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Supreme Court of Canada· 1980landmark

Pettkus v Becker

[1980] 2 SCR 834· 1980 CanLII 22 (SCC)
PropertyJDPropertyFamilyNCA
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The constructive trust as a remedy for unjust enrichment. Three-element test: enrichment, deprivation, and absence of juristic reason.

At a glance

Becker, an unmarried cohabitant who contributed labour and capital to her partner's farm and beekeeping business, was awarded a half-interest by way of constructive trust. The SCC adopted the three-element test for unjust enrichment that governs Canadian restitution law.

Material facts

Becker and Pettkus lived together unmarried for nearly 20 years. Becker worked the farm and contributed to the business; Pettkus held all assets in his name. On separation, Becker had no statutory matrimonial-property claim.

Issues

(1) What is the test for unjust enrichment? (2) Is the constructive trust available as a remedy?

Held

Test established. Constructive trust granted; Becker awarded half interest.

Ratio decidendi

To establish unjust enrichment: (1) enrichment of the defendant; (2) corresponding deprivation of the plaintiff; (3) absence of any juristic reason for the enrichment. Where these elements are met and the plaintiff has contributed labour or property linked to specific assets, a constructive trust is available as a proprietary remedy.

Reasoning

Dickson J adopted the unjust-enrichment doctrine that had developed in Canadian and Commonwealth case law. The constructive trust is not a vehicle of arbitrary discretion but a remedy responsive to specific elements. The link between contribution and asset must be sufficient to justify a proprietary (rather than monetary) remedy.

Significance

Foundational case for Canadian restitution. Garland v Consumers Gas (2004) refined the third element; Kerr v Baranow (2011) recast the framework for cohabitation cases as a "joint family venture" analysis. Pettkus remains the touchstone.

How to cite (McGill 9e)

Pettkus v Becker, [1980] 2 SCR 834, 1980 CanLII 22 (SCC).

Bench

Laskin CJ, Martland J, Ritchie J, Pigeon J, Dickson J, Beetz J, Estey J, McIntyre J, Chouinard J

Source: scc-csc.lexum.com

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