Unjust Enrichment Claims in Kentucky: When There’s No Contract
Not every dispute involves a written contract. Sometimes someone benefits at your expense without any formal agreement in place — and Kentucky law recognizes that’s not fair. An unjust enrichment claim allows you to recover the value of a benefit you conferred on someone else when it would be inequitable for them to keep it without paying you.
What Is Unjust Enrichment?
Unjust enrichment is an equitable claim — sometimes called a “quasi-contract” or “implied-in-law contract” — that exists independent of any actual agreement. Under Kentucky law, the elements are straightforward: the defendant received a benefit from the plaintiff, the defendant appreciated or knew of the benefit, and it would be inequitable for the defendant to retain the benefit without payment.
The classic example: you hire a contractor to build a fence, they build it on your neighbor’s property by mistake, and the neighbor refuses to pay. There’s no contract between you and the neighbor, but they’ve received a valuable improvement at your expense. Unjust enrichment fills that gap.
When Does Unjust Enrichment Come Up?
In practice, I see unjust enrichment claims in situations where a contract existed but is unenforceable for some reason (such as the Statute of Frauds), where someone performed services or provided materials expecting to be paid but no formal agreement was reached, where a contract was partially performed before falling apart, in family situations where one person made significant financial contributions expecting to share in property that was titled solely in someone else’s name, and in business partnerships that were never formally documented.
An Important Limitation
Kentucky courts generally hold that you can’t pursue an unjust enrichment claim when an express contract governs the same subject matter. If there’s a valid, enforceable contract between the parties, the contract controls — you’d bring a breach of contract claim, not an unjust enrichment claim. Unjust enrichment is a gap-filler, not an alternative to contract enforcement.
However, it’s common to plead unjust enrichment as an alternative theory — in case the court finds that no enforceable contract exists.
What Can You Recover?
In an unjust enrichment case, the measure of damages is typically the value of the benefit conferred — not the plaintiff’s costs or lost profits. The court is trying to restore the defendant to their pre-benefit position, not necessarily to make the plaintiff whole. This distinction matters and can affect how much you recover.
If you’ve provided value to someone and haven’t been compensated, I can help evaluate whether you have a claim. Call me at (859) 225-9540 or use the contact form.
Joseph D. Buckles is a civil litigation attorney at Buckles Law Office, PLLC in Lexington, Kentucky.
