OPINION
This case involves the doctrine of unjust enrichment. As explained more fully herein, we hold that one who provides services under a contract with a political subdivision may not recover for the value of those services under quantum meruit if the contract was entered into in violation of a state law requiring approval of a majority of property owners in the area affected.
I. FACTS
Blue Ridge Sewer Improvement District (Blue Ridge) is a political subdivision of the State of Arizona formed pursuant to A.R.S. §§ 11-701 to -771.45. 1 The District is divided into a number of assessment areas. The dispute in this case concerns Assessment Area 5B.
Blue Ridge proposed to construct sewage facilities within Area 5B. The process for doing so required that Blue Ridge hire an engineer before proceeding. A.R.S. § 11-712. In March, 1980, Blue Ridge entered into a contract with Lowry and Associates (Lowry) for “general engineering services” in connection with the formation of the
Lowry proceeded with its design services called for under the contract and ultimately billed Blue Ridge $119,000 for such services. It was not until several years later, however, that the parties realized that an insufficient number of property owners had signed the petitions.
Blue Ridge brought a declaratory judgment action to determine whether it was liable to Lowry for the engineering design services. Lowry counterclaimed for breach of contract, and asked that it be awarded $119,000 under the doctrine of quantum meruit. Blue Ridge moved to dismiss the counterclaim; the trial court treated the motion as a motion for summary judgment.
The trial court found for Blue Ridge holding that the petition to form the assessment district had an insufficient number of signatures to satisfy statutory requirements. The court found that Lowry was partially at fault and that it had failed to confer a benefit on Blue Ridge. Finally, the court declared that the strictness of the applicable statute negated the application of quantum meruit. For the reasons stated herein, we affirm the judgment of the trial court.
II. BACKGROUND
Quantum meruit
is a restitutionary remedy which is based upon the doctrine of unjust enrichment.
See generally,
D. Dobbs,
Remedies
§§ 4.1-4.2 (1973) (Dobbs). It is one theory, among several, falling within the realm of implied-in-law and quasi-contracts. Dobbs at § 4.2. “Contracts implied-in-law or quasi-contracts ... are inferred by the law as a matter of reason and justice from the acts and conduct of the parties and circumstances surrounding the transactions and are imposed for the purpose of bringing about justice without reference to the intention of the parties.”
John A. Artukovich & Sons, Inc. v. Reliance Truck Co.,
Most jurisdictions refuse to allow a
quantum meruit
action against political bodies where the contract is unenforceable under state law.
Scofield Eng. Co. v. City of Danville,
In
Greenlee County v. Webster,
III. APPLICATION OF QUANTUM ME-RUIT IN THIS CASE
Despite the general availability of the doctrine of
quantum meruit
in actions of this kind in Arizona, we conclude that in the present case it should not be allowed. Central to the doctrine is the notion of unjust enrichment.
Murdock-Bryant Const., Inc. v. Pearson,
In this case, the contract between the parties failed because an insufficient number of property owners signed petitions authorizing the planned sewer improvements. 2 Such improvements cannot be carried out unless certain statutory prerequisites are met. One requirement pertains to the approval by owners of a majority of property fronting the proposed improvement.
A. Before incurring any expenses for which the district may become liable the board of directors shall require that there be filed with the clerk a petition signed by property owners as provided by this section.
C. The petition may be accepted as sufficient by the board of directors if it or the several parts thereof have attached thereto the affidavit of a property owner whose property is subject to assessment for the improvement, stating on his oath that he has examined the petition and that the signatures thereto are the genuine signatures of the owners of a majority of the frontage property, fronting on the proposed improve- ment____
A.R.S. § 11-714 (emphasis added). It is undisputed that the petitions failed to contain the signatures of the owners of a majority of the property fronting on the improvement. Because Lowry bestowed services upon property owners who, pursuant to statutory requirements, implicitly chose not to receive such services, any benefit or enrichment given by Lowry cannot be considered unjust. Furthermore, as between Lowry and the landowners, Lowry assumed the contractual duty to determine whether the owners of a majority of the property approved the proposed improvement.
The court recognizes that this contract was not formed with the property
In a recent decision, the Arizona Court of Appeals, Division Two, found
quantum meruit
unavailable to a party who. had contracted with a municipal corporation.
Maucher v. City of Eloy,
Once it is decided that, on the facts of the particular case and in the light of the particular statute, the statutory policy would be undermined by even a restitu-tionary recovery, it is clear that the policy against unjust enrichment must bow to the policy established by the legislature.
Id.
at 338,
Judgment affirmed.
Notes
. In 1985, the legislature renumbered the improvement district statutes and codified them in Title 48. Laws 1985, ch. 190, § 7. A.R.S. §§ 48-901 to -1017. References to the improvement district statutes will be made to the statutes as numbered during the pendency of this action.
. The record fails to disclose whether Lowry’s plans were subsequently used by Blue Ridge. If an improvement project is approved in accordance with A.R.S. § 11-714 and if Lowry’s plans are utilized, nothing in this opinion would pre-elude Lowry from filing an action in quantum meruit. If the property owners elect to build an improvement and choose to retain any benefit conferred by Lowry, restitution may be available. Dobbs at 302-303.
