Brief Fact Summary. Peerless Packing Co., (Appellant), brought suit against Malone & Hyde, Inc. (Appellee), alleging unjust enrichment. Appellant appeals a directed verdict in Appellee’s favor.
Synopsis of Rule of Law. Equitable claims of unjust enrichment are generally disallowed in cases governed by Article 9 of the U.C.C.
The purpose and effectiveness of the UCC would be substantially impaired if interests created in compliance with UCC procedures could be defeated by application of the equitable doctrine of unjust enrichment.
View Full Point of LawIssue. Whether the theory of unjust enrichment is applicable in a case governed by Article 9 of the U.C.C.
Held. No. The theory of unjust enrichment is inapplicable in a case governed by Article 9 of the U.C.C.
Discussion. The purpose and effectiveness of the U.C.C. would be substantially impaired if interests created in compliance with the U.C.C. could be defeated by application of the equitable doctrine of unjust enrichment. The U.C.C. provides justice in the long run in large part through the certainty and predictability of its provisions, which should not be set aside absent truly egregious circumstances verging on actual fraud. In this case, no such circumstances have been presented.