Unjust enrichment is currently one of the most pressing problems. Litigation is initiated by both ordinary citizens and various organizations. There are more and more such situations every year, and ordinary people suffer from this. What is important to know about unjust enrichment? What rights and obligations arise from this concept?
The concept of unjust enrichment
Let's start by defining the concept. So, unjustified enrichment is called property objects that were acquired at the expense of other persons through legally unjustified transactions. In judicial disputes, parties to this type of legal relationship are usually called the acquirer and the victim. Claims are considered by arbitration courts.
Conditions for unjust enrichment
For a court to recognize unjust enrichment, three conditions must be simultaneously met:
- The presence of the fact of enrichment itself (according to Article 8 of the Civil Law), that is, when the acquirer receives benefits and increases property, but at the same time does not bear the costs that could have occurred in the ordinary course of business.
- The acquisition is not the result of an economic activity.
- The enrichment does not have a legal basis, that is, the transaction was not accompanied by a contract or is not based on current legislative norms.
Usually improper enrichment is the result of situations when:
- by mistake, a certain sum of money was paid to the acquirer or transfer of things, provision of services, performance of work, release from property obligations;
- the acquirer committed unlawful acts in regarding property objects;
- natural disasters occurred;
- erroneous actions of a third party took place.
However, sometimes there are disputes regarding the definition of the term “property”. Civil law states that property refers to movable and immovable property as well as money, other securities, things, in other words, all items that can be transferred to individuals and legal entities.
When do civil rights and obligations arise?
The acquisition by the acquirer of the ownership of property without legal grounds is unjust enrichment. What causes civil rights and obligations? Civil law gives an unambiguous answer to this question - they arise in the following circumstances:
- conclusion of transactions, contracts;
- approval of acts by state and local government bodies;
- the court's decision;
- acquisition of property in accordance with the law;
- the creation of a work of music or art, as well as any result of intellectual activity;
- accidental or intentional harm to citizens;
- the onset of events giving rise to a relationship;
- illicit enrichment at the expense of other citizens.
Collection mechanism
If a fact of unjust enrichment is revealed, the acquirer, in accordance with Article 1102 of the Civil Code of the Russian Federation, must return the property to the victim. If, as a result of unjust enrichment, the acquirer received income, he must reimburse this amount to the victim (Article 1107). The return period is considered from the moment when the acquirer found out that there are no legal grounds for enrichment.The same rule applies in cases where the acquirer planned to receive income from the property.
What may an acquirer require?
If unjust enrichment takes place, the Civil Code of the Russian Federation gives the acquirer the right to reimburse costs for property items that are subject to return. This is stated in article 1108 of this Code. Costs are reimbursed by the victims. The amount of compensation is determined by the cost of maintaining and storing the property from the moment when unjust enrichment was recognized. However, this right may be lost if the property was held intentionally by the acquirer.
Ways to return property
The return of property objects that were received as a result of unjust enrichment is the direct and primary obligation of the acquirer. The return of property objects in kind and the reimbursement of their value and the losses incurred by the victims are the ways by which unjust enrichment can be recovered (Civil Code, Articles 1104 and 1105). Interest is accrued on the amount of enrichment in accordance with Article 395 of the Civil Law.
What is not refundable
Property can not always be returned to the victim due to unjust enrichment of the acquirer. Civil law in article 1109 establishes cases in which return is not possible. These include situations when:
- the property was transferred by the acquirer to the victim before the obligation to reimburse them, including accrued interest (for example, salaries are paid to the organization’s employees until certain services are provided);
- property in another transaction was transferred to third parties if the limitation period has already expired, regardless of whether the victim knew about the beginning of this period or not;
- the property is salary or other payments, such as alimony, pension, since they are recognized as means of subsistence, if the acquirer proves that he did not have any accounting errors or dishonesty;
- objects of property are transferred for charitable purposes or for the performance of non-existent obligations, the acquirer must prove that the victim knew about these conditions.
The above list of exceptional situations is recognized by the legislation as unambiguous and exhaustive.
Unjustified transfer of claims
Situations when the acquirer transmitted by assignment of claims or in other similar ways, property to third parties, is regarded as unjust enrichment, according to article 1106 of the Civil Law. In this case, the victim must receive back tenure property. Also, the acquirer must return all documents that certify ownership.
Unjust Enrichment: Judicial Practice
Most often, two types of disputes are considered in court:
- When citizens accidentally transfer funds to organizations and persons with whom an agreement has not been concluded (error in one digit of the current account).
- When citizens file a claim for a refund, when they are credited to the account of third parties and organizations also without prior conclusion of the contract.
In the first case, when the acquirer refuses to pay the received funds, the court asks him for all checks and receipts. If in the coming days no other funds were transferred to the account of the acquirer, the entire amount is refunded to the victim. In the second case, the court will most likely refuse to refund the victim, since he knew in advance that he had no obligations to the organization, but did so at his own discretion. The court does not recognize unjust enrichment.
Judicial practice in such claims shows that these legislative norms can be interpreted in different ways.Each case requires a thorough approach and good knowledge of civil law.
Practical recommendations
When performing a certain type of work or rendering services without concluding a contract, the court may refuse to satisfy the requirement to charge a fee from the customer. However, referring to article 1102, the victim can prove the fact of unjust enrichment. By the way, lenders are entitled to charge a commission for imposed services from the bank. The loan agreement remains valid, and the clause on additional commissions is recognized illegal.
In our life, situations often arise when unjust enrichment takes place. The Civil Code unequivocally and fully defines the rights and obligations of the parties to such transactions in Articles 1102-1109 in Chapter No. 60. In order to protect yourself from litigation regarding the recovery of lost property, it is important to exercise caution and vigilance in the performance of cash transactions and keep all documents, confirming them. If this situation occurs, consultation with a qualified lawyer will not be superfluous.
