Quantum Meruit – What is a Quantum Meruit Claim?
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April 17, 2018Quantum Meruit – What is a Quantum Meruit Claim?
Quantum Meruit is Latin for “as much as he deserves”.
When A and B enter into an oral agreement and A does not honour the terms of the agreement it is possible for B to seek judicial intervention to enforce the agreement made with A.
In these cases, the court will need to determine whether or not the agreement is properly considered a contract. If not, B will have to rely on the doctrine of quantum meruit to enforce the terms of the agreement.
A Quantum Meruit claim often occurs in the following situation:
- A and B are friends, acquaintances, neighbours or family members.
- B is elderly or ill.
- B needs constant care, supervision and/or assistance.
- A and B agree that if A acts as the primary caregiver for B until he/she passes away that A would be “taken care of financially” in B’s will and/or by B’s estate.
- A moves into B’s home to act as his/her caregiver relying on the promise made by B and A believes that he/she will be financially compensated for acting as B’s caregiver.
- As B’s primary caregiver A becomes a caregiver, cook, cleaner, landscaper, shopper, nurse, etc.
- Throughout this time, B tells his/her friends, family members and/or acquaintances of his relationship with A and that A is going to be taken care of, as agreed.
- B passes away (for example) 2 years later.
- A is left nothing in B’s will or B dies without a will.
In these cases, the court relies on the equitable doctrine of quantum meruit and determine the adequate, reasonable compensation for A’s services.
Quantum Meruit comes into play is when there is no legal agreement, but one of the parties through wrongful conduct gets a windfall or benefit unjustly. The party against whom the remedy is being sought must have done something wrong and received a benefit.
The scenario involving A and B can properly be considered as unjust enrichment as B was unjustly enriched by A’s care-giving and A was deprived of adequate compensation. In these cases, A would seek either enforcement of the agreement and/or compensation.
