Junker v. Carlson

Summary

The Nebraska Supreme Court affirmed the dismissal of claims seeking constructive trusts against a property buyer and tenants who had dealt with a trustee. The court held that the buyer acted in good faith and was protected under Neb. Rev. Stat. § 30-38,101, while the claimants failed to prove that the tenants were unjustly enriched or knowingly participated in a breach of trust.

Holdings

1. Claims for restitution and unjust enrichment that seek to have money held in trust are grounded in an action to impose a constructive trust, which is equitable and is reviewed de novo on the record.
2. A buyer who in good faith and for value deals with a trustee, without knowledge that the trustee is exceeding or improperly exercising the trustee's powers, is protected from liability under Neb. Rev. Stat. § 30-38,101.
3. The tenants were not shown to have been unjustly enriched by the $152,000 payment for relinquishing their extended lease, and the evidence was insufficient to establish that they knew the trust did not own the property or that the trustee lacked authority to extend the lease.
4. The appellate court will not consider arguments or theories that were not raised in the trial court.

Questions Presented

1. Whether the claims seeking restitution and unjust enrichment were equitable claims for imposition of a constructive trust and therefore subject to de novo appellate review on the record.
2. Whether SLS Partners could be subjected to a constructive trust when it purchased trust property without knowledge that the trustee was exceeding or improperly exercising trust powers.
3. Whether the tenants were unjustly enriched by receiving $152,000 to relinquish their lease and whether they knew that the trust lacked authority to extend the lease.
4. Whether the claimants could raise duress and coercion for the first time on appeal.

Disposition

affirmed