Opinion ID: 163642
Heading Depth: 6
Heading Rank: 1

Heading: “Arising out of a tort, breach of contract, or

Text: violation of law” On the first point, Appellees appear to argue as follows: (1) the claims here sound in restitution, since the sole purpose is to refund, to the extent possible, the victims’ original investments; and (2) a cause of action for restitution does not arise “out of a tort, breach of contract, or violation of law.” We are not persuaded. We agree that the victims have a cause of action for restitution (often called “unjust enrichment”). But even if liability for unjust enrichment does not come within the language of the QSF regulations, an issue we need not address, the fact that the victims have such claims is unimportant because a claim for unjust enrichment can coexist with a claim sounding in tort, contract, or violation of law. See, e.g., -21- Restatement (Third) of Restitution and Unjust Enrichment § 13 cmt. a (Tentative Draft No. 1, 2001) (“In the case of a contractual transfer . . . , the consequences of fraudulent inducement may be simultaneously a part of contract law and of the law of restitution.”). Here, the fraudulent transactions give rise not only to claims for unjust enrichment, but also to common-law claims in fraud and contract, as well as claims for securities fraud. And for each of these claims a potential remedy is refunding the amount of the original investment. See Dan B. Dobbs, Law of Remedies § 9.1 (2d ed. 1993) (fraud); id. § 12.1(1) (contract); id. § 9.2(1) (securities fraud). Thus, the victims’ “claims . . . result from . . . event[s] . . . that ha[ve] given rise to . . . claim[s] asserting liability . . . [a]rising out of a tort, breach of contract, or violation of law.” Treas. Reg. § 1.468B-1(c)(2).