Opinion ID: 2100113
Heading Depth: 1
Heading Rank: 2

Heading: Unjust Enrichment and Promissory Estoppel

Text: In Counts II and III of its complaint June Roberts seeks recovery of the 5% fee on equitable theories of unjust enrichment and promissory estoppel. [1] The court granted a summary judgment because [t]he procedure of charging referral fees is not one that [it] could ever sanction. . . . June Roberts argues that the court incorrectly interpreted its actions in seeking a referral fee as inappropriate and granted a summary judgment based on its distaste for such a fee. The court's judgment is based on an acceptance of Venture's version of the facts of this case; namely, that June Roberts attempted to deceive the Larreas by hiding the referral fee from them. The court's position, however, ignores the procedural posture of this case. June Roberts should not at this stage be estopped from pursuing its equitable remedies if it has raised a genuine issue of material fact regarding proof of its claims. In the light most favorable to June Roberts, a genuine issue is raised whether it was attempting to hide the fee or instead whether it wanted to resolve the fee dispute before disclosing it to the Larreas. [2] To establish a claim for unjust enrichment June Roberts must prove that (1) it conferred a benefit on Venture, (2) Venture had appreciation or knowledge of the benefit, and (3) Venture's acceptance or retention of the benefit was under such circumstances as to make it inequitable for it to retain the benefit without payment of its value. ERA-Northern Assoc. v. Border Trust Co., 662 A.2d 243, 245 (Me.1995). Recovery pursuant to a claim for unjust enrichment is limited to the amount of the benefit realized and retained by the defendant. Bowden v. Grindle, 651 A.2d 347, 351 (Me.1994). The damages analysis is based on principles of equity, not contract. Aladdin Elec. Assoc. v. Town of Old Orchard Beach, 645 A.2d 1142, 1145 (Me.1994). In ERA-Northern Assoc. we held that a real estate broker could recover a commission on a claim of unjust enrichment when the plaintiff broker established that its efforts resulted in a benefit to the defendant seller, appreciated by the seller, under circumstances that would have made it inequitable for the seller to not pay. ERA-Northern Assoc., 662 A.2d at 245-46. In the instant case June Roberts has at least raised a genuine issue of material fact where evidence in the record establishes that it was in first contact with the Larreas, Venture had previously paid a fee for similar referrals, and the Larreas signed a $435,000 construction contract with Venture shortly after the referral. Promissory estoppel is an accepted doctrine in Maine. Chapman v. Bomann, 381 A.2d 1123, 1127 (Me.1978). Restatement (Second) of Contracts § 90 provides: A promise which the promisor should reasonably expect to induce action or forbearance on the part of the promisee or a third person and which does induce such action or forbearance is binding if injustice can be avoided only by enforcement of the promise. The remedy granted for breach may be limited as justice requires. The promise relied on by the promisee need not be express but may be implied from a party's conduct. Martin v. Scott Paper Co., 511 A.2d 1048, 1050 (Me.1986). Promissory estoppel could be viewed as a recovery of last resort in this case. June Roberts, however, does allege the existence of a contract, and, alternatively, a promise from Venture to pay the referral fee. The existence of a promise could be derived from the conduct of the parties in the two previous transactions in which Venture agreed to pay a referral fee to June Roberts. Whether June Roberts relied on the supposed promise to pay a fee of 5% is a factual question. A genuine issue as to the existence of its reliance is at least raised by a letter from June Roberts's president to Rocheleau in March 1993, in which he alludes to the fact that June Roberts could easily have steered the Larreas to another builder who would have paid the fee.