Unjust Enrichment/Restitutionary Remedies

Question 1

Quasi-Contract

Answer 1

This is just the name given to imposing a legal obligation on the defendant who receives a benefit pursuant to an unenforceable contract. Thus, if a contract is unenforceable because of the Statute of Frauds, incapacity or illegality, a defendant who still receives the benefit may be forced to make some form of restitution.

If the defendant unjustly retains personal property, specific restitution of the personal property is the appropriate remedy. If the defendant obtains goods and services, the value of those goods and services is the restitutionary remedy. If the defendant keeps money, and uses it to make purchases or commingles it, we look to a constructive trust, resulting trust, or equitable lien.

Question 2

Replevin

Answer 2

Replevin is a legal restitutionary remedy, not an equitable one. Its purpose is the recovery of personal property wrongfully taken or detained. With replevin, it is possible to recover prejudgment possession of the personal property, in a proceeding called “claim and delivery.”

Under the UCC, to obtain an order of replevin in connection with the sale of goods, plaintiff must show that the goods are specifically identified in the contract, and the plaintiff is unable to cover despite reasonable attempts to do so.

Question 3

Ejectment

Answer 3

Ejectment is the name given to the legal remedy to have possession restored to a plaintiff against a defendant wrongfully in possession of real property. If an ejectment action is not brought timely, the possessor can prevail in an adverse possession action.

Question 4

Constructive Trust

Answer 4

To impose a constructive trust, the court must find that retention of property by the defendant-wrongdoer would constitute an unjust enrichment. The sole trust obligation of the constructive trustee is to convey the property to the plaintiff.

Question 5

Equitable Lien

Answer 5

In addition, an equitable lien is the appropriate remedy where the wrongdoer commingles her own funds with the funds she misappropriated from the victim, and then uses the funds to purchase property. An equitable lien then lies on both the funds remaining in the account and any property purchased with funds taken from the account.

Question 6

Resulting Trusts

Answer 6

As discussed in Trusts, when an express trust fails because the beneficiary is dead, equity creates a resulting trust in the settlor or, if the settlor is dead, the settlor’s estate.