The doctrine of unjust enrichment applies the principles of restitution to disputes that are not governed by a contract between the parties. It characterizes the result of a failure to make restitution under circumstances that give rise to an implied or quasi-contractual obligation to return those benefits.
The courts describe this claim in general principles. For example, courts have stated that a claim for unjust enrichment seeks to restore money where equity and good conscience require restitution; it is not premised on wrongdoing, but seeks to determine to which party, in equity, justice, and law, the money belongs; and it seeks to prevent unconscionable loss to the payor and unjust enrichment to the payee.
Because recovery based on unjust enrichment of another party relies on the court's sense of fairness or equity rather than the law, it is often referred to as the equitable doctrine of unjust enrichment.
In North Carolina, the doctrine of unjust enrichment is recognized and applied by courts when one party has been unjustly enriched at the expense of another, and there is no valid contract governing the transaction between them. This doctrine is based on principles of equity and restitution, aiming to prevent one party from retaining benefits unfairly. To establish a claim for unjust enrichment in North Carolina, a plaintiff must demonstrate that they conferred a benefit upon the defendant, the defendant consciously accepted and appreciated the benefit, and the retention of the benefit without payment would be inequitable and unjust. The remedy for unjust enrichment typically involves the imposition of a constructive trust or an order for restitution, requiring the enriched party to compensate the party who suffered a loss. This remedy is not based on the existence of wrongdoing but is instead focused on the equitable principle that no one should be allowed to profit at another's expense without making restitution. North Carolina courts will consider the circumstances of each case to determine whether, in equity and good conscience, restitution is warranted.