Although California does not recognize unjust enrichment as a standalone cause of action, it is often pleaded as a remedy or theory in restitution.
Courts analyze unjust enrichment claims under the principles of quasi-contract or restitution.
To establish a claim for unjust enrichment, the following elements are typically considered:
- Receipt of a Benefit: The defendant has obtained a benefit, such as money, services, or property.
- Unjust Retention of the Benefit: It would be inequitable or unjust for the defendant to retain the benefit without compensating the plaintiff.
Case Law Reference: Durell v. Sharp Healthcare, 183 Cal.App.4th 1350, 1370 (2010).
(15) “[T]here is no cause of action in California for unjust enrichment.” (Melchior v. New Line Productions, Inc. (2003) 106 Cal.App.4th 779, 793 [131 Cal.Rptr.2d 347]; see McKell v. Washington Mutual, Inc., supra, 142 Cal.App.4th 1457, 1490.) Unjust enrichment is synonymous with restitution. (Dinosaur Development, Inc. v. White (1989) 216 Cal.App.3d 1310, 1314 [265 Cal.Rptr. 525].)
(16) “There are several potential bases for a cause of action seeking restitution. For example, restitution may be awarded in lieu of breach of contract damages when the parties had an express contract, but it was procured by fraud or is unenforceable or ineffective for some reason. [Citations.] Alternatively, restitution may be awarded where the defendant obtained a benefit from the plaintiff by fraud, duress, conversion, or similar conduct. In such cases, the plaintiff may choose not to sue in tort, but instead to seek restitution on a quasi-contract theory…. [Citations.] In such cases, where appropriate, the law will imply a contract (or rather, a quasi-contract), without regard to the parties’ intent, in order to avoid unjust enrichment.” (McBride v. Boughton (2004) 123 Cal.App.4th 379, 388 [20 Cal.Rptr.3d 115], fn. omitted.)
(17) “Under the law of restitution, `[a]n individual is required to make restitution if he or she is unjustly enriched at the expense of another. [Citations.] A person is enriched if the person receives a benefit at another’s expense. [Citation.]’ [Citation.] However, `[t]he fact that one person benefits another is not, by itself, sufficient to require restitution. The person receiving the benefit is required to make restitution only if the circumstances are such that, as between the two individuals, it is unjust for the person to retain it. [Citation.]'” (McBride v. Boughton, supra, 123 Cal.App.4th at p. 389.) As a matter of law, an unjust enrichment claim does not lie where the parties have an enforceable express contract. (California Medical Assn v. Aetna U.S. Healthcare of California, Inc. (2001) 94 Cal.App.4th 151, 172 [114 Cal.Rptr.2d 109].)
An unjust enrichment theory is inapplicable because Durell alleges the parties entered into express contracts. Further, as the court noted, Durell failed “to allege [he] paid in excess of reasonable value for the services [he] received or that the services were not worth what [he] paid for them.” The SAC alleges Sharp charged Durell a total of $21,188.12 for services rendered during his five emergency room visits, but it does not allege what amount of those charges Durell has paid. During the hearing on Durell’s motion for 1371*1371 reconsideration of the demurrer ruling, and for leave to filed his proposed TAC, he presented evidence he belatedly paid a bill from Sharp “that was originally $1522 but with `collection’ fees ballooned to $2,098.85.” Durell does not assert Sharp’s retention of the $2,098.85, less than 10 percent of its total billings, would be unjust.
(18) “`There is no equitable reason for invoking restitution when the plaintiff gets the exchange which he expected.'” (Peterson v. Cellco Partnership, supra, 164 Cal.App.4th 1583, 1593.) “If the money is paid in satisfaction of an obligation actually owed by the plaintiff, he or she is obviously not entitled to restitution even though the performance was induced by mistake or fraud.” (1 Witkin, Summary of Cal. Law, supra, Contracts, § 1025, p. 1117.)
