Class 8, Thursday, Jan. 26. Announcements Friday: read pp. 146-59; Problem 2-2(158-59); recap Today’s agenda Katz v. Danny Dare Shoemaker v. Commonwealth Bank Restitution in the absence of a promise. Tomorrow is Friday. Katz v. Danny Dare. Missouri Court of Appeals
Friday: read pp. 146-59; Problem 2-2(158-59); recap
Katz v. Danny Dare
Shoemaker v. Commonwealth Bank
Restitution in the absence of a promise
Missouri Court of Appeals
610 S.W.2d 121 (1980)
Feinberg v. Pfeiffer
Pitt v. McGraw-Edison
In light of Katz, was Plowman decided incorrectly? Is Plowman more like Katz, Hayes v. Plantations Steel Co. (note 3), or Pitt?
Employment Retirement Income Security Act of 1974
Pennsylvania Superior Court
700 A.2d 1003 (1997)
A good exercise: construct hypos based on the brief parentheticals for the successful and unsuccessful causes of action based on promissory estoppel.
For our purposes, do not concern yourself with subsection 2 of §90 dealing with charitable subscriptions and marriage settlements.
Historically: 4 categories where promissory estoppel generally arose
Induced? Was the person's freedom to act or not act affected/influenced/induced by the promise?
Was action/forbearance detrimental to promisee? Consider Vastoler v. American Can Co.
First see if a breach of contract claim can be brought based on mutual assent and consideration. If that fails, see if you can bring an alternative basis for recovery such as promissory estoppel/reliance OR restitution, which we will cover on Thursday.
Implied-in-law contract (different from an implied-in-fact contract)
Many names, a lot of confusion.
A person who has been unjustly enriched at the expense of another is required to make restitution to the other.
2. under circumstances where retention of benefits would be unjust
Supreme Court of Iowa
608 N.W.2d 20 (2000)
A person who has supplied things or services to another, although acting without the other’s knowledge or consent, is entitled to restitution therefor from the other if
(a) he acted unofficiously and with intent to charge therefor, and
Illustration 3, §116.
A is seriously hurt in an accident. Becoming hysterical with pain, he fights his rescuers and refuses to permit anyone to touch him. Over his protests, B, a surgeon, renders first aid services in stopping a hemorrhage which soon would have caused A’s death. B is entitled to compensation from A.
Note 2. In re Estate of Crisan, 107 N.W.2d 907 (Mich. 1961).
A city, which had taken an unconscious person to a hospital, and which had furnished hospital service to the patient who died without regaining consciousness, filed a claim against her estate for hospital services.
§116 covers aid to protect person; §117 covers aid to protect property (see note 4)
**very similar in approach
Starting point--presumption of gratuitousness
To prevail, must show:
What if I were to find a stranger who is unconscious and I render CPR, which saves the person’s life. I am not a medical doctor. Do I have a restitution claim?
I see a stranger lying unconscious on the side of the road. I pick up the stranger and drive her to the nearest hospital. May I recover based on restitution?
Var. 1. Would it matter if I were driving a taxi cab?
Var. 2. Would it matter if the nearest hospital were 300 miles away?
A roofer stops by your house, notices that your roof is about to cave in. The roof does indeed require repair. The roofer fixes the roof, does a good job. When you arrive home, you are presented with a bill for a reasonable amount for the materials and services. Are you liable?
Relationship between contract and restitution. Last paragraph on p.123. Two cases cited—look at the parentheticals. Take note of the last clause to §107(1) (on p. 125).
Implied-in-fact K versus implied-in-law K. We will discuss this in the context of the next case.
Judge Posner and transaction costs.
His examples: doctor; violinist
Probably also works with the roofer hypo.
Does it work with my CPR hypo?
Florida District Court of Appeal, en banc
695 So. 2d 383 (1997)
World Properties (general contractor)
Equity Contracting (subcontractor)
What is a mechanics’ lien?
Case is remanded. What must Equity establish in order to prevail on their
quasi contract claim?
tomorrow: read pp. 146-59; Problem 2-2(158-59); recap