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Unjust Enrichment

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[Caption] Now comes Defendant, Wells Fargo Bank, N.A. ("Wells Fargo"), and moves this Court for judgment on the pleadings, pursuant to Civil Rule 12(C). In light of this Court's January 22, 2009 Decision and Entry Granting Defendant Wells Fargo N.A.'s Partial Motion to Dismiss, the only remaining claim asserted against Wells Fargo by Plaintiff, Apex Restoration, LLC ("Apex"), is its second claim, alleging unjust enrichment. However, construing all material allegations in the Complaint as true, Wells Fargo is entitled to judgment against Apex as a matter of law because Apex did not confer the benefit by which Apex claims Wells Fargo was unjustly enriched. The grounds for this motion are more fully set forth in the attached Memorandum.
[Respectfully submitted,]
MEMORANDUM
I. STATEMENT OF THE CASE On May 30, 2008, Apex filed its Complaint in this case. The Complaint alleges three claims for relief--conversion, unjust enrichment, and breach of contract. Of these claims for relief, only the first and second--conversion and unjust enrichment--are pled against Wells Fargo. On January 22, 2009, this Court entered its Decision and Entry Granting Defendant Wells Fargo N.A.'s Partial Motion to Dismiss, thereby disposing of Apex's conversion claim for relief against Wells Fargo. Therefore, the only remaining claim for relief against Wells Fargo is for unjust enrichment.
II. STATEMENT OF FACTS The following facts are taken exclusively from Apex's Complaint. They are presented here solely because, in this Motion for Judgment on the Pleadings, Apex is entitled to have all material allegations in the Complaint construed in its favor as true, and the presentation of these facts herein does not represent their adoption by Wells Fargo. Myrtle Atherley-Flowers ("Flowers") owned the real property located in the Township of Fairfield, County of Butler, State of Ohio, and commonly known as 3574 Lakewood Court, Hamilton, Ohio 45011 (the "Property"). Complaint, at ¶¶4, 5. On April 18, 2007, Apex and Flowers entered into a contract for valuable services to be performed at the Property. Id., at ¶11. Apex and Flowers entered into a contract authorizing Flowers' insurance company to make direct payment to Apex for its services. Id., at ¶12. By August 7, 2007, Apex had completed the valuable services it performed at the Property. Id., at ¶13. Unknown to Apex, its services were provided at the time Wells Fargo was foreclosing on the mortgage it held covering the Property. Id., at ¶14. A check in the amount of $29,907.48 was issued by the Nationwide Insurance Companies to pay for Apex's services. Id., at ¶15. Wells Fargo applied the $29,907.48 payment issued by the Nationwide Insurance Companies to Flowers' outstanding debt. Id., at ¶16.
III. LAW AND ARGUMENT A. Applicable Standard

The Supreme Court of Ohio has held, "[i]n applying the Civ.R. 12(C) standard, judgment on the pleadings may be granted where no material factual issue exists and the moving party is entitled to judgment as a matter of law." State ex rel. Pirman v. Money (1994), 69 Ohio St.3d 591, 592-593, 635 N.E.2d 26 (citations omitted). The Court went on to state, "[t]he determination is restricted solely to the allegations of the pleadings and the nonmoving party is entitled to have all material allegations in the complaint, with all reasonable inferences to be drawn therefrom, construed in her favor as true." Id. at 593. B. Apex's unjust enrichment claim fails as a matter of law because Nationwide--not Apex--submitted the payment to Wells Fargo.

In order to recover under the theory of unjust enrichment, Apex must demonstrate "(1) a benefit conferred by a plaintiff upon a defendant; (2) knowledge by the defendant of the benefit; and (3) retention of the benefit by the defendant under circumstances where it would be unjust to do so without payment." Nelis v. Ethridge (Oct. 23, 2000), Warren App. No. CA2000-02-017, unreported (citing Hambleton v. R.G. Barry Corp. (1984), 12 Ohio St. 3d 179, 183 465 N.E.2d 1298.). In its Complaint, Apex states, "Defendants, in failing to return the $29,907.48 payment issued by the Nationwide Insurance Companies, have been unjustly enriched in the sum of $29,907.48." Complaint, ¶23. Therefore, Apex's theory of unjust enrichment is that Wells Fargo was unjustly enriched by the retention of the $29,907.48 paid by Nationwide. However, because Nationwide--not Apex--submitted the payment to Wells Fargo, Apex's unjust enrichment claim fails as a matter of law. In deciding a case analogous to the case at bar, the Twelfth District Court of Appeals has explained unjust enrichment as follows: "Unjust enrichment of a person occurs when he has and retains money or benefits which in justice and equity belongs to another." Recovery under the doctrine of unjust enrichment requires a trial court to impose a quasi-contractual relationship upon the parties. Quasi-contracts are not true contracts, but are merely a legal fiction, an "equitable legal vehicle for obtaining a just result *** [which] does not depend upon the intentions of the parties, as one may become an obligor without ever consenting to the creation of an obligation." Quasi-contracts are used to prevent injustice and provide a remedy where none is otherwise available.

