Restitutionary damages CASES
In English law, restitutionary damages are monetary awards designed to prevent unjust enrichment by recovering benefits unfairly retained by a party at another’s expense.
Definition and Principles
Restitutionary damages differ from compensatory damages, focusing on reversing unjust enrichment rather than merely compensating losses. They’re awarded when a party unfairly profits from a wrongful act or breach.
Common Examples
- Recovery of profits gained through breaches of fiduciary duties.
- Unjust enrichment scenarios involving wrongful use of property or services.
- Contracts void due to mistake or duress where benefits unjustly retained.
Legal Implications
- Awarded irrespective of claimant’s actual financial loss.
- Calculated based on the defendant’s gain rather than claimant’s harm.
Practical Importance
Understanding restitutionary damages ensures fair remedies, deterring unjust enrichment and ensuring accountability in contractual and fiduciary relationships.
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Surrey County Council and Mole Valley District Council sold land to Bredero Homes subject to covenants requiring development in accordance with planning permission for 72 houses. Bredero obtained new permission and built 77 houses, making additional profit. The councils sought damages for breach of covenant but, having suffered no financial...