Restitution

Question 1

goal of restutition

Answer 1

preventing unjust enrichment

Question 2

general principle of restitution

Answer 2

A person who has been unjustly enriched at the expense of another is required to make restitution to the other.

Question 3

when does the restitution obligation arise?

Answer 3

• The restitution obligation arises at the time the party is unjustly enriched
• E.g., in Delgman, when the aunt dies

Question 4

Deglman v. Guaranty Trust Co. of Canada and Constantineau

Answer 4

• Facts: The plaintiff lived with his aunt and provided services based on her oral promise to leave him her house in her will, which she failed to do.
• Rule: A plaintiff may recover for unjust enrichment (restitution) where the defendant would otherwise have had to pay them on a purely business basis for these services.

Question 5

Atlantic Lottery Corp. Inc. v. Babstock

Answer 5

• Facts: The plaintiffs sought a class action against ALC claiming VLTs are dangerous, seeking a gains-based award quantified by the profit ALC earned by licensing them.
• Rule: The ordinary relief for breach of contract is expectation damages. Disgorgement may be available in exceptional circumstances where damages, specific performance, and injunctions are inadequate, and the plaintiff has a legitimate interest in preventing the defendant’s profit-making activity.