07/16/2024
In this era of international trade and differing markets, how is one to measure money damages when a buyer is unjustly enriched at the expense of a seller? A recent Eleventh Circuit Court of Appeals decision recently tackled that issue, although the case was extremely fact dependent which means a different outcome might occur under differing circumstances. At issue, a Chinese exporter sold goods to an American importer; for which the American importer did not pay. There was no question that the importer did not pay, although a written contract was found not to exist. Thus, the sole issue for trial was how much had the importer been unjustly enriched?
Under Florida law, the measure of damages available under a theory of unjust enrichment is the value of the benefit conferred, not the amount the exporter hoped to receive or the cost to the exporter. In this case the goods were produced in China, where they had a value of about five million dollars. The goods were sold to an exporter in America, where the goods had a value of seventy-five million dollars. Thus, a seventy-million-dollar difference existed depending upon whether the valuation of the goods was determined in China or the U.S. The Court ruled that the benefit was conferred in the U.S., where the importer received the goods, invoices and customs documents listed the U.S. valuation, and the importer was unable to provide any substantial evidence that the value of the goods in the Chinese market was the more appropriate marketplace to conduct the valuation.