Traub v. Traub

Summary

The court affirmed a decree imposing a constructive trust on beach property acquired through a redemption arrangement among three brothers. It held that a confidential relationship and the defendant’s promise to hold the property in trust supported awarding each brother a one-third interest, along with an accounting.

Holdings

1. A constructive trust was properly imposed because Edward Traub accepted the plaintiffs' confidence and agreed to hold the property in trust for the brothers, making it inequitable for him or the corporation through which he held title to retain the property exclusively.
2. The plaintiffs' interests were not defeated because the evidence showed that they offered to reimburse Edward and the written promise did not establish a deadline or other condition requiring reimbursement within a specified period.
3. The decree properly declared that the beach property was trust property, awarded each plaintiff a one-third share, and required a complete accounting.

Questions Presented

1. Whether the evidence supported the Chancellor's factual findings concerning the parties' agreement and the plaintiffs' entitlement to share in the property.
2. Whether the circumstances established a constructive trust in favor of the plaintiffs despite their failure initially to contribute funds toward redemption expenses.
3. Whether the Chancellor properly declared that each plaintiff held a one-third interest and ordered an accounting.

Disposition

affirmed