Articles Tagged with unjust enrichment

A party that performs services and incurs expenses does not automatically acquire an equitable claim for compensation. In certain circumstances, claims for unjust enrichment or quantum meruit may arise, but these claims require the claimant to prove the defendant either requested the services or at least knowingly accepted the services and retained a benefit under circumstances making nonpayment unjust. In an unpublished decision of the Virginia Court of Appeals earlier this month, a trucking company had incurred time and expenses relating to providing labor, drivers, transportation, and storage in connection with returning dozens of loaded trailers to its former customer. It demanded payment for those services. The customer had made post-termination payments that looked, at least superficially, like recognition of an ongoing obligation. The Court of Appeals, however, held that none of that entitled the trucking company to equitable relief. The trial court found that the customer had terminated the arrangement, paid what it owed, and repeatedly demanded return of its property. The Court of Appeals reasoned that returning property one is already obligated to return confers no benefit for which the law implies a promise to pay.

The case is Webb’s Truck Leasing Corp. v. CHKD Thrift Stores, LLC, Record No. 0246-25-1 (Va. Ct. App. July 21, 2026). The facts go something like this. CHKD Thrift Stores receives donated goods, sells them, and remits the net proceeds to benefit the Children’s Hospital of the King’s Daughters. For years, CHKD and Webb operated under an oral arrangement in which Webb stored and transported trailers holding CHKD’s excess charitable-donation inventory. Beginning in March 2018, CHKD notified Webb that the arrangement was terminated and demanded return of the donations. Webb neither returned the donations nor allowed CHKD to retrieve them. CHKD reiterated the termination in July 2018, paying Webb’s outstanding invoices of $60,694.76 in an effort to make a “clean break.” Then, in a July 1, 2019 letter, CHKD’s counsel declared that all agreements would conclude on August 31, 2019, enclosed a payment of $73,425 stated to satisfy “any and all obligations,” and warned that CHKD would pay “no additional money” and have “[n]o obligation of any kind” to Webb thereafter. Webb cashed the check and admitted that, as of August 31, 2019, CHKD owed it no debt related to the donations.

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When parties invest time, money, and effort into a contract they believe to be enforceable, only to later discover it fails for indefiniteness or some other fatal defect, the legal and financial consequences can be severe. But under Virginia law, an aggrieved party may not be entirely without recourse. In certain cases, unjust enrichment can operate as a fallback remedy when the purported contract is deemed unenforceable.

In Ressa Construction, Inc. v. Dillaman (Va. Ct. App. Sept. 30, 2025), the Virginia Court of Appeals affirmed a circuit court ruling that a construction agreement was an unenforceable “agreement to agree” despite the fact that an installment payment had been made and building plans had been submitted to the county. When a dispute arose between the homeowners and the construction company hired for a remodeling project, the plaintiffs were allowed to back out and recover their deposit on a theory of unjust enrichment. The court held the construction contract was unenforceable as no meeting of the minds was ever reached regarding the scope of the project. The failure of the contract meant that the law of unjust enrichment came into play.

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Express contracts are easy enough to understand. An express contract is a legally enforceable agreement formed by an exchange of promises, the terms of which are declared, either orally or in writing, at the time the agreement is formed. A mutual meeting of the minds is required, and the agreement must be supported by consideration. If I promise to pay you $10 to wash my car, and you accept my offer and proceed to wash my car, we’ve formed a contract and I am legally obligated to fork over that $10. But what if you just decided on your own to wash my car without discussing it with me first? Or maybe I ask you to wash my car and you accept, but we never discuss price? In situations like these, I may still be required to pay you a fair price for the service you provided, even though we never actually formed a contract. The legal concepts involved are known as unjust enrichment and quantum meruit. Let’s review what these related-but-distinct terms mean.

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