{"id":899014,"date":"2021-08-10T15:35:00","date_gmt":"2021-08-10T21:35:00","guid":{"rendered":"https:\/\/www.myconstructionexpert.com\/blog\/?p=899014"},"modified":"2021-08-06T15:35:49","modified_gmt":"2021-08-06T21:35:49","slug":"unjust-enrichment-express-contract","status":"publish","type":"post","link":"https:\/\/www.myconstructionexpert.com\/blog\/unjust-enrichment-express-contract\/","title":{"rendered":"Unjust Enrichment and Express Contract Don\u2019t Mix"},"content":{"rendered":"\n

Christopher G. Hill | Construction Law Musings<\/a><\/p>\n\n\n\n

I am a huge fan of clearly written construction contracts.\u00a0 Virginia state and federal courts will interpret contract provisions as written and will\u00a0seek to enforce all of those terms\u00a0where possible.\u00a0 Where the contract is ambiguous, we\u00a0construction attorneys\u00a0make money and the\u00a0courts are forced to make decisions\u00a0that the parties may not like.<\/p>\n\n\n\n

A recent case out of the Eastern District of Virginia federal court highlights the ways in which a clear contract affects the claims that can be brought and limits the scope of possible litigation.\u00a0 In\u00a0First Call Environmental LLC v. Murphy Oil USA LLC, the Court looked at a relatively typical Owner, Contractor, Subcontractor set of agreements.\u00a0 In this matter, Murphy Oil entered a contract with National Rapid Response, Inc. (\u201cNRR\u201d) whereby NRR would provide emergency and environmental management and waste disposal services to Murphy Oil. NRR then subcontracted with the Plaintiff First Call to perform the services for Murphy Oil.\u00a0 First Call filed suit against Murphy Oil alleging two counts: breach of contract (based on a third-party beneficiary theory), and unjust enrichment<\/a>.<\/p>\n\n\n\n

The Court reviewed the contracts at issue and concluded that Murphy Oil\u2019s motion to dismiss both counts would be granted.  As to the third-party beneficiary breach of contract count, the Court reviewed the contract between NRR and Murphy Oil containing an unambiguous \u201cno third-party beneficiary\u201d provision and concluded as follows:<\/p>\n\n\n\n

Here, the plain language of the Murphy Oil and NRR contract indicates that Murphy Oil and NRR did not intend to create a third-party beneficiary, First Call may not assert a breach of contract claim as a third-party beneficiary to the Murphy Oil and NRR contract. Accordingly, the court will grant Murphy Oil\u2019s motion to dismiss Count One. (citations omitted)<\/p><\/blockquote>\n\n\n\n

As to Count 2 for unjust enrichment, the Court sustained the Motion to Dismiss reasoning:<\/p>\n\n\n\n

First Call alleges that it had an agreement that it would \u201csubmit invoices to NRR, and NRR would provide the invoices to the end-client, who was ultimately responsible for payment.\u201d In other words, First Call alleges that an express contract between it, NRR, and Murphy Oil required Murphy Oil to pay First Call for the services First Call provided Murphy Oil as NRR\u2019s subcontractor. Thus, an express contract governs the subject matter of First Call\u2019s unjust enrichment claim. (citations omitted)<\/p><\/blockquote>\n\n\n\n

In short, even where it is not written, an express contract bars an unjust enrichment claim.<\/p>\n\n\n\n

As always, I recommend the full opinion (linked above) to your reading and encourage your comments below.<\/p>\n","protected":false},"excerpt":{"rendered":"

Christopher G. Hill | Construction Law Musings I am a huge fan of clearly written construction contracts.\u00a0 Virginia state and federal courts will interpret contract provisions as written and will\u00a0seek to enforce all of those terms\u00a0where possible.\u00a0 Where the contract is ambiguous, we\u00a0construction attorneys\u00a0make money and the\u00a0courts are forced to make decisions\u00a0that the parties may… Continue reading Unjust Enrichment and Express Contract Don\u2019t Mix<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false},"version":2}},"categories":[9],"tags":[9895,224,11519,326],"class_list":["post-899014","post","type-post","status-publish","format-standard","hentry","category-construction-contracts","tag-advise-consult","tag-construction-contract","tag-express-contract","tag-unjust-enrichment","entry"],"jetpack_publicize_connections":[],"yoast_head":"\nUnjust Enrichment and Express Contract Don\u2019t Mix - 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