Bank of Hampton Roads v. Powell

Powell owned property in Chesapeake, Virginia. In 2004, a developer, 3 MAC, bought her property for $265,000 and “one (1) lot to be mutually agreed upon by both Buyer and Seller in writing” to develop North Rollingwood Estates subdivision. In 2005, Powell and 3 MAC prepared an addendum, stipulating that Powell would receive the lot designated as Lot 1 on the preliminary subdivision plat. Several times over the next few years, Powell allegedly asked 3 MAC to convey Lot 1, but in 2012, 3 MAC sold the lot to Ashdon for $110,000. Powell sued, alleging breach of contract and fraudulent conveyance, and sought the imposition of a constructive trust upon Lot 1. After a settlement, the trial court dismissed Powell’s claim against Ashdon with prejudice, releasing Powell’s claim to Lot 1. Powell asked the court to impose a constructive trust upon the remaining land owned by 3 MAC that had not yet been sold, “Lot A,” which was subject to the Bank’s recorded first-lien deed of trust. The court held that the Bank had constructive knowledge of Powell’s rights and imposed the constructive trust. The Supreme Court of Virginia reversed and entered judgment for Powell in the amount of $110,000. Powell failed to distinctly trace her claim to the property that was the subject of the constructive trust. View "Bank of Hampton Roads v. Powell" on Justia Law