Further Issues (6)

Further Issues in Unjustified Enrichment

  • Key questions to address even if a claim exists:
    • What can the pursuer (P) claim?
    • How much can P claim?
    • 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.