PALMLAND VILLAS I CONDOMINIUM ASSOCIATION, INC., APPELLANT,
v.
GORDON A. TAYLOR ET AL., ECONO MOBILE LEASING, INC., ETC., APPELLEES
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The Palmland Villas condominium association appeals an order determining that creditor judgment liens and a state tax warrant attached to real property before a constructive trust was declared over that property. The court held that a constructive trust arises only upon judicial declaration, not from the underlying facts alone, and therefore liens attached before the trust declaration remain valid and enforceable.
A constructive trust comes into existence only upon the date of a court order or judgment declaring that circumstances warrant imposition of the trust, not upon the date the underlying facts occur. Therefore, the liens that attached before the January 5, 1979 constructive trust declaration remained valid and enforceable.
[1] A constructive trust comes into existence on the date of the order or judgment of a court of competent jurisdiction declaring that a series of events has given rise to a…
[2] A constructive trust arises by operation of law to do equity under the circumstances, without regard to intent.
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Join FLexlaw to unlock all legal intelligence“A constructive trust comes into existence on the date of the order or judgment of a court of competent jurisdiction declaring that a series of events has given rise to a constructive trust.”
This establishes the core holding: constructive trusts arise upon judicial declaration, not upon the occurrence of underlying facts.
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Join FLexlaw to unlock all legal intelligenceReal property was conveyed to Palmland Development Corp. on February 24, 1976, for recreational purposes and was recorded. Subsequently, a tax lien an…
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HERSEY, Judge.
This is an appeal from an order determining that the liens of certain creditors’ judgments and a state tax warrant attached to real property prior to the creation of a constructive trust involving that property.
The real property was conveyed to Palm-land Development Corp. on February 24, 1976, to be used for recreational purposes and the conveyance was duly recorded.
Subsequently a tax lien and three judgment liens were recorded against the property.
Thereafter, on January 5, 1979, a final judgment was entered declaring the real property to be held in constructive trust by virtue of the documents recorded in 1976. Jurisdiction to determine whether the liens attached to the property was specifically reserved by the trial court. No appeal was taken from that judgment. Thereafter the trial court determined that the liens did attach to the property and this appeal was taken by appellant, Intervenor/Third Party Plaintiff, from that determination.
Appellant’s position is that the liens could not have attached since the property was a trust asset from the time of the conveyance and that the debtor-obligor was thereafter simply a trustee without power to pledge trust assets to secure its corporate obligations.
The result in this case turns upon the answer to the question, when does a constructive trust come into existence. We determine that a constructive trust comes into existence on the date of the order or judgment of a court of competent jurisdiction declaring that a series of events has given rise to a constructive trust.
A constructive trust arises by operation of law, Staples v. Battisti, 191 So. 2d 583 (Fla. 3d DCA 1966), as opposed to a resulting trust which automatically arises out of certain circumstances. Grapes v. Mitchell, 159 So. 2d 465 (Fla.1963). Both are creations of equity. The former is created by law to do equity under the circumstances and without regard to intent. The latter is enforced by law to carry out the parties’ real or presumed intent based upon the circumstances.
An action for the declaration of a constructive trust may be barred if the events giving rise to the necessity for the imposition of this equitable remedy transpired beyond the period permitted by the applicable statute of limitations, usually expressed in terms of laches. See Yawn v. Blackwell, 343 So. 2d 906 (Fla. 3d DCA 1977). This leads inevitably to the conclusion that a constructive trust is not created by the facts themselves since no trust is found where the operable facts occur beyond the statutory period. The facts simply form the basis upon which a court may presently impose a trust if the statute of limitations has not barred this remedy. Wadlington v. Edwards, 92 So. 2d 629 (Fla.1957).
Therefore there was no trust in existence when the liens attached. Imposition of a constructive trust by the order of January 5, 1979, could have no effect on the validity or priority of those liens. The trial court correctly determined that they remained enforceable. It should be noted that a foreclosure sale will not divest the restriction to recreational purposes to which the property will remain subject notwithstanding any such sale.
We affirm the order from which this appeal was taken.
AFFIRMED.
LETTS, C.J., and BERANEK, J., concur.
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Provence v. Palm Beach Taverns, Inc., 676 So. 2d 1022 (Fla. 4th DCA 1996)…he person entitled to the property. In re Shepard, 29 B.R. 928 (Bkrtcy.M.D.Fla.1983). However, unlike an express trust or a resulting trust, a constructive trust arises solely by operation of law. Palmland Villas I Condominium Ass’n, Inc. v. Taylor, 390 So. 2d 123 (Fla. 4th DCA 1980). Thus, a constructive trust is a remedial device with dual objectives: to restore property to the rightful owner and to prevent unjust enrichment. Abreu v. Amaro, 534 So. 2d 771 (Fla. 3d DCA 1988). To impose a constructive trust…
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Towerhouse Condo., Inc. v. Merton Millman and Lillian Aronoff, 475 So. 2d 674 (Fla. 1985)…a.1981). Thus, while the association holds legal title to the property, it does so as trustee pro tanto for eighty-two members of the association who provided funds for the purchase. See generally Palmland Villas I Condominium Association v. Taylor, 390 So. 2d 123 (Fla. 4th DCA 1980). Respondents, who did not contribute toward the purchase, have no equitable interest in the property but concomitantly have no liability for taxes, maintenance or improvements. Because of the results reached herein, we find it u…
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Cohen v. Hardman, 416 So. 2d 498 (Fla. 5th DCA 1982)…e matter. This premature action is similar to ordering the imposition of a constructive trust on a person’s assets before there has been a determination that the trust should be imposed. Cf. Palmland Villas I Condominium Association, Inc. v. Taylor, 390 So. 2d 123 (Fla. 4th DCA 1980). Even if the funds from an express trust were (allegedly) wrongfully or negligently disbursed by the trustee, it puts the cart before the horse to require their restoration before the trustee’s liability has been determined. Thom…
Previewing 3 of 6 citing cases — full citator treatment, depth of discussion, and citing context are member features.
Join FLexlaw to unlock all legal intelligenceAuthorities Cited
- Wadlington v. Edwards, 92 So. 2d 629 (Fla. 1957)
- Grapes v. Mitchell, 159 So. 2d 465 (Fla. 1963)
- Staples v. Battisti, 191 So. 2d 583 (Fla. 3d DCA 1966)
- Yawn v. Eugenia C. Blackwell, 343 So. 2d 906 (Fla. 3d DCA 1977)