The elements of a quasi-contract are: (1) a benefit conferred by a plaintiff upon a defendant; (2) knowledge by the defendant of the benefit; and (3) retention of the benefit by the defendant under circumstances where it would be unjust to do so without payment. "The purpose of the quasi-contract action is not to compensate the plaintiff for any loss or damage suffered by him but to compensate him for the benefit he has conferred on the defendant."

In re Estate of York (June 18, 2001), Warren App. No. CA2000-04-040, unreported, discretionary appeal not allowed (2001), 93 Ohio St.3d 1463, 756 N.E.2d 1238 (citations omitted, emphases added). In York, the decedent purported to leave the entirety of a piece of real property to his niece--the appellant--and the decedent left the remainder of his estate to other beneficiaries. However, it was discovered that the decedent only owned one-sixth of the real property and, therefore, only the one-sixth interest of the decedent passed to the appellant. Thereafter, the estate pursued a malpractice claim against the decedent's prior attorney for failure to secure title to the entirety of the real property in the name of the decedent. The attorney's malpractice insurance carrier settled with the estate for $116,667. Thereafter, the appellant pursued an unjust enrichment claim against the beneficiaries of the estate, claiming that they were unjustly enriched by the $116,667 settlement payment, arguing that the settlement payment should go to her to compensate her for the five-sixths interest in the real property that was intended to be conveyed to her but that she did not receive. Id. The trial court found that the doctrine of unjust enrichment did not apply to those facts. On review, the Twelfth District affirmed, stating, Upon reviewing the record before us, we agree with the probate court that the doctrine of unjust enrichment does not apply to the case at bar. As stated, recovery under the doctrine of unjust enrichment requires the imposition of a quasi-contract which in turn requires, inter alia, that a benefit be conferred to a defendant by a plaintiff. While [the beneficiaries] stand to receive the settlement proceeds, it cannot be said that such benefit was conferred to them by appellant. The record is devoid of any evidence that appellant did anything to convey the settlement proceeds upon [the beneficiaries]. As a result, as no claim of unjust enrichment was made out, the trial court properly held that [the beneficiaries], and not appellant, are to be awarded the settlement proceeds as part of the estate's residue.

Id. (emphases sic.). The case at bar is directly analogous to York. In York, the appellant's claim for unjust enrichment failed because the appellant did not confer the benefit. In the instant case, Apex did not confer the pled benefit on Wells Fargo. As Apex pleads, "A check in the amount of $29,907.48 was issued by the Nationwide Insurance Companies *** to pay for Apex Restoration's services," and, therefore, "in failing to return the $29,907.48 payment issued by the Nationwide Insurance Companies, [Wells Fargo has] been unjustly enriched in the sum of $29,907.48." Complaint, ¶¶15, 23 (emphases added). However, a claim for unjust enrichment "requires, inter alia, that a benefit be conferred to a defendant by a plaintiff." York, supra (emphases sic.). Therefore, because Nationwide--not Apex--submitted the payment to Wells Fargo, Apex's unjust enrichment claim fails as a matter of law. Construing all material allegations in the Complaint as true, and drawing all reasonable inferences in favor of Apex, Apex simply does not have a claim for relief against Wells Fargo. Apex had a contract with Flowers and Apex performed work on property owned by Flowers. Nowhere does Apex allege that it had a contractual or quasi-contractual relationship with Wells Fargo, and nowhere does Apex allege that Apex conferred a benefit on Wells Fargo. Therefore, Apex's unjust enrichment claim fails as a matter of law and Wells Fargo should be dismissed from this case with prejudice.
IV. CONCLUSION For the foregoing reasons, Apex's second claim for relief, based upon the theory of unjust enrichment, fails as a matter of law as pled against Wells Fargo. Therefore, Wells Fargo requests the Court grant judgment in its favor on Apex's second claim for relief. Furthermore, because this Court dismissed Apex's only other claim for relief implicating Wells Fargo on January 22, 2009, Wells Fargo requests that the Court dismiss Wells Fargo from this case with prejudice.
[Respectfully Submitted,]

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