Porter v. Zuromski

In Porter v. Zuromski, 195 Md. App. 361, 6 A.3d 372 (2010), with Judge Robert A. Zarnoch speaking for this Court, we discussed the remedy of a constructive trust and the effect of demonstrating a confidential relationship, stating: A constructive trust is a remedy that converts the holder of legal title to property into a trustee for one who in good conscience should reap the benefits of the property. Its purpose is to prevent the unjust enrichment of the holder of the property. This remedy applies where a property has been acquired by fraud, misrepresentation, or other improper method, or where the circumstances render it inequitable for the party holding the title to retain it. Ordinarily, such factors must be shown by clear and convincing evidence. However, this rule changes, once a confidential relationship is shown. Then, a presumption arises that confidence was placed in the dominant party and that the transaction complained of resulted from fraud or undue influence and superiority or abuse of the confidential relationship by which the dominant party profited. This presumption shifts the burden to the defendant to show the fairness and reasonableness of the transaction. The Court further explained that a confidential relationship "exists where one party is under the domination of another or where, under the circumstances, such party is justified in assuming that the other will not act in a manner inconsistent with his or her welfare." Id. at 369 n.12. In Porter, id. at 376, the Court upheld the trial court's imposition of a constructive trust and its declaration that each party had an undivided interest in the property. The case involved an unmarried couple who had been romantically involved for over a decade. Id. at 364-65. The woman had paid half of the expenses for the home that the couple shared, although only the man was named on the deed and mortgage. Id.