Framework of Claim
A core example (whatever the theoretical analysis) is a mistaken payment. Imagine I purchase a book off you for £10, but I mistakenly give you a £20 note. If you took the money knowing that it was £10 too much, then you will be liable for the £10 in conversion (since money passes in currency only when paid 'fairly and honestly upon a valuable and bona fide consideration'). But what if that's not the case? Unjust enrichment, and the duty to reverse unjust enrichment, operates regardless of awareness. You are strictly liable to reverse it.
However, unlike in conversion, there is always a "change of position" defence available. If you (unaware that you now have £10 too much in your wallet) go and consume £10 worth of chocolate, which you would not have done had you not had that extra £10, your position has changed. If I were to demand my £10 back, you could legitimately say, "but then I would be worse off, and that is unfair". This is the change of position defence.
- Kelly v Solari (1841) 9 M&W 54
- Lipkin Gorman v Karpnale Ltd
- Sinclair v Brougham AC 398
- Fibrosa Spolka Akcyjna v Fairbairn Lawson Combe Barbour Ltd AC 32, 61-4
- Pavey & Matthews Pty Ltd v Paul HCA 5, (1987) 162 CLR 221
- Westdeutsche Landesbank Girozentrale v Islington LBC AC 669, 688 and 710-711
- Banque Financière de la Cité v Parc (Battersea) Ltd AC 221, 227
- Gibb v Maidstone and Tunbridge Wells NHS Trust EWCA Civ 678, IRLR 786
- Test Claimants in the FII Group Litigation v HMRC UKSC 19, Bus LR 1033
Read more about this topic: English Unjust Enrichment Law
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