Unjust Enrichment: When Someone Benefits at Your Expense
What Is Unjust Enrichment?
Unjust enrichment occurs when one party receives a benefit from another party under circumstances where it would be unfair to keep that benefit without paying for it. It is not a contract claim — it is an equitable principle that applies even when no formal agreement exists.
Courts use unjust enrichment to prevent one party from profiting unfairly at another's expense.
Elements of an Unjust Enrichment Claim
To succeed on an unjust enrichment claim, you typically must show:
- A benefit was conferred — You provided something of value (services, money, property) to the other party.
- The other party was aware — They knew or should have known they were receiving a benefit.
- Retention is unjust — Under the circumstances, it would be inequitable for them to keep the benefit without compensation.
Common Situations
- A contractor builds an addition on the wrong property by mistake — the property owner benefits but did not pay.
- You make improvements to a rental property expecting to be reimbursed, but the landlord refuses.
- You pay someone else's debt by mistake and they refuse to repay you.
- A business receives services from a subcontractor who had a contract with a now-bankrupt general contractor.
Unjust Enrichment vs. Contract Claims
Unjust enrichment is generally available only when there is no valid, enforceable contract between the parties covering the same subject. If a contract exists, the parties' rights are governed by the contract terms, not equitable principles.
This is why unjust enrichment claims are often brought as alternatives to breach of contract — in case the court finds the contract invalid.
Remedies
The typical remedy is restitution — the enriched party must return the benefit or pay its reasonable value. Courts measure this by looking at the value of the benefit actually received.
When to Consult a Lawyer
If you provided value to another party without a clear contract and they are refusing to compensate you, consider consulting an attorney. Unjust enrichment claims have time limits and specific proof requirements that vary by state.
This article is for informational purposes only and does not constitute legal advice. Consult a licensed attorney for guidance specific to your situation.