Mr. Fox ignored this end and the state court order. Mr. Fox also assigns multiple errors to the district court's grant of relief. First, Mr. Fox argues that the district court improperly imposed a constructive trust on the funds because there was no allegation that he wrongly acquired the funds in question. Where a person holding title to property is subject to an equitable duty to convey it to another on the ground that he would be unjustly enriched if he were permitted to retain it, a constructive trust arises. Second, Mr. Fox challenges the district court's grant of prejudgment interest.
Federal law controls the issuance of prejudgment interest awarded on federal claims.
See City of Milwaukee v. Cement Div. Quesinberry v. Life Ins. The essential rationale for awarding prejudgment interest is to ensure that an injured party is fully compensated for its loss.