Opinion ID: 1143765
Heading Depth: 2
Heading Rank: 3

Heading: proceeds from the sale of unit 102

Text: After the Gibsons left the Klondike, condominium unit 102 was sold to a third party. Although the Gibsons had held legal title to unit 102, the trial court awarded the proceeds from this sale to Beaux. The court found that the Gibsons' purchase of Unit 102 was not real and held, [t]here is no equitable reason for awarding the sale proceeds to the Gibsons, since they made no payments on the unit. This decision misallocated the burden of proving the equitable remedy. It is axiomatic that the holders of legal title to a property are entitled to the proceeds of its sale unless a court imposes on the property an equitable remedy, such as a constructive trust, in favor of another. The burden of proof must fall on the party seeking to impose the equitable remedy, in this case, Beaux. The trial court, however, did not find that Beaux had an equitable right to Unit 102. Instead, it stated that the Gibsons lacked an equitable interest in the property. We believe that this language indicates that the trial court erroneously imposed the burden of establishing the equitable remedy on the Gibsons rather than on Beaux. Because the trial court incorrectly imposed the burden of proving equitable relief on the Gibsons, we reverse its award of the proceeds of Unit 102 to Beaux and remand for a determination whether Beaux is entitled to the equitable relief he seeks. If the trial court finds, on remand, that Beaux has not proved his equitable right to the proceeds, then it must award the proceeds to the Gibsons.