{"id":905115,"date":"2025-12-11T14:30:17","date_gmt":"2025-12-11T21:30:17","guid":{"rendered":"https:\/\/www.myconstructionexpert.com\/blog\/?p=905115"},"modified":"2025-12-11T14:30:21","modified_gmt":"2025-12-11T21:30:21","slug":"quantum-meruit-claims-in-construction-do-they-exist-anymore","status":"publish","type":"post","link":"https:\/\/www.myconstructionexpert.com\/blog\/quantum-meruit-claims-in-construction-do-they-exist-anymore\/","title":{"rendered":"Do Quantum Meruit Claims in Construction Exist Anymore?"},"content":{"rendered":"\n

Jacob Zahniser | Miller Nash<\/a><\/p>\n\n\n\n

On November 13, 2025, the Oregon Court of Appeals published\u00a0Seabold Construction Co., Inc. v. KOZ 2211 SW 4th Avenue, LLC<\/a><\/em>, 344 Or App 688 (2025)\u2014a decision that could signal the death knell for quantum meruit<\/a> (unjust enrichment) claims in Oregon construction.<\/p>\n\n\n\n

The Court\u2019s Decision in Seabold<\/em><\/h4>\n\n\n\n

In Seabold<\/em>, the plaintiff contractor Seabold sued the developer and owner KOZ for both breach of contract and quantum meruit. Seabold alleged KOZ failed to pay for completed work. KOZ moved to dismiss, attaching the written contract, and argued that because the contract was comprehensive\u2014with detailed provisions governing delays, change orders, and compensation\u2014Seabold could not sidestep those terms via a quantum meruit claim.<\/p>\n\n\n\n

The trial court agreed, dismissing the quantum meruit claim for failure to state a claim, and later dismissing Seabold\u2019s amended breach\u2010of-contract complaint with prejudice, citing untimeliness, lack of specificity, and failure to identify the specific contractual provisions supporting its claimed damages. The Court of Appeals affirmed, holding that Seabold\u2019s quantum meruit claim was unavailable where a valid, detailed written contract governed the disputed work.<\/p>\n\n\n\n

Kizer<\/em>: The Precedent Behind Seabold<\/em><\/h4>\n\n\n\n

The Seabold <\/em>decision follows Kizer Excavating Co. v. Stout Bldg. Contractors, LLC, <\/em>324 Or App 211 (2023). In Kizer,<\/em> an excavation subcontractor, Kizer, encountered unanticipated site conditions\u2014including an incorrect survey and groundwater\u2014on a commercial project. Kizer completed substantially more excavation than the parties originally estimated and later submitted a change order for additional compensation that the general contractor Stout rejected as untimely. Kizer sued asserting breach of contract and quantum meruit. The trial court awarded Kizer damages on a quantum-meruit theory, treating the work as \u201cextracontractual\u201d once the change order was rejected.<\/p>\n\n\n\n

The Oregon Court of Appeals reversed. It held that the extra excavation did not fall outside the subcontract\u2019s scope such that an implied-in-law (quasi-contract) recovery was available. Because the parties\u2019 express subcontract governed the risk and provided the procedure for seeking additional compensation, Kizer could not circumvent those contractual procedures by recovering in quantum meruit. As the Court stated, \u201cif a dispute is governed by an express contract, no contract will be implied either in fact or in law, and the terms of the express contract control.\u201d<\/p>\n\n\n\n

Together, Seabold<\/em> and Kizer <\/em>underscore a strict, contract-formalistic approach: when parties have entered a written agreement that expressly addresses change orders, time, costs, and other risk\u2010allocation mechanisms, a contractor cannot ignore those provisions and instead rely on equitable or restitutionary remedies. In both Seabold <\/em>and Kizer, <\/em>the contractors attempted to reframe contract-governed issues\u2014delay impacts in Seabold <\/em>and extra work in Kizer<\/em>\u2014as unjust enrichment. In both cases, the Court rejected the claims.<\/p>\n\n\n\n

Where Hoffman <\/em>Differs from Kizer<\/em><\/h4>\n\n\n\n

What makes Kizer <\/em>interesting is its contrast with City of Portland ex rel. Donohue & Fleskes Corp. v. Hoffman Const. Co<\/em>., 286 Or 789 (1979), which the Seabold <\/em>Court mentioned in a passing footnote, but never discussed. In Hoffman<\/em>, subcontractor Donohue & Fleskes sought quantum meruit recovery after general contractor Hoffman allegedly breached the subcontract, interfered with performance, and ultimately wrongfully terminated the subcontract.<\/p>\n\n\n\n

The Oregon Supreme Court in Hoffman <\/em>held that quantum meruit was available under such circumstances. The subcontractor could recover the \u201creasonable value\u201d of its labor, materials, and services when the general contractor\u2019s conduct made performance substantially more difficult or costly, even if a contract existed. As the Court explained:<\/p>\n\n\n\n

“Our cases recognize that quantum meruit recovery is available to a contractor whose performance has been made substantially more difficult and costly by the other party’s actions, and that a finding that an abandonment of the contract can be inferred from the parties’ actions is not required.”
\u2014 Hoffman, 286 Or at 798.<\/p>\n\n\n\n

