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Case Citations [1] (July 2019 - April 2020)

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  RESTITUTION AND UNJUST ENRICHMENT 3D



                                   PART   I. INTRODUCTION

                            CHAPTER 1. GENERAL PRINCIPLES

§ 1. Restitution and Unjust Enrichment

C.A.8, 2019. Com. (b) quot. in case quot. in diss. op. Phone carrier service company brought a lawsuit
against conference call service company, alleging, inter alia, that defendant was unjustly enriched
through an illegal scheme by inducing local phone carrier company to bill impermissible access charges
to plaintiff. After several appeals and remands, the district court granted defendant's motion to dismiss.
This court affirmed, holding that the district court did not err in finding that defendant was not unjustly
enriched, because defendant had earned the benefit conferred onto it by plaintiff by providing technical
support and website services. The dissent argued that the district court abused its discretion, because it
failed, under Restatement Third of Restitution and Unjust Enrichment § 1, Comment b, to give sufficient
weight to the fact that defendant and local phone carrier's scheme was illegal and did not have plaintiff s
consent. Qwest Communications  Corporation v. Free Conferencing Corporation, 920 F.3d 1203, 1208.

N.D.Ill.Bkrtcy.Ct.2019. Com. (c) quot. in ftn. After debtor filed for Chapter 13 bankruptcy, creditors
brought, among other things, a claim for quantum meruit against debtor, alleging that, even though
debtor had orally promised to hold real property on creditors' behalf in exchange for monies, he sold the
property for profit and was unjustly enriched. This court overruled in part debtor's objection to
creditors' claim, holding that debtor was unjustly enriched, because debtor had sold the property for
profit while retaining creditors' earnest money payments. The court cited Restatement Third of
Restitution and Unjust Enrichment § 1, Comment c, in noting that the use of the term restitution to
denote liability based on unjust enrichment was confusing, because there were instances in which
unjust-enrichment claims did not involve the restoration of anything previously possessed by claimant.
In re Rowell, 606 B.R. 329, 344.

Fla.App.2018. Quot. in sup. Medical providers brought claims for, among other things, breach of
fiduciary duty against prospective investors that used plaintiffs' confidential information to form a
competing business. After a bench trial, the trial court found in favor of plaintiffs and, on remand,
awarded plaintiffs a reduced amount of damages. This court reversed in part and remanded for entry of
an award based on the full amount of out-of-pocket damages established by the testimony of plaintiffs'
experts. The court reasoned, in part, that the trial court improperly reduced plaintiffs' damages based on
their supposed lack of business skills, noting that, under Restatement Third of Restitution and Unjust
Enrichment § 1, disgorgement was an equitable remedy intended to prevent unjust enrichment by
stripping wrongdoers of the gains from their misconduct, and that disgorgement could be awarded even
if the claimant did not sustain any loss. Bailey v. St. Louis, 268 So.3d 197, 201.

N.Y.Sup.Ct.App.Div.2019.   Com. (a) cit. in sup. Following insured's lawsuit against insurer for failure
to indemnify it in an underlying personal-injury lawsuit, insurer entered into a settlement agreement
with third-party insurer that had indemnified insured in the personal-injury action. Insurer filed a cross-

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          For earlier citations, see the Appendices, Supplements, or Pocket Parts, if any, that correspond to the subject matter under examination.

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