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.