In other words, Hoffman<\/em> recognized an equitable carve-out to strict contract enforcement. Where owner or contractor misconduct frustrates contract performance, a quantum meruit claim may still be available \u2013 even if the contract has not been abandoned.<\/p>\n\n\n\n

Hoffman <\/em>Applied in TBH<\/em><\/h4>\n\n\n\n

The District of Oregon applied this exception in Hoffman<\/em> in United States ex rel. TBH & Associates, LLC v. Wilson Construction Co.,<\/em> 965 F. Supp. 2d 1215 (D. Or. 2013). In TBH<\/em>, a subcontractor on a Bonneville Power Administration transmission\u2011line project, TBH, claimed the general contractor Wilson Construction failed to pay under several change orders and also asserted a quantum meruit claim. Wilson moved for partial summary judgment to dismiss both the change\u2011order and quantum meruit claims.<\/p>\n\n\n\n

Rather than dismissing the unjust enrichment claim, the Court rejected Wilson\u2019s request and held that TBH\u2019s quantum meruit claim was viable under Oregon law. Crucially, the Court based its reasoning on the decision in Hoffman<\/em>, recognizing that a subcontractor may recover the reasonable value of its services when the other party’s conduct has made performance substantially more onerous. The Court observed that TBH had presented factual issues showing that Wilson\u2019s actions potentially frustrated the change\u2011order process or imposed unanticipated burdens\u2014circumstances paralleling Hoffman<\/em>. By allowing the quantum meruit claim to proceed, the TBH <\/em>court underscored that equitable relief remains available even when a written contract exists, at least where there is a factual basis for equitable disruption or misconduct. This reflects Hoffman\u2019s<\/em> core principle: in construction, strict contract formalism may give way to restitution when one party\u2019s behavior materially alters the agreed\u2011upon allocation of risk.<\/p>\n\n\n\n

The Tension:\u00a0Hoffman\u00a0<\/em>and\u00a0TBH\u00a0<\/em>vs.\u00a0Seabold\u00a0<\/em>and\u00a0Kizer<\/em><\/h4>\n\n\n\n

Seabold <\/em>and Kizer <\/em>retreat from the more flexible, equitable remedy endorsed in Hoffman <\/em>and TBH<\/em>. They emphasize that if the contract covers the relevant risk and change-management mechanisms, then the contractor is bound by those terms and cannot recharacterize its dispute as unjust enrichment. Seabold<\/em> and Kizer<\/em> implicitly reject a \u201cHoffman<\/em>-style\u201d exception because, in their view, the contract is sufficiently comprehensive to govern all these issues\u2014even though neither the Seabold <\/em>nor Kizer<\/em> court discuss Hoffman<\/em>.<\/p>\n\n\n\n

The tension with Seabold <\/em>and Kizer, <\/em>on the one hand, and Hoffman<\/em> and TBH,<\/em> on the other, thus arises. Hoffman\u2014<\/em>and TBH<\/em>\u2019s use of it\u2014exemplifies situations in which equitable relief via quantum <\/em>meruit is justified because \u201cperformance was made substantially more onerous\u201d by the other party, disrupting the contract\u2019s allocation of risk. But in Seabold <\/em>and Kizer<\/em>, the contract itself already allocated those risks\u2014via delay provisions, change-order process, cost\u2011adjustment mechanisms\u2014and Seabold failed to allege facts showing a Hoffman<\/em>\u2011style disruption. Perhaps Seabold<\/em> suggests that the \u201cHoffman <\/em>exception\u201d does not automatically apply simply because there are cost overruns or delay-related hindrances, but Seabold<\/em> never discusses Hoffman <\/em>except in a passing footnote.<\/p>\n\n\n\n

Thus, when the contract already contemplates and provides a mechanism for handling such issues, as just about everyone does, then there may be no claim for quantum meruit. However, if there is specific misconduct\u2014owner\/construction manager conduct, interference, unknown site conditions\u2014that frustrate or make performance materially more burdensome, perhaps there may be a claim for quantum meruit.<\/p>\n\n\n\n

\n\n\n\n

When one of your cases is in need of a construction expert, estimates, insurance appraisal or umpire services in defect or insurance disputes – please call Advise & Consult, Inc. at 888.684.8305, or email experts@adviseandconsult.net<\/a>.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Jacob Zahniser | Miller Nash On November 13, 2025, the Oregon Court of Appeals published\u00a0Seabold Construction Co., Inc. v. KOZ 2211 SW 4th Avenue, LLC, 344 Or App 688 (2025)\u2014a decision that could signal the death knell for quantum meruit (unjust enrichment) claims in Oregon construction. The Court\u2019s Decision in Seabold In Seabold, the plaintiff contractor Seabold… Continue reading Do Quantum Meruit Claims in Construction Exist Anymore?<\/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":[9895,224,320,325],"class_list":["post-905115","post","type-post","status-publish","format-standard","hentry","category-construction-contracts","tag-advise-consult","tag-construction-contract","tag-oregon","tag-quantum-meruit","entry"],"jetpack_publicize_connections":[],"yoast_head":"\nDo Quantum Meruit Claims in Construction Exist Anymore? 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