ABSTRACT
The problems considered in this chapter relate to the liability of a person who is a stranger to the trust – broadly defined as a person who was not originally appointed a trustee or to a fiduciary position. In very general terms, any person who interferes with the operation of the trust or who assists the trustee in a breach of his trust duties may find himself fixed with a constructive trust and answerable to the court and the beneficiaries for any misapplication of the trust property. Of course, it is not in every situation that a stranger to the trust is held liable to the beneficiaries as a constructive trustee. Yet in appropriate cases, when the conditions established by the case law are fulfilled, the constructive trust swings into operation and provides a most powerful remedy.
