How does unjustified enrichment interact with other legal areas?
Claims in Unjustified Enrichment
What can P claim?
Shilliday v Smith (1998) established the following claims:
Restitution: Return of property (e.g., a car).
Repetition: Repayment of an equivalent sum of money.
Recompense: Payment for the value of an intangible benefit, e.g., services rendered.
Causes of Action and Responses/Remedies
Conferral of an Undue Benefit: (condictio indebiti) - unjustified benefit transfer.
Benefit for a Future Purpose Failed: (condictio causa data causa non secuta) - benefit with no fulfillment.
Imposition of a Benefit in Good Faith: Conflicts with delict actions (e.g., negligence), breach of contract results in:
Restitution to the P
Repetition
Recompense
Compensatory Damages
Specific Implement: Contracts enforcement.
Interdict: Preventing breaches.
How Much Can P Claim?
Measure of Recovery
P can recover D's enrichment at P’s expense. The recovery amount depends on:
Type of claim (imposition vs interference claims).
Availability of defense based on change of position.
Imposition vs Interference Claims
Imposition Claims: Capped at the lesser of D's gain or P's loss (Bell, Principles, para 538).
Interference Claims: No cap on recovery; measured by D's enrichment (Secretary of State for Defence v Johnstone, 1997).
Defining Enrichment in Interference Cases
If P makes D’s property into another form, P owes D the pre-transformation value (Oliver and Boyd v Marr Typefounding Co Ltd, 1901).
If P sells D’s property to third parties, D owes P any profit from the sale (Harper Collins Publishers Ltd v Young, 2007).
The Change of Position Defence
Credit Lyonnais v George Stevenson & Co Ltd (1901): Key points:
D had reasonable grounds to believe the enrichment was theirs.
D acted on that belief, altering their position.
It would be unjust to require D to return the enrichment.
Recent case: Alliance Trust Savings Ltd v Currie (2016) discusses this doctrine.
Interface Issues with Other Legal Areas
External Subsidiarity
In Scots law, unjustified enrichment is subsidiary to:
Contractual Remedies: A contractual remedy typically precludes unjustified enrichment claims (Dollar Land (Cumbernauld) v CIN Properties, 1998).
Statutory Remedies: E.g., Transco Plc v Glasgow City Council, 2005.
Examples of External Subsidiarity
Exception example: Cantiere San Rocco v Clyde Shipbuilding (1923) for condictio causa data causa non secuta.
Practical examples include Connelly v Simpson (1993) regarding the applicability of subsidiarity.
Legal Application: Courtney’s Executors v Campbell
P enriched D by £150,000 under cohabitation expectation; after separation, a claim failed due to available statutory remedies (Family Law (Scotland) Act 2006, s 28).
Contrast with Pert v McCaffrey (2020), which challenged the applicability of Courtney's Executors.
Other Legal Areas
Property Law: Unjustified enrichment serves as corrective means to property law's rigidity; property claims generally preferred if available.
Delict Law: Choice between delict and unjustified enrichment claims.
Key Terminology
Rights Classification
Rights in rem (real rights): Ownership and subordinate rights, often phrased in terms of ownership.
Rights in personam (personal rights): Obligations from contracts, delict, unjustified enrichment, phrased in terms of duty/burden between creditor and debtor.
Claim Analysis
Sandra delivers a car worth £100 under a void contract to Jack, who also owes Bill £100.
In Solvency Outcome: Both Sandra and Bill will receive £50 each due to Jack’s limited assets (only £100 total).
Property Law Claim Example
If Sandra retains ownership of the car at contract discovery, she can recover the car as a right in property law (vindicatio), negating unjustified enrichment reliance.
Case Studies in Unjustified Enrichment
Harper Collins Publishers Ltd v Young
Shows the preference for unjustified enrichment claims over property claims for easier substantiation.
Summary Points
Unjustified enrichment claims enable various legal remedies based on received benefits' nature.
Recovery measures focus on defender’s enrichment at pursuer’s expense but differ by context and claim type.
General rule: Existing contractual/statutory claims preclude unjustified enrichment claims; however, property and delict claims coexist without nullifying unjustified enrichment.