23-13768
11th Cir.Aug 29, 2025Background
- Camden County entered into an option agreement with Union Carbide for property intended for a rocket-launch facility, paying $2.64 million for the exclusive right to purchase during the option period.
- Citizens opposed to the purchase passed a referendum repealing the authorizing resolutions after the agreement was made.
- The County unsuccessfully challenged the referendum’s constitutionality in Georgia’s Supreme Court.
- Post-referendum, Union Carbide refused to sell or refund the option payment.
- Camden County sued for breach of contract, breach of implied covenant of good faith, and unjust enrichment (money had and received); after removal to federal court and an adverse state supreme court ruling, only unjust enrichment claims remained.
- The district court dismissed the complaint, holding a valid contract precluded unjust enrichment and the voluntary-payment doctrine barred recovery.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Retroactivity of Referendum | Referendum voids the contract retroactively, justifying return of payments | No indication of retroactivity; contract valid when payments made | Referendum not retroactive; payments made under valid contract |
| Unjust Enrichment Claim | Can claim unjust enrichment as contract was invalidated | Valid contract existed until referendum, foreclosing unjust enrichment | Claim barred by existence of valid contract |
| Voluntary Payment Doctrine | Doctrine inapplicable, as payments should be returned in equity | Payments were voluntary, not procured by fraud or mistake | Voluntary-payment doctrine bars recovery |
| Statutory Construction | Referendum reverses contract authority, permitting retroactive effect | Laws and such enactments not retroactive unless expressly stated | No clear indication for retroactivity; no retroactive application |
Key Cases Cited
- Camden County v. Sweatt, 883 S.E.2d 827 (Ga. 2023) (upholds authority for referendum repealing county resolutions)
- Collins v. Athens Orthopedic Clinic, 849 S.E.2d 213 (Ga. Ct. App. 2020) (unjust enrichment unavailable when valid contract exists)
- Fernandez v. WebSingularity, Inc., 681 S.E.2d 717 (Ga. Ct. App. 2009) (same – no unjust enrichment with valid contract)