Unjust Enrichment as a Cause of Action in New York

Unjust enrichment is a legal claim used to recover money or benefits that someone received unfairly. In New York, this claim does not depend on the existence of a formal contract. Instead, it is based on the idea that no one should benefit at another’s expense in a way that is unfair or unjust. Courts look at fairness rather than strict contract law when deciding these cases.

To succeed in a claim for unjust enrichment, the plaintiff must prove three key elements.

The Other Party Was Enriched

The first element is that the defendant received a benefit. This could be money, goods, services, or anything else of value. For example, if someone mistakenly pays a contractor for work the contractor never performed, the contractor has been enriched by receiving money without offering anything in return.

The enrichment can also come in the form of property improvements, valuable information, or other non-monetary gains. The focus is simply on whether the defendant got something of value.

At That Party’s Expense

Next, the plaintiff must show that the enrichment came at their expense. This means that the benefit the defendant received directly or indirectly caused the plaintiff a financial loss or deprived them of something they were entitled to.

In the contractor example, the plaintiff’s money is gone and was used to benefit the contractor, even though the contractor did not earn it. The enrichment and the expense are directly linked.

It Is Against Equity and Good Conscience to Allow the Enrichment

The final element involves fairness. Even if someone receives a benefit and it came from the plaintiff, courts will not step in unless it would be unfair for the defendant to keep it. Courts ask whether allowing the defendant to retain the benefit would go against basic fairness or conscience.

For instance, if the defendant kept money they knew was mistakenly sent to them, or took advantage of someone in a vulnerable position, courts are more likely to find unjust enrichment. However, if the enrichment happened as part of a fair deal or due to the plaintiff’s voluntary actions without mistake, the court may not intervene.

Conclusion

Unjust enrichment is a powerful legal tool in New York when there is no contract but someone has clearly benefited at another’s expense in a way that is not fair. Plaintiffs must show that the other party was enriched, that it cost them something, and that keeping the benefit would violate principles of fairness. This cause of action is often used when formal agreements are lacking but fairness still demands a remedy.

Find the Law

“To prevail on a claim of unjust enrichment, a party must show that (1) the other party was enriched, (2) at that party’s expense, and (3) that ‘it is against equity and good conscience to permit [the other party] to retain what is sought to be recovered.” Suntrust Mortg., Inc.v Mooney, 113 AD3d 836, 837, citing Citibank, N.A. v Walker, 12 AD3d 480 [2d Dept 2004]. Eastchester Fire Dist. v. Condon, 2017 N.Y. Slip Op. 32975, 3-2014 (N.Y. Sup. Ct. 2017)