Plаintiffs appeal from a judgment in this forcible entry and wrongful detainer (FED) action, in which the trial court awarded plaintiffs possession of the residential real property in dispute but also awarded defendant $30,000 on his counterclaim for unjust enrichment. Plaintiffs assign error to the trial court’s ruling on the unjust enrichment сounterclaim, arguing that there was insufficient evidence in the record to support defendant’s counterclaim and no evidentiary basis for the amount of damages awarded. Defendant did not file an answering brief.
Unjust enrichment is an equitable doctrine. Speciality Risk Services v. Royal Indemnity Co.,
We summarize the relevant facts from the trial court’s findings and the record. Plaintiffs are defendant’s mother, Aurora Gutierrez (mother), and defendant’s sister, Lupe Wilson (Wilson), who had power of attorney for mother. Mother, 83 years old at the time of trial, owned two houses, one in Sweet Home, where she resided, and one in Albany, which she purchased in the 1960s with her husband for use as a rental property. Defendant began living in the Albany house around 1990 with his understanding that, in lieu of paying rent, he would pay for the utilities, insurance, and property taxes on the house, and provide financial support as needed to his parents, and that, in exchange, mother would give him the deed to the house after defendant’s father died. Plaintiffs disputed that there was any such arrangement. It is undisputed that defendant made house-related payments and оther payments to mother between 1997 and 2006, but that, as of July 2007, mother owed unpaid property taxes of $7,252. To pay the deficient property taxes, mother cosigned with defendant for a loan, using her Sweet Home house as collateral. Because mother did not have a checking aсcount, the proceeds of the loan were deposited into defendant’s checking account. Subsequently, some of the payments that defendant made to mother and on her behalf came from those loan proceeds.
Mother became concerned about her financial situation and the risk of foreclosure on her Sweet Home house, and she decided to sell the Albany property. Wilson helped mother prepare and serve a notice on defendant on June 8, 2007, terminating his tenancy on July 14, 2007. Defendant did not leave the Albany property, and plaintiffs brought this FED proceeding on July 18, 2007.
In response to the FED claim, defendant alleged three counterclaims: unjust enrichment, specific performance of an oral contract, and constructive trust. As relevant to this appeal, defendant alleged in his unjust enrichment counterclaim that his parеnts “received benefits by substantial payments
At trial, defendant argued that, even if he did not establish the existence of the oral agreement to convey the property, he had paid his parents’ bills for more than a decade in reliance on his understanding that mother had agreed to deed him the house, and it would be unjust to allоw mother to keep the benefits of those expenditures and also evict him from the house. Defendant submitted Exhibit 119, which he contended established that he had paid more than $150,000 on behalf of mother. Plaintiffs reviewed that exhibit and disputed that defendant paid many of those expenses on behalf of mother. But plaintiffs’ response to Exhibit 119 conceded that defendant had made some payments on behalf of his mother. Plaintiffs argued that defendant’s unjust enrichment counterclaim should fail because there was no enforceable agreement to deed the Albany house, and all of defendant’s payments to mother were either in exchange for the benefit of living at the Albany house or gratuitous financial support of his parents in the context of a family relationship.
After a lengthy trial, the court issued a letter opinion. On plaintiffs FED claim, the trial court determined that defendant was a tenant at sufferance, and that plaintiffs were entitled to possession of the Albany house. The court found that there was no agreement on the terms of the tenancy and no agreement to deed the house to defendant in exchange for his payments. The trial court rejected defendant’s counterclaims for specific performance and the establishment of a constructive trust, but ruled in favor of defendant on his unjust enrichment counterclaim, stating “[t]here is no question based on the testimony and evidence presented that Defendant provided money to both of his parents and that he paid certain bills and expenses for his Mother after his Father died.”
