Lloyd's Maritime and Commercial Law Quarterly
UNJUST ENRICHMENT IN THE USA
Mark Gergen *
ANNUAL SURVEY
A handful of cases this year illustrate how restitution operates in the shadow of a possible contract when the plaintiff seeking compensation for a benefit conferred is a sophisticated party. City National Bank of Florida as Trustee of Land Trust No 2400-9492-00 v Signature Land Inc (§109) and Layman Lane LLC v Suburban Sewer Improvement District #239 (§118) deny a claim for a benefit conferred in anticipation of a contract where the plaintiff knew they did not have a contract and were a sophisticated party who could be expected to obtain a contract. Core Finance Team Affiliates LLC v Maine Medical Center (§111), S6 LLC v Wing Enterprises Inc. (§127) and Taxinet Corp v Leon (§130) allow the claim to proceed where a sophisticated plaintiff mistakenly believed they had a contract while putting a heavy burden on the plaintiff to establish the value of the benefit conferred.
Two cases involve grossly excessive disgorgement awards. Pegasystems Inc v Appian Corp (§125) reversed a $2 billion award for misappropriation of a trade secret. The award comprised the defendant’s entire profit for several years. The jury instruction did not require the plaintiff to establish a causal connection between the trade secret and any of the defendant’s sales. Swinomish Indian Tribal Community v BNSF Railway Co (§129) is an award of the defendant’s entire profit from transporting thousands of carloads of oil 1,500 miles where the trains crossed a 0.7-mile easement over the plaintiff’s land and the defendant knew this load of traffic violated the easement. The court did not consider the profit the defendant might have made using its trains and cars in other projects, and it gave the defendant no credit for the contribution of its resources in making the profit.
CASES
105.
AXE Properties & Management LLC v Merriman
(2024) 261 Md App 1
Availability of an unjust enrichment claim when the subject matter of the claim is covered by an express contract—fraud exception—election of remedies
AXE purchased a house at a foreclosure auction, renovated it and resold the house to Merriman for $255,000. Merriman quickly discovered numerous problems in the house, which he purchased “as is”. Merriman filed a complaint claiming that there were undisclosed latent defects and seeking relief on grounds that included breach of contract,
Unjust enrichment in the USA
683