Wednesday, December 25, 2013

Flooring Systems, Inc. v. Radisson Group, Inc. case brief

Flooring Systems, Inc. v. Radisson Group, Inc. case brief summary
772 P.2d 578 (1989)

CASE SYNOPSIS
Appellant subcontractor sought review of a decision from the Superior Court of Maricopa County (Arizona), which entered summary judgment in favor of appellee hotel.

CASE FACTS
In its petition for review, the subcontractor argued that the court of appeals erred by rejecting the subcontractor's unjust enrichment claim. The subcontractor contended that it was entitled to recover on its unjust enrichment claim because it had sold and installed $ 59,000 worth of carpet, and the hotel had paid no one for at least $ 25,000 of it.

DISCUSSION

  • On appeal, the court found that the hotel and its agent were not entitled as a matter of law to prevail on the subcontractor's unjust enrichment claim. 
  • The court held that the subcontractor clearly did not intend to provide carpeting work gratuitously or officiously. 
  • The court held that the hotel's agent invited the subcontractor to bid on the job and accepted the bid. 
  • The court held that the hotel obviously knew that the subcontractor had not been paid and on that basis the hotel withheld final payment from the general contractor. 
  • The court held that under these circumstances, to permit the hotel and its agent to retain the full benefit of the subcontractor's work at the subcontractor's expense may have been unjust. 
  • The court therefore held that summary judgment in favor of the hotel and its agent on this issue was improper.
CONCLUSION
The court reversed that part of the trial court's decision, which granted summary judgment in favor of the hotel on the subcontractor's unjust enrichment claim. The court held that the possibility of an unjust enrichment may have occurred by permitting the hotel and its agent to retain the full benefit of the subcontractor's work at the subcontractor's expense.

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