Unjust Enrichment
Definition
A damages measure that focuses on the benefit the defendant gained from the wrongful conduct rather than the loss the claimant suffered. It applies when the defendant's gain is identifiable and the claimant's loss is harder to quantify.
- Focus
- Defendant's gain, not claimant's loss
- Applies when
- Defendant's gain is identifiable, claimant's loss harder to quantify
- Field
- Damages quantification in civil and fraud matters
- Contrast
- Compensatory damages, which measure the claimant's loss
Common questions
Why would a claimant choose an unjust enrichment measure over compensatory damages?+
If the wrongdoer profited substantially but the claimant's own provable loss is small or hard to trace, such as a misappropriated business opportunity, disgorging the defendant's gain can yield a larger and more defensible recovery than proving lost profit.
What kind of forensic accounting work supports an unjust enrichment claim?+
The analyst traces and quantifies the benefit that flowed to the defendant, such as saved costs, diverted revenue, or increased asset value, which is a different exercise from calculating the claimant's own lost income or expenses.
Related terms
- Avoided Costs
- The costs the claimant did not incur because the wrongful conduct interrupted operations. In a lost-profits calculation, avoided variable costs are deducted...
- But-for Scenario
- The hypothetical financial position the claimant would have been in had the wrongful conduct not occurred. The damages figure is the difference...
- Diminution in Value
- The reduction in the market value of a business or asset attributable to the defendant's conduct. Used when lost profits are not...
- Discount Rate
- The rate used to convert future projected cash flows to their present value. It reflects the time value of money and the...
- Lost Profits
- The net income the claimant would have earned during the damages period but for the defendant's wrongful conduct. It focuses on the...