Unjust enrichment means simply that one party has benefited unfairly at the expense of another. This concept is grounded in equity, focusing on fairness and moral principles rather than legal rights.
A claim of unjust enrichment can arise in various commercial contexts, where no formal contract exists between the parties. Under Illinois law, a plaintiff claiming unjust enrichment must allege that the defendant has unjustly retained a benefit to the plaintiff’s detriment and that that defendant’s retention of the benefit violates the fundamental principles of justice, equity and good conscience.
Situations where unjust enrichment might occur include:
- Services rendered without a contract — A person provides services that the recipient understands were not intended to be free.
- Delivery of goods by mistake — A supplier erroneously ships goods to a person or entity without a contract, and the recipient recognizes the error but keeps the goods.
- Improvements to property — A contractor improves an owner’s property without a contract, and the owner refuses to pay the excess costs.
The principal remedy available to a plaintiff is restitution, aimed at restoring the parties to the status they were in before the unjust enrichment occurred. Restitution can require the unjustly enriched party to return money or property transferred, or to pay for services rendered.
However, multiple defenses can be asserted against unjust enrichment claims, including these:
- Existence of an express contract – Unjust enrichment is a concept called a “quasi contract,” in which Courts imply the existence of a contract where none exists to prevent unjust results. However, a party cannot assert a claim on a contract implied in law if an express contract exists between the parties concerning the same subject matter
- Change of position — The defendant may have changed their position based on the benefit (e.g., spent the money), such that returning it would cause undue hardship.
- Estoppel — The plaintiff may have acted in a way that led the defendant to believe they could retain the benefit.
- Laches — The plaintiff may have delayed excessively in bringing the claim, during which circumstances have changed to the defendants detriment.
- Unclean hands — The plaintiff may have engaged in unethical, bad faith or illegal behavior related to the subject of the claim.
If you are the plaintiff or defendant in a case in which unjust enrichment is at issue, you need to make a persuasive case for restitution or a strong defense. An experienced Illinois commercial litigation attorney can be a valuable aid in vindicating your position, often by negotiating a workable settlement.
Andrew R. Schwartz is an experienced business litigator in Chicago and a member of Aronberg Goldgehn Davis & Garmisa. Mr. Schwartz concentrates his practice in helping clients in commercial litigation in state and federal courts throughout the Chicago metropolitan area, including all surrounding cities in Cook, DuPage and Lake counties. Call today at 312-755-3164 or contact us online to schedule a consultation.
