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Quantum Meruit Remedy: Fair Compensation Based Upon the Value of Work or Thing
Question: How can quantum meruit help in family law cases?
Answer: Quantum meruit provides a framework for compensation in situations where contractual agreements are unclear or unavailable, ensuring fairness in financial matters related to family law cases. Denali Paralegal Services can guide individuals through these complexities, helping to secure rightful compensation and uphold fairness in challenging situations.
Quantum Meruit Involving Fairness Principles
Quantum meruit is a legal concept based upon the Latin phrase meaning “as much as is deserved” and is used to determine an amount of compensation that is owed for services rendered or goods provided when a contract price is lacking or is unenforceable. The quantum meruit principle is often used in legal cases where a person provided services to another person or entity, such as a contractor providing services to a homeowner; however, the principle may also be applicable in a variety of legal contexts such as contract disputes, employment disputes, misrepresentation disputes, and even in cases of fraud. The quantum meruit principle helps to ensure that deserved compensation is provided to a person.
The Law
The principles of quantum meruit were defined and explained in the frequently referenced case of 936464 Ontario Ltd. v. Mungo Bear Ltd., 2003 CanLII 72356, wherein it was said:
[18] Even with respect to quantum meruit itself, the authorities are often contradictory as to its nature. The term is defined in Black's Law Dictionary, 7th ed. (St. Paul: West 1999) as follows: "At common law, a count in an assumpsit action to recover payment for services rendered to another person." However, the term is further defined as follows:
"Quantum meruit is still used today as an equitable remedy to provide restitution for unjust enrichment. It is often pleaded as an alternative claim in a breach-of-contract case so that the plaintiff can recover even if the contract is voided."
[19] In the leading constructive trust case of Peter v. Beblow, 1993 CanLII 126 (SCC), [1993] 1 S.C.R. 980, [1993] S.C.J. No. 36, at p. 987 S.C.R., McLachlin J. (as she then was) considered quantum meruit to be an equitable remedy:
"Unjust enrichment" in equity permitted a number of remedies, depending on the circumstances. One was a payment for services rendered on the basis of quantum meruit or quantum valebat. Another equitable remedy, available traditionally where one person was possessed of legal title to property in which another had an interest, was the constructive trust.
Calculation
Determining an appropriate value for quantum meruit claims can be difficult and may appear somewhat as an arbitrary sum. In the context of quantum meruit for work performed, such as in a construction or renovation project, should the quantum meruit be based upon costs expended, industry cost standards, or the value received by the recipient? As explained by the Supreme Court in the cases of Kerr v. Baranow, [2011] 1 S.C.R. 269, as well as Soulos v. Korkontzilas, [1997] 2 S.C.R. 217, there are a various approaches that may be applied and the outcome should be based on what is fair and just. Specifically, in Kerr and Soulos, it was said:
[74] ... It might be assessed, for example, by the cost to the plaintiff of providing the service, the market value of the benefit, or even the value placed on the benefit by the recipient: P. D. Maddaugh and J. D. McCamus, The Law of Restitution (loose-leaf ed.), vol. I, at §4:200.30. The important point, however, is that quantum meruit is simply one of the established categories of unjust enrichment claims. There is no reason in principle why one of the traditional categories of unjust enrichment should be used to force the monetary remedy for all present domestic unjust enrichment cases into a remedial straitjacket.
34 ... Equitable remedies are flexible; their award is based on what is just in all the circumstances of the case.
Conclusion
Quantum meruit is a key equitable remedy that allows for reasonable compensation when services are rendered without a binding contract. Quantum meruit plays an important role in preventing unjust enrichment and supports fairness within cases involving incomplete or unenforceable agreements.