Also known as: Nul ne doit s'enrichir aux dépens d'autrui · unjust enrichment · enrichissement sans cause
Written by attorneys · grounded in primary & secondary sources — see below
A principle that prohibits retention of a benefit conferred by another when retention would be inequitable. The principle supports restitutionary remedies that restore value or specific property to the party who conferred the benefit.
Norman Nash delivered specialized machinery to Nadia Novak under a contract later held unenforceable. Novak retained and used the equipment for six months. A court orders Novak to return the specific machinery to Nash to prevent her from retaining a benefit without compensation.
Nathan Nguyen and his wife held their home as tenants by the entirety. Nguyen executed a will leaving the home to his nephew. After Nguyen died while still married, title passed automatically to his wife by survivorship. The nephew received nothing because the survivorship right controlled and no wrongful conduct justified equitable intervention.
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Natalie Norris paid a contractor an advance for work that was never completed because the contract proved unenforceable. The contractor kept the funds. A court awards Norris a money judgment equal to the advance to prevent the contractor from retaining the payment without providing the bargained-for services.
Nora Nash, a corporate officer, used company resources to pursue a business opportunity that belonged to the corporation. The corporation sues for recovery of the profits Nash obtained. The court imposes liability to prevent Nash from retaining gains derived from her fiduciary position.
Nancy Nelson, an officer, traded on material nonpublic information and realized substantial profits. Shareholders bring suit seeking recovery of those profits. The court orders disgorgement to prevent Nelson from retaining gains obtained through misuse of corporate information.
Northstar Logistics alleges that a data broker published inaccurate information about it, causing reputational harm. The company sues for statutory damages. The court dismisses the action because Northstar failed to show concrete injury sufficient to satisfy standing requirements.
The principle supports restitution when a benefit has been conferred and retention would be inequitable even though no enforceable contract exists. Courts then order restoration of specific property or a money award measured by the benefit received.
Supporting sources
No. Survivorship rights control title by operation of law. Equity will not impose a constructive trust to circumvent survivorship absent wrongful conduct by the survivor that would produce unjust enrichment.
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Officers and directors may not retain profits obtained by diverting corporate opportunities or trading on inside information. Courts order disgorgement to prevent the fiduciary from keeping gains that belong to the corporation or its shareholders.
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…App. 1977), which had "awarded interest on suspended royalties" based on "the terms of the royalty agreement . . . rather than unjust enrichment." 222 Kan., at 561, 567 P. 2d, at 1317. Significantly, when the Texas Supreme Court subsequently affirmed the Stahl judgment, it relied on the Kansas Supreme Court's decision in Shutts…