I. Remedies P can seek against D
1. Purchase money resulting trust: A resulting trust is imposed when one person (trustee) takes title in his or her name for another person (beneficiary) who supplied consideration for the property. When beneficiary pays part of the purchase, the resulting trust is for pro rate portion of the purchased property.
Here, P and D jointly purchased a house and each contributed $20,000 toward the down payment and borrowed from a bank jointly. Even though P and D both supplied consideration, the title of the property was under D's name only. While D could argue that P's contribution was only a loan to D, this argument would fail because they agreed to jointly purchase the property, contributed equal amount toward the down payment, obtained a bank loan jointly, and agreed to divide the net proceeds equally upon the sale of the property after D left the property.
Thus, P is entitled to pro rata share of the proceeds from the sale of the property.
2. Constructive trust: A constructive trust is a court-ordered obligation for one party who has been unjustly enriched at the expense of another. If D did not pay the half of the proceeds from the sales of the property, D would be unjustly enriched.
3. Defenses
(1) Unclean Hands: Equity does not help those who do not come to the court with clean hands.
P agreed to put the property under D's name to hide her assets from the creditors.
(2) Laches: Laches applies when a party has 1) unreasonably delayed asserting his or her rights so that there is prejudice to the other party.
Five years have passed before P brought the matter to the court. But there is no prejudice to D since D actually profited from the delay.
II. Remedies A can seek against D
1. Constructive trust: constructive trust is a court-ordered obligation for one party who has been unjustly enriched at the expense of another. If D did not pay the half of the proceeds from the sales of the property, D would be unjustly enriched.
Here, A can trace the proceeds of wrongfully acquired property by imposing contructive trust.
2. Defenses
(1) Laches: Laches applies when a party has 1) unreasonably delayed asserting his or her rights so that there is prejudice to the other party.
Here, six years have passed before A brought the matter to the court. But there is no prejudice to D since D actually profited from the delay.