Unjust enrichment
In the alternative, Erith had argued that it had a claim for the costs of the waste removal service in unjust enrichment. In order to establish such a claim, Erith had to establish that:
• Murphy had been enriched;
• the enrichment was at the expense of Erith;
• the enrichment was unjust; and
• there were no available defences to Murphy.
The court agreed that Murphy was enriched at Erith's expense. The waste removal had enabled Murphy to benefit from the maintenance of MWL's licence (which otherwise would have been withdrawn or suspended) and the increased value of the site. However, it stated that it was common ground that a claim for unjust enrichment will not succeed where there is a subsisting, enforceable contract. In this case, there was a works agreement made between Erith and MWL in respect of the waste removal services. As such, the claim in unjust enrichment failed.
Comment
In conclusion, the court found that there was a valid contract for the waste removal services between Erith and MWL. However, Murphy was never a party to this contract in his personal capacity. Therefore, he did not undertake any personal responsibility for the costs. The court thus dismissed Erith's claims.
This case demonstrates the importance of ensuring that parties agree contractual terms in writing and document their negotiations with sufficient detail. It also indicates the importance of informing all parties involved in the negotiation of a transaction of the details of discussions or amendments to the arrangement or terms. In this case, much of the crucial detail of the evolving deal was discussed only between Darsey and Murphy, either on the telephone or in person, and there were therefore no third parties with whom to verify or corroborate the content of their negotiations at trial. It further highlights how important it is that parties ensure that they understand who the parties are with whom they are contracting; as this case demonstrates, any misunderstanding in that regard can have great adverse consequences.
*This article was originally edited by, and first published on www.internationallawoffice.com.
Erith v Murphy - CONT.