Commerce Partnership 8098 Limited Partnership v. Equity Contracting Co.
695 So. 2d 383 (1997)
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Rule of Law:
To recover from a property owner under a quasi-contract theory of unjust enrichment, a subcontractor must prove that it exhausted its remedies against the general contractor and that the owner has not paid any party for the benefit the subcontractor conferred. The subcontractor's failure to perfect a mechanic's lien does not preclude this cause of action.
Facts:
- Commerce Partnership 8098 Limited Partnership ('Commerce') owned an office building and hired a general contractor, World Properties, Inc., to perform improvements.
- World Properties subcontracted with Equity Contracting Company, Inc. ('Equity') to perform stucco and surfacing work for $17,100.
- Commerce was aware of Equity's work, inspecting it on a weekly basis.
- Equity fully performed its work under the subcontract with World Properties.
- World Properties failed to pay Equity for the completed work.
- Commerce's representative refused Equity's direct request for at least partial payment.
- The general contractor, World Properties, subsequently declared bankruptcy.
Procedural Posture:
- Equity Contracting Company, Inc. sued Commerce Partnership 8098 Limited Partnership in a Florida trial court on a single count of 'Quantum Meruit.'
- During a non-jury trial, the trial court denied Commerce's motion for an involuntary dismissal made at the close of Equity's case.
- The trial court entered a final judgment in favor of Equity for $17,100.
- Commerce, as appellant, appealed the judgment to the District Court of Appeal of Florida, Fourth District.
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Issue:
Does a subcontractor establish a valid quasi-contract claim against a property owner for unjust enrichment without proving that the owner failed to pay any party for the benefit conferred by the subcontractor's work?
Opinions:
Majority - Judge Gross
No. A subcontractor does not establish a valid quasi-contract claim against a property owner without proving the owner was unjustly enriched, which requires showing the owner has not paid any person for the improvements furnished by the subcontractor. The court clarified the distinction between a contract implied in fact, which requires assent, and a contract implied in law (quasi-contract), which is a legal fiction created to prevent unjust enrichment. Citing its precedent in Maloney v. Therm Alum Industries, Corp., the court affirmed that for a subcontractor to recover from an owner, it must prove two elements: (1) it has exhausted all remedies against the general contractor and remains unpaid, and (2) the owner has not given consideration to any person for the improvements. The court explicitly receded from any suggestion in Maloney that failure to perfect a mechanic's lien would bar such a claim, holding that Florida's lien statute provides a cumulative, not exclusive, remedy. Here, Equity failed to prove the second element, as it offered no evidence regarding Commerce's payments for the project, and the trial court erroneously excluded Commerce's evidence of payments made to the general contractor and other subcontractors. An owner is not unjustly enriched, and is not required to pay twice, if it has already paid the general contractor the full contract price for the work performed.
Analysis:
This case clarifies the specific requirements for a subcontractor's unjust enrichment claim against a property owner in Florida, establishing a clear two-part test. It significantly affirms that the statutory mechanic's lien is not the exclusive remedy for an unpaid subcontractor, allowing for a quasi-contract action as a cumulative remedy. The decision places a crucial evidentiary burden on the subcontractor to prove not only that it was not paid, but also that the owner received a 'windfall' by not paying anyone for the work. This protects owners from double payment while providing a specific, though difficult, path for subcontractors to recover when a general contractor defaults.
