Legal Question in Real Estate Law in California

Re: Unjust Enrichment

Do you understand the concept of "unjust enrichment?" It is not a means to disgorge a landlord of "excess" profits made from steep rents.

"Unjust enrichment" occurs under the following circumstances, all of which must be alleged in a complaint:

(1) A benefit conferred upon the defendant by the plaintiff;

(2) An appreciation or knowledge by the defendant of the benefit; and

(3) The acceptance or retention by the defendant of the benefit under such circumstances as to make it inequitable for the defendant to retain the benefit without the payment of its value.

An example: A and B are neighboring farmers. B is away from home when a blizzard makes it impossible for him to get back. A feeds B's livestock, preventing their starvation. B must pay A (upon request) for the fair value of the feed furnished, and perhaps the fair value of A's labor, even though no contract existed, because otherwise B would be unjustly enriched at A's expense.

A court will not apply unjust enrichment theory to set aside a lease or other contract on the basis that its performance pursuant to its terms is unfair to one party or the other. There may be other legal doctrines available, such as "unconscionability" or "hardship," but not "unjust enrichment."