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WHERE THERE IS A WRITTEN CONTRACT, AN ACTION FOR UNJUST ENRICHMENT WILL NOT LIE AGAINST THIRD-PARTY NONSIGNATORIES (FIRST DEPT).

The First Department, reversing Supreme Court, determined that the existence of a contract precludes an action for unjust enrichment brought against a third-party nonsignatory:

Plaintiff’s cause of action for unjust enrichment is barred by the written agreement between plaintiff and defendant condominium sponsor, despite the fact that appellants are nonsignatories to that agreement … . The case law is clear that even where a defendant is a third-party nonsignatory to a contract, there can be no cause of action sounding in quasi-contract where, as here, there is a valid contract in place and the contract covers the subject matter of the dispute … . Board of Mgrs. of the 15 Union Sq. W. Condominium v Azogui, 2023 NY Slip Op 04920, First Dept 10-3-23

Practice Point: The existence of a written contract precludes an action for unjust enrichment against third-party nonsignatories.

 

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