The City of Sarnia applied for a declaration that it held legal title to the "Mitton site" properties in trust for Bluewater Health, either as a bare trust or a constructive trust, and sought an equitable right to indemnity for ongoing maintenance costs.
The court dismissed the application, finding no certainty of intention to establish a bare trust from the relevant statutes (1920 Act and 1989 Act) or the parties' conduct.
Furthermore, the court found no basis for a constructive trust, as the City was seeking to impose a burden (decommissioning costs) rather than remedy an unjust enrichment or condemn a wrongful act by Bluewater.
The court emphasized that constructive trusts are typically used to provide a proprietary remedy for a party's loss or to prevent wrongful gain, not to transfer liabilities.