What is Unjust Enrichment?



Posted: Friday, April 23, 2010

by Joe Cline
Affinity Properties, Inc

The legal term "unjust enrichment" refers to when one person or party unfairly benefits from the property or services of another person or party. If a court finds that unjust enrichment has occurred, the individual who received the gains may be required to make restitution. If unjust enrichment is determined, this does not mean that there has been any criminal wrongdoing.

Unjust enrichment can be best explained through an example. Here is an incident that reflects one of the most common types of unjust enrichment suits. A homeowner agrees to pay a contractor to install a heating system throughout the house. While the contractor is installing the heating system, he notices a gas leak caused by a broken pipe. The contractor bills the homeowner for the time he spent and the materials he used making the repair. The home owner argues that he did not ask the contractor to repair the broken pipe, and refuses to pay the contractor for the service. The home owner has profited from the labor of the contractor, and the contractor has received nothing for his time and effort. At this point, the contractor can take the homeowner to court for unjust enrichment.

There are five questions that will be asked about the incident in court in order to determine whether or not there was actually unjust enrichment. The court will ask firstly if the defendant was enriched. Secondly, the court will ask if the enrichment occurred at the expense of the claimant. Thirdly, the court will determine whether or not that enrichment was unjust. The fourth question asks if the defendant has a defense. Finally, the claimant will be asked what remedies they had available.

Jurisdictions vary in their rulings, and each unjust enrichment case is judged individually. In some jurisdictions, parties who fulfill part of their obligations are entitled to receive part of the promised payment. In other jurisdictions, parties who fail to complete the promised service are not entitled to any payment whatsoever.

Many cases of unjust enrichment are brought to trial when there is no written or verbal contract. However, unjust enrichment can occur even when there is a written contract between two parties. Remember to have a lawyer thoroughly examine any contract before you decide to sign it. If you believe that you are a victim of unjust enrichment, you should consult a trusted legal professional immediately.

Joe Cline writes articles about various Austin law firm events and legal topics, but is not a lawyer. If you'd like professional Austin legal advice you can contact a licensed lawyer such as Guillermo Ochoa-Cronfel at The Cronfel Firm for expert legal advice and counsel.

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