Why In Re Omegas Group Was Right: An Essay on the Legal Status of Equitable Remedies

Abstract

This article is part of a symposium on the new Restatement (Third) or Restitution and Unjust Enrichment. I take up the problem of constructive trusts in bankruptcy. The Restatement takes the position that constructive trust claimants have automatic priority in insolvency situations over ordinary creditors. I argue that this unduly reifies a remedial construct that is useful for capturing unjust enrichment but does not always do so in cases of insolvency.

Keywords: Constructive Trust, Restitution, Unjust Enrichment