Crestar Bank v. Williams

These appeals stem from a trial court’s decree in two consolidated chancery suits that, inter alia, granted a constructive trust in favor of 17 “investors” with reference to seven assets of a defaulting debtor. The constructive trust established priority of the investors’ claims over those of certain of the debtor’s judgment creditors.

The dispositive question on appeal is whether the court below erroneously declared a blanket constructive trust in favor of the investors when they failed to trace “invested” funds to the debtor’s acquisition of any particular asset.

The pertinent facts are not…