Estate Planning

Belvedere v. Brittain Estate: Court of Appeal Denies Constructive Trust Claim

By Hull & Hull LLP

In November 2007, David Smith and I podcasted on the Ontario Superior Court of Justice’s decision in Belvedere v. Brittain, a case involving a constructive trust claim against an estate by a Deceased’s common law spouse. 

At the time of the podcast, the decision was under appeal and I notice that earlier this month the Ontario Court of Appeal released its decision. 

Belvedere v. Brittain, involves an unmarried couple who cohabitated together for 23 months.  At one point, Mr. Brittain expressed the intention to leave Ms. Belvedere his RRSPs, but never made arrangements to do so.  On his death, Ms. Belvedere sued his estate, claiming for, amongst other things, a declaration that the RRSPs were held on a constructive trust for her benefit. 

At trial, the court allowed her claim on the basis that Mr. Brittain clearly intended that Ms. Belvedere receive his RRSPs; that, while they were cohabitating, Mr. Brittain was clearly enriched by the services provided by Ms. Belvedere; that Ms. Belvedere gave up active work as a result of her relationship with Mr. Brittain; that Mr. Brittain’s death had a “disproportionate emotional response” as a result of Mr. Brittain’s death; and that there was no juristic reason for Mr. Brittain’s enrichment. 

The trustee appealed the trial decision.  In allowing the appeal, the Court of Appeal found that, contrary to the trial judge’s conclusion, Ms. Belvedere did not suffer deprivation which exceeded the lifestyle she enjoyed.  While Mr. Brittain benefitted from her care and companionship, she also benefited significantly from the relationship.  Moreover, the court found that the fact that Ms. Belvedere had a “disproportionate emotional response” to Mr. Brittain’s death did not provide a legal basis for a claim in unjust enrichment. 

As a result, the court found that no constructive trust should be imposed.  This case is a good example of the court limiting the use of a trust us a remedy where it determined there was insufficient evidence of uncompensated contributions to Mr. Brittain's assets.  

Have a great day,

Megan F. Connolly    

Full post as published by Toronto Estate Law Blog on January 21, 2009 (boomark / email).