Lac Minerals v International Corona Resources [1989] 2 SCR 574

• Plaintiff was mining and Defendant approached them about a possible joint venture. During discussions Plaintiff revealed to Defendant that the adjacent plot of land had valuable oil deposits.

• Plaintiff put in a bid and Defendant, using the info revealed to them by Plaintiff, outbid them and won the plot.

• Supreme Court held Defendant was in breach of a duty not to misuse confidential information.

  • The appropriate remedy was the imposition upon the defendant of a constructive trust of the property. 

La Forest J

• The modern approach to CTs:

First, the court determines whether a claim for unjust enrichment is established, and then, secondly, examines whether in the circumstances a constructive trust is the appropriate remedy to redress that unjust enrichment.

• He says that here a monetary award would be inadequate.