What Is Unjust Enrichment In Ontario?

Unjust enrichment is a legal claim that allows you to recover value when someone has been enriched at your expense and keeping that benefit would be unfair. It’s based on a simple principle: people shouldn’t profit from taking advantage of others when there’s no legal justification for keeping that benefit.

This claim often arises when there’s no contract between parties, or when a contract doesn’t cover the situation. It prevents people from being unjustly enriched by your efforts, contributions, or property.

Ontario courts require you to prove three elements to succeed with an unjust enrichment claim.

Enrichment of the Defendant: The other party must have received a benefit. This could be money, property, services, or anything of value. 

Corresponding Deprivation to You: You must have suffered a loss or deprivation that corresponds to their enrichment. You gave up something of value that resulted in their benefit.

Absence of Juristic Reason: There must be no legal justification for the enrichment. This is the key element. Even if someone benefited from you and you suffered a loss, if there’s a good legal reason for this, like a contract or gift, unjust enrichment doesn’t apply.

Contributions To Property: You contribute money or labor to improve your partner’s property, but the property remains solely in their name. When the relationship ends, they keep the property and all improvements. You may have an unjust enrichment claim.

Work Without Payment: You perform services for someone based on an understanding you’ll be compensated, but no formal contract exists. They benefit from your work but refuse to pay. This could be unjust enrichment.

Mistaken Payments: You accidentally pay someone else’s debt or transfer money to the wrong account. The recipient is enriched by your mistake, and keeping the money would be unjust.

If you prove unjust enrichment, courts can order different remedies.

Monetary Award: The most common remedy is a money judgment for the value of the enrichment. Courts calculate what fairly compensates you for your deprivation.

Constructive Trust: In cases involving property, courts may impose a constructive trust giving you an ownership interest in the property proportionate to your contributions.

Quantum Meruit: This remedy awards you the reasonable value of services you provided. It’s often used when you performed work without a contract.

Unjust enrichment claims are complex and fact-specific. Evidence matters enormously. A lawyer can assess your situation, advise on the strength of your claim, help gather necessary evidence, and represent you in negotiations or court.

Contact us at 416.901.9984 or info@pintoshekib.ca.