Opinion ID: 765158
Heading Depth: 2
Heading Rank: 3

Heading: State Remedies

Text: 17 Our constitutional holdings allow us to easily dispose of the members' state law claims seeking imposition of a constructive trust based on unjust enrichment. A constructive trust in Iowa is an equitable remedy and is appropriate in three instances: actual fraud, constructive fraud, or equitable principles other than fraud. See In re Estate of Peck, 497 N.W. 2d 889, 890 (Iowa 1993). The members must prove their entitlement to a constructive trust by clear, convincing, and satisfactory evidence. Neimann v. Butterfield, 551 N.W. 2d 652, 654 (Iowa Ct. App. 1996). 18 The members agree that the cities have not engaged in either actual or constructive fraud. (See Appellants' Br. at 29.) They also concede that the cities' actions are facially valid under the statute. We end with the underlying contention with which we started. The statewide plan is a defined benefit plan. As such, it entitles the members to predetermined benefits at retirement and to a sound plan to ensure receipt of those benefits. Because the cities bear the risk of market fluctuations, and because their use of the excess funds does not compromise the soundness of the plan, the cities' use of the excess funds to offset only their own future contributions does not unjustly enrich the cities at the expense of the members. The district court correctly granted summary judgment in favor of the cities.