James sues Betty. How much, if any, may James recover in restitution from Betty?
James contracts to make repairs to Betty’s building in return for Betty’s promise to pay $12,000 upon completion of the repairs. After partially completing the repairs, James is unable to continue. Betty refuses to pay James and hires another builder, who completes the repairs for $5,000. The building’s value to Betty has increased by $10,000 as a result of the repairs by James, but Betty has lost $500 in rents because of the delay caused by James’s breach. James sues Betty. How much, if any, may James recover in restitution from Betty?
Section 36 of the Restatement of Restitution provides the privilege to the defaulted party to get recovery of all the benefits that are earned by their efforts until the contract terms are breached by the party.
In this case,Individual B is liable to pay $4,500 to Individual J because $10,000 was an increment in the value of the building by the special performance of Individual J. Individual B is going to subtract the damages of $5000, borne by them, in recruiting another builder and damages of $500, which is the loss in the rental value.
Individual J is going to be eligible to recover benefits by Virtue of Restitution, which has been gained from the special performance in the building after subtracting the damages borne by Individual B.