Unnecessary but Proper: The Missouri Court of Appeals Expands the Constructive Trust Doctrine While Ignoring the Recording Act

Missouri common law has long held that a constructive trust should be imposed only in cases of fraud or other wrongful conduct. The Missouri Court of Appeals overruled that precedent in Brown v. Brown, holding that a mere mistake is a sufficient ground for imposing a constructive trust. With this decision, the court considerably expanded the circumstances under which a plaintiff may be entitled to this equitable remedy. While the essential holding of Brown is a positive step for Missouri case law, the decision failed to distinguish between a mistaken conveyance that is purely gratuitous and one that is supported by consideration. This Note explains why such a distinction is necessary and argues that the broad holding in Brown should be limited to those cases where the conveyance is supported by consideration. Regardless of whether this proposed limitation is adopted, Missouri practitioners should be aware that this distinction has the potential to significantly limit the application of Brown in future cases. In addition, this Note emphasizes the importance of Missouri\u27s recording act5 in cases where title to property is allegedly affected by the order in which deeds are recorded. In Brown, the Missouri Court of Appeals ignored the purpose and function of the recording act, concluding that the error in recording altered the interests of the parties. Practitioners should be aware of the longstanding principles that suggest that the court erred in reaching this conclusion.