Resitution

Question 1

What type of remedy is Restitution?

Answer 1

Restitution is a legal remedy.

Question 2

Restitution: What are the 2 rules?

Answer 2

You can seek restitution on top of a tort claim.

Restitution is basically unjust enrichment.

Question 3

What is unjust enrichment?

Answer 3

Unjust Enrichment is a cause of action which has fallen to the wayside being taught in law schools, and sometimes, it is called restitution.

Question 4

What is Restitution?

Answer 4

Restitution is a legal remedy which flows from an Unjust Enrichment COA.

Question 5

What type of relief is restitution usually?

Answer 5

Restitution is commonly money, but that does not mean restitution is damages.

Question 6

Damages v. Restitution:

Answer 6

Damages—monetary relief based on the plaintiff’s injury or loss.

Restitution—money relief based on the defendant’s gain.

Question 7

Is Restitution about rightful position?

Answer 7

No, restitution can put the plaintiff at more than their right position, and that is perfectly fine.

Question 8

Restitution: Examples (5)

Answer 8

• Mistaken Payments
• Mistakenly paying money not owed.
• Mistakenly paying more money than you owe.
• Accidentally paying for the wrong person.
• Accidentally paying the same invoice twice.

Question 9

Restitution: Rule on mistakes:

Answer 9

A mistake really need to be a mistake, the best Restitution plaintiff is one who is CLUELESS.

Question 10

Restitution: Rule learned form the LACKS case:

Answer 10

When we have a continuing wrong, you can sue for relief within the statute of limitations period, theoretically the harm is always occurring so the clock is always running, so you can recover from a certain number of years back.

Question 11

Restitution: What do you want to sue for?

Answer 11

The largest amount for your client.

Question 12

Restitution: Sometimes the amount of the ____________’s loss is the same as the ____________’s gain.

Answer 12

plaintiff(‘s) defendant(‘s)

Question 13

Unjust Enrichment: Hypo on exam to look out for:

Answer 13

Hypos with “mistake” or “married couple—no mistake”, then think of unjust enrichment.

Question 14

Unjust Enrichment: In a home improvement case, what would the plaintiff and defendant argue for in terms of value?

Answer 14

Man (plaintiff): Argues for the value of the improvements.

Woman (defendant): Argues for the fair market value of the loss.

Question 15

Restitution/Unjust Enrichment: §49 Possible Measures (4 of them)

Answer 15

A) The value of the benefit in advancing the purposes of the defendant,

B) The cost to the claimant conferring the benefit,

C) The market clause of the benefit, or

D) A price the defendant has expressed a willingness to pay, if the defendant’s assent may be treated as valid on the question of price.

Question 16

Restitution: When will a court think about a measure more beneficial to the plaintiff?

Answer 16

If there is a non-innocent defendant, the court will think about a measure more beneficial to the plaintiff.

Question 17

Restitution: What happens when there is an innocent defendant?

Answer 17

If the is an innocent defendant, the court will think about a measure more beneficial to the defendant. Or at least more equal.

Question 18

Restitution: General rule when a defendant is innocent or not:

Answer 18

There is a smaller number of gain for the plaintiff if the defendant is innocent, and a higher number of gain if the defendant is not innocent.

Question 19

Restitution: What is it, and what is it not?

Answer 19

Restitution is NOT rightful position because you can get more.

Restitution is detterance, punishment (kind of) and it is a win fall for the plaintiff.

Question 20

Restitution: What is rewarded when there is a conscious wrongdoer?

Answer 20

Awarded the net profit attributable to the underlying wrong.

Question 21

Restitution: Conscious Wrongdoers §50: what are they?

Answer 21

An enriched defendant who acts (a) with knowledge of the underlying wrong to the claimant, or (b) despite a known risk that the conduct in question violates the rights of the claimant.

Question 22

Restitution: What is the most important thing to remember?

Answer 22

Innocence or non-innocence is important.

Question 23

Restitution: What are 2 equitable remedies under Restitution?

Answer 23

1) Constructive Trusts
2)Equitable Liens

Question 24

Restitution: Equitable Remedy: Constructive Trusts: 2 parts?

Answer 24

Part 1: Court declares that the defendant’s legal title to X is subject to plaintiff’s superior equitable claim. (claims defendant was just holding the property for the plaintiff).

Part 2: Court requires the defendant to return the property to the plaintiff.

Question 25

Restitution: Equitable Remedy: Constructive Trusts: Paolini showed that:

Answer 25

Constructive trusts are fictional.

Question 26

Restitution: Equitable Remedy: Constructive Trusts: Ruffin showed that:

Answer 26

No identifiable property here because we cannot follow the cash.

(Lottery ticket alimony case).

Question 27

Restitution: Equitable Remedy(s): Bankruptcy?

Answer 27

Constructive Trusts and Equitable Liens will pull things out of a bankruptcy estate.

Question 28

Restitution: Equitable Remedy(s): Rule on Bankruptcy:

Answer 28

If fraud is the reason for the Defendant’s unjust enrichment and the Defendant has declared bankruptcy, then the identified property cannot be part of the bankruptcy estate. It’s Plaintiff’s property, so it can’t be part of the estate (meaning the assets distributed to the Defendant’s creditors). [same for equitable liens]

Question 29

Restitution: Equitable Remedy: Equitable Liens: What is it?

Answer 29

An Equitable Lien is a money judgment secured by a lien on specific property.

Question 30

Restitution: Equitable Remedy: Equitable Liens: Rule on Houses

Answer 30

In Re Mesa: Houses cannot be taken ini bankruptcy, but it is still subject to an equitable lien.

If the defendants do not pay, then plaintiffs can foreclose on the house.

Question 31

Restitution: Similarities between Constructive Trusts and Equitable Liens:

Answer 31

Both require the defendant’s unjust enrichment, tracing and litigation related to specific property.

Same need for tracing, same perk in bankruptcy.

Same fictional idea—parties never agreed to a lien and trust never was really holding anything.

Question 32

Restitution: Differences between Constructive Trusts and Equitable Liens:

Answer 32

Constructive Trust makes plaintiff an owner of property; Equitable Liens make the plaintiff a lien holder in the property.

Question 33

Restitution: When do you want an Equitable Lien?

Answer 33

You want an equitable lien if the property is decreasing in value.

If the asset decreases in value between the wrong/harm and the trial, Equitable Liens preserve the plaintiff’s right to judgement.

Question 34

Restitution: When do you want a Constructive Trust?

Answer 34

You want a constructive trust if the asset is increasing in value.

If the asset decreases in value between the wrong and the trial, Constructive Trusts allow the plaintiff to capture that appreciation.

Question 35

What to think of when examine an unjust enrichment?

Answer 35

When examine unjust enrichment (restitution) try to think: “Does this entail an issue with profits, money, or not paying employees…or does it look like cases today involving land?”

Question 36

Common issue spotters for unjust enrichment/restitution:

Answer 36

Estates
Home Improvements
Stealing Things