Unjust Enrichment – It’s Just Like It Sounds

Did someone make money off of you unfairly?  You may have a cause of action (claim) for unjust enrichment.  

“A person is unjustly enriched when retention of the benefit received would be unjust considering the circumstances of the transfer and the relationship of the parties.” Hornett v. Leather, 145 A.D.2d 814, 816 (3d Dept. 1988) (citing, McGrath v. Hilding, 41 N.Y.2d 625, 629 [1977]. “It does not require a showing of a wrongful act by the person enriched.” Simonds v. Simonds, 45 N.Y.2d 233, 242(1978).

An action to recover for unjust enrichment rests upon the equitable principle that a person shall not be allowed to enrich himself or herself unjustly or at the expense of another, Miller v. Schloss, 218 N.Y. 400, 407, 113 N.E. 337 (1916), and sounds in restitution or quasi-contract, Edelman v. Starwood Capital Group, LLC, 70 A.D.3d 246, 250, 892 N.Y.S.2d 37 (1st Dept. 2009). A benefit conferred under a contract unenforceable under the Statute of Frauds may be recovered in quasi contract if the other party is in default, Harmon v. Alfred Peats Co., 243 N.Y.473, 154 N.E. 314 (1926); Galvin v. Prentice, 45 N.Y. 162 (1871).
When property has been acquired in such circumstances that the holder of legal title may not in good conscience retain the beneficial interest, equity converts him to a trustee.” Beatty v. Guggenheim Exploration Co., 225 N.Y. 380, 122 N.E. 378 (1919). “A court of equity in decreeing a constructive trust is bound by no unyielding formula. The equity of the transaction must shape the measure of the relief.” Id.

 

If you have any legal questions or need help with unjust enrichment, please contact Attorney Scott Lanin at (212) 764-7250 x 201 or use the contact form in the right sidebar.