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

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  RESTITUTION AND UNJUST ENRICHMENT 3D



                                   PART   I. INTRODUCTION

                             CHAPTER 1. GENERAL PRINCIPLES

§ 1. Restitution and Unjust Enrichment

C.A.4, 2020. Com. (b) cit. in sup. Home buyers filed a putative class action against real-estate broker
that represented them in purchasing a new home and against title company that provided them with
settlement services in connection with the sale, alleging that title company paid kickbacks to broker for
referring it to plaintiffs in violation of the Real Estate Settlement Procedures Act. The district court
granted summary  judgment for defendants, finding that plaintiffs failed to show that they suffered an
injury-in-fact for purposes of standing, because there was no evidence that plaintiffs were actually
deprived of impartial and fair competition among settlement-service providers. Affirming, this court
held that plaintiffs could not demonstrate that they suffered an injury based on a theory that defendants
were unjustly enriched under Restatement Third of Restitution and Unjust Enrichment § 1, because
plaintiffs did not provide any evidence that the benefit purportedly obtained by broker-the kickback
worked  any harm other than the alleged violation of the Act. Baehr v. Creig Northrop Team, P.C., 953
F.3d 244, 257.

Ariz.App.2019.  Com. (e)(2) quot. in sup. After a municipal court convicted motorist of violating a state
statute criminalizing moving violations that caused serious injury or death, and ordered him to pay
restitution in the amount of $61,191.99, the trial court reviewing the case reversed, finding that the
award violated a statutory $10,000 cap on restitution for victims of specified criminal driving offenses.
Reversing and reinstating the municipal court's order, this court held that the statutory cap violated the
right to restitution guaranteed in the Arizona Constitution's Victims' Bill of Rights. The court reasoned
that the plain language of the Victims' Bill of Rights implicated the full restoration of a victim's
economic  loss, consistent with the ordinary meaning of restitution as set forth in Restatement Third of
Restitution and Unjust Enrichment § 1. State v. Patel, 452 P.3d 712, 714.

Cal.App.2019.  Coins. (b), (c), and (e)(3) quot. in sup. In a putative class action, server at a banquet
facility filed claims for violations of the state labor statute, intentional interference with advantageous
relations, breach of implied contract, and unjust enrichment against facility's owner, alleging that owner
failed to distribute the entire amount of a mandatory service charge that it collected from customers to
employees  who served food or beverages at the facility. The trial court sustained owner's general
demurrer without leave to amend, finding, among other things, that California did not recognize a cause
of action for unjust enrichment. This court reversed, holding that, even if unjust enrichment did not
describe an actual cause of action, the term was synonymous with restitution, which could be a theory of
recovery under Restatement Third of Restitution and Unjust Enrichment § 1. The court pointed out that
plaintiff alleged that she and her fellow workers were entitled to restitution of the service charges that
were wrongfully withheld from them, and noted that restitution was potentially available as a remedy for
plaintiff's claims for breach of implied contract and violation of the state labor statute. O'Grady v.
Merchant Exchange  Productions, Inc., 254 Cal.Rptr.3d 494, 510.

                             COPYRIGHT ©2020 By THE AMERICAN LAW INSTITUTE
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                                     Printed in the United States of America
          For earlier citations, see the Appendices, Supplements, or Pocket Parts, if any, that correspond to the subject matter under examination.

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