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Real Property Law
Constructive Trust Does Not Require Transfer In Reliance
Hernandez v. Florian NYLJ 6/28/19, p. 32, col. 5 AppDiv, Second Dept. (memorandum opinion)
In an action to impose a constructive trust on real property and to recover damages for unjust enrichment, record owner appealed from Supreme Court's denial of his motion to dismiss. The Appellate Division affirmed, holding that a constructive trust can be imposed even if the subject property was not transferred in reliance on a promise.
In 2002, promisee began living in the subject property with the record owner, his then-girlfriend. He allegedly contributed to the mortgage and carrying charges on the property. In 2006, the girlfriend transferred title to her brother, the current record owner. Promisee confronted the record owner about the transfer, and the record owner allegedly promised that if promisee paid all of the mortgage payments and the carrying charges, record owner would convey the property to promise when promise obtained permanent residency status in the United States and achieved good financial credit. Promisee alleges that he has paid $550,000 in mortgage and carrying charges in reliance on that promise. When promisee obtained permanent residency status, he sought transfer, but record owner refused. Promisee brought this action, and Supreme Court denied record owner's motion to dismiss. Record owner appealed.
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