Quantum Meruit Claims | What Are They?
Quantum meruit means ‘as much as one deserves’ and an action for quantum meruit seeks the value of services delivered but not paid for.
A claim seeking quantum meruit may arise where, for example, there is no contract between the parties in which the price has been agreed or where there is a contract for a price but further work has been carried out which is not covered by the contract.
A quantum meruit claim is classified as one seeking the recovery of a debt with the consequence that it is subject to a limitation period of six years during which recovery action must be commenced, whereafter it will be statute barred.
Stuart Southall at KANGS gives a brief outline of quantum meruit claims.
The Pursuit of a Claim
Where the parties cannot agree the amount to be paid for the completed work, the court may be asked to determine such amount.
It may be the case, of course, that the agreed service was only partially supplied, was negligently or incorrectly supplied where the value of the service completed will be far more difficult to establish.
A claim for quantum meruit may arise following circumstance where one party undertook work in anticipation of the formalisation of a contract which never materialised with the result that a Court will have to consider:
- where the risk lies,
- which party was responsible for the failure to finalise the contract,
- whether the services would usually have been provided free of charge,
- any terms on which the request for services was made,
- whether any assurances were given not to withdraw from the contract negotiations or to cover the interim period leading to its finalisation.
Unjust Enrichment
Generally, a Court has to consider whether there resulted any unjust enrichment which, in the case of Benedetti v Sawiris, a four-pronged test was identified, namely:
- has the defendant been enriched?
- was the enrichment at the claimant’s expense?
- was the enrichment unjust?
- are there any defences available to the defendant?
It is unusual, when unjust enrichment is found, for a court to award payment of less than 50% of the value of the goods or services.
The general assumption is that contracts, whether written or orally agreed, contain an implied term that the renumeration for delivery of the services will be reasonable in ‘all the circumstances’.
How Can We Help?
Where services have been provided but have not been paid for and the value of the work conducted is disputed, a claim through the courts seeking payment on a Quantum Meruit basis may be the appropriate manner in which to proceed.
As with all contractual disputes, each claim depends upon its own circumstances which require careful consideration as to the best manner in which to resolve such dispute, whether through a civil court or by means of another possible dispute resolution platform.
The Team at KANGS advises clients, both individual and corporate, upon contractual and other forms of civil dispute would be delighted to assist you.
Who Can I Contact for Advice & Help?
If we can be of assistance, our Team is available via:
Telephone: 0333 370 4333
Email: info@kangssolicitors.co.uk
We provide initial no obligation discussion at our three offices in London, Birmingham and Manchester.
Alternatively, discussions can be held virtually through live conferencing or telephone.
