Callano v. Oakwood Park Homes Corp.
Superior Court of New Jersey, 1966.
Author: Jim

Facts: One Mr. Pendergast made a contract with the defendants to buy a lot and a house.  Before the construction of the house was complete, Mr. Pendergast made a contract with the plaintiffs where the plaintiffs planted shrubbery in the lot for $475. Mr. Pendergast did not make the payment to the plaintiffs before he died.  After his death, Pendergast’s contract with the defendants for the sale of the house was also terminated.  Later the defendants sold to house with the shrubbery still planted to another buyer.

Procedure:  The District Court ruled in favor of the plaintiffs in the amount of $475.

Issue: Is the defendant liable to pay the plaintiffs for the amount of the shrubbery based on the theory of quasi-contractual liability?

Holding: No

Quasi-Contract test (2 prongs): Plaintiff must prove: 1. Defendant was enriched and 2. The refusal of the payment is unjust.

Rationale: Under quasi-contractual liability, the plaintiff must have expected the payment form the defendant.  But in the current case, the plaintiffs did not expect the defendants to pay when they planted the shrubbery.  Their dealings was with Mr. Pendergast and the defendants were in no way involved in such dealings. Therefore, the plaintiffs should bring suit against the estate of Mr. Pendergast and not the defendant in this case.  Reversed.