner of a chain of retail stores has negotiated a $1 million settlement with a bank accused of mishandling money.

Tagged with: Constructive Trust

Variety Wholesalers, Inc. v. Salem Logistics Traffic Services, LLC Where plaintiff claims the defendant-lender converted funds that plaintiff transferred to the defendant-borrower, the court holds that funds transferred electronically may be sufficiently identified through evidence of the specific source, specific amount, and specific destination of the funds in question.

Tagged with: Constructive Trust Conversion Tort/Negligence

MacMillan v. MacMillan A decedent’s first wife has stated a claim for a constructive trust against the decedent’s widow when the first wife alleges that the decedent was under court order to leave her $38,000 but he arranged his finances so that his widow received the money instead.

Tagged with: Constructive Trust Domestic Relations Separation Agreement Tort/Negligence trusts & estates

Estate of Formyduval v. YeddoEven though plaintiffs’ decedent was allegedly incompetent when she transferred property to defendants during the 1990’s, since the decedent was declared incompetent on Aug. 13, 1999 and a guardian was appointed for her on Sept. 3, 1999, the statute of limitations on plaintiffs’ constructive trust claim began running on Sept. 3, 1999.

Tagged with: Civil Practice Constructive Trust Real Property Statute of Limitations trusts & estates

Myers v. Myers A consent order’s requirement that the decedent-father name his third son as a 33 percent beneficiary of the “death benefits” from his employment unambiguously referred not only to the decedent’s life insurance but also to his retirement accounts. We affirm the imposition of a constructive trust on the death benefits from the decedent’s retirement accounts for the benefit of his youngest son, Travis.

Tagged with: Consent Order Constructive Trust death benefits Domestic Relations parent & child

Variety Wholesalers, Inc. v. Salem Logistics Traffic Services, LLC In the parties' agreement for defendant Salem Logistics to audit plaintiff's freight bills, plaintiff did not specify that Salem was required to pay plaintiff's carriers with the same exact funds that plaintiff transferred to Salem. In fact, plaintiff's witnesses said it would have been fine for Salem to pay plaintiff's carriers out of Salem's general funds. Therefore, plaintiff failed to show that Salem accepted the payments with the intent to redeliver the exact funds.

Tagged with: Constructive Trust Conversion Tort/Negligence

Scheller v. Otterberg. The plaintiff-buyers hired an inspector, who warned them of possible water intrusion into the home they were buying. Even if the plaintiffs relied on false representations . . .

Tagged with: Breach of Contract Breach of Warranty Catawba County Constructive Trust Fiduciary Relationship Fraud Real Property summary judgment Unfair and Deceptive Trade Practices