Opinion ID: 2773213
Heading Depth: 2
Heading Rank: 4

Heading: Resulting Trust

Text: The FDIC’s final argument is that we should find the existence of a resulting trust. This is an equitable remedy “‘aris[ing] by operation of law from a transfer of property under circumstances showing that the transferee was not intended to take the beneficial interest.’” Fid. Nat’l Title Ins. Co. v. Schroeder, 101 Cal. Rptr. 3d 854, 864 (Cal. Ct. App. 2009) (quoting Lloyds Bank Cal. v. Wells Fargo Bank, 232 Cal. Rptr. 339, 341 (Cal. Ct. App. 1986)). In other words, a resulting trust works to prevent unjust enrichment. The TSA’s grant to DFC of sole discretion to make decisions about the tax filings indicates that “the parties intended that DFC obtain beneficial interest in the refunds it received.” In re Downey Fin. Corp., 499 B.R. at 471. Because “[t]here is nothing ‘unjust’ about enforcing the parties’ contractual obligations set forth in the TSA,” an equitable remedy is inappropriate. Id. at 470.