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, not a freestanding cause of action,” U.S. District Judge Thomas Schroeder of Winston-Salem wrote in […]
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 have standing to seek the imposition of a constructive trust on $25,000 that two investors […]
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 trust imposed on the residence and vehicle that her late paramour had provided to her […]
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.
Tort/Negligence – Conversion – Funds – Bona Fide Purchaser – Tracing Funds – Constructive Trust – No Fiduciary Relationship – Other Circumstances
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.
Domestic Relations – Separation Agreement – Court Orders – Trusts & Estates – Husband’s Will – Tort/Negligence – Constructive Trust
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.
Trusts & Estates – Civil Practice – Statute of Limitations – Incompetent Adult – Appointment of Guardian – Real Property – Constructive Trust
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.
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 [...]
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 ca[...]
Real Property – Summary Judgment – Breach of Contract – Breach of Warranty – Fraud – Unfair & Deceptive Trade Practices – Constructive Trust – Fiduciary Relationship
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 . . .
A McDowell County jury has awarded $130,000 to a woman who was dumped by her fiancé in a breach-of-contract-to-marry claim, a common-law tort that is rarely seen today. The case involved a young woman who worked in her older boyfriend's convenience stores. He asked her to marry him, she accepted, and he told her that they would eventually sell the convenience stores and she would never have to wo[...]
Civil Practice – Interlocutory Appeal – Substantial Right – Contract – Lis Pendens – Constructive Trust – Dismissal
Superior Construction Corp. v. Intracoastal Living, LLC. (Lawyers Weekly No. 10-16-1067, 9 pp.) (Martha A. Geer, J.) Appealed from Brunswick County Superior Court (John R. Jolly Jr., J.) N.C. App. Unpub. Click here for the full text of the opinion. Holding: Since the plaintiff’s appeal is interlocutory and has not been certified by the trial […]
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