1250 Broadway, 27th Floor New York, NY 10001

WHILE NOT ON DEED, SHE OWNED HALF OF PROPERTY

FOUND TO HAVE CONTRIBUTED TO EXPENSES FOR ABOUT 30 YEARS

AA claimed to have entered into an agreement with SR (who was married to AA’s sister), wherein AA would own a half of a certain Brooklyn property, even though she wasn't named on the deed. And consistent therewith, AA contributed to half of the property’s expenses.

When her sister died, SR remarried and transferred AA's half of the property to his new spouse and refused to acknowledge AA’s ownership interest.

After a lawsuit was filed, and a trial was conducted, the Kings County Supreme Court sided with AA and entered judgment imposing a constructive trust on the parcel.

On appeal, the Appellate Division, Second Department, reiterated the elements that applied to such a claim, as follows:

“The elements of a constructive trust are (1) a fiduciary or confidential relationship; (2) an express or implied promise; (3) a transfer in reliance on the promise; and (4) unjust enrichment …. A party must establish the elements of a constructive trust by clear and convincing evidence.”

In this instance, since AA had contributed to paying the mortgage debt, property taxes, and maintenance costs for some three decades, the AD2 agreed that relief was properly awarded in her favor and left the outcome undisturbed.

We trust they came to the right conclusion there.

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DECISION

Ali v Rahaman

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