The trial court acknowledged in its letter opinion that, based on the parties’ testimony, the source and amount of defendant’s expenditures on mother’s behalf were uncertain. However, the court found, based on crеdible testimony by other witnesses, that defendant had given mother money for gambling and expenses. The court also found, based on defendant’s Exhibit 119 and plaintiffs’ responses to that exhibit, that defendant had made many payments to mother that plaintiffs did not contest, which “clearly appear not to be gifts,” but, rather, were funds that mother expected defendant to provide to her when needed. Given those findings, and taking into account all other evidence received, the court concluded that defendant had partially prevailed in his unjust enrichment counterclaim. The court awarded defеndant $30,000 on his unjust enrichment counterclaim and determined that defendant was entitled to the return of the $2,100 that he had paid into the court for rent.
On appeal, plaintiffs argue that defendant presented no evidence of the value of any alleged benefit to mother from defendant’s expenditures or from his improvements to the house, particularly in light of the benefit that defendant received from living there rent free. Plaintiffs contend, further, that defendant did not show that it would be unjust for plaintiffs to keep amounts that he did provide, because the rental value of the house exceeded dеfendant’s payments. Moreover, plaintiffs assert that, even if defendant paid more in support of his parents than the rental value of the house, there was no basis for the trial court to find that those payments were not a gift in the context of a family relationship. In plaintiffs’ view, the trial court’s findings that defendant was not credible, that his failure to pay property taxes caused a lien to be placed on the Albany house, that he used mother’s loan proceeds to pay some of her expenses, and that he did not prove that his improvements and tax payments event pаrtially offset the
“The elements of the quasi-contractual claim of unjust enrichment are (1) a benefit conferred, (2) awareness by the recipient that she has received the benefit, and (3) it would be unjust to allow the recipient to retain the benefit without requiring her to pay for it.” Cron v. Zimmer, 255 Or App 114, 130,
“A person confers a benefit upon another if [the person] gives to the other possession of or some other interest in money, land, chattels, or choses in action, pеrforms services beneficial to or at the request of the other, satisfies a debt or a duty of the other, or in any way adds to the other’s security or advantage. [The person] confers a benefit not only where [the person] adds to the property of another, but also where [the persоn] saves the other from expense or loss. The word ‘benefit,’ therefore, denotes any form of advantage.”
We begin with the sufficiency of evidence to support the facts as found by the trial court. There is evidence in the record sufficient to support the trial court’s finding that defendant conferred a benefit on mother when he gave her money, not intended as a gift, that she expected and used for gambling and expenses. The evidence also supports the trial court’s finding that mother was aware that she received the benefit — she did not contest that defendant made some рayments on her behalf. The remaining question concerns whether the trial court erred as a matter of law in determining that it would be unjust to allow mother to retain the benefit without requiring her to pay for it.
The mere fact that a benefit is conferred is not sufficient to establish unjust enrichment. Tum-A-Lum Lumber v. Patrick,
The trial court concluded that, although defendant’s payments for property taxes and improvements did not “even partially offset [the] huge benefit to him” of free residence, defendant had a reasonable expectation of payment based on credible testimony that he gаve mother money for gambling and expenses, uncontested documentation that defendant’s payments on his parents’ behalf were not intended as a gift, and evidence that mother expected defendant to provide funds to her when needed. We conclude that the record contаins evidence to support those factual findings and that those findings are legally sufficient to support the trial court’s conclusion that it would be unjust
Plaintiffs also argue that, even if the trial court correctly rulеd in defendant’s favor on the unjust enrichment counterclaim, it erred in awarding damages in the amount of $30,000, because there was no evidentiary basis for that amount, and the court did not account for the benefit to defendant of free rent. Plaintiffs assert that the trial court determined that $700 per month was а reasonable rent for the Albany house at the time of litigation. Because this case was in litigation for three years, plaintiffs contend that they were entitled to a $25,200 offset against the $30,000 unjust enrichment award.
“Restitution is based on the theory that one party should not be unjustly enriched at the expense of another.” Farmer,
Affirmed.
Notes
Defendant filed a notice of cross-appeal, but that cross-appeal was dismissed because defendant failed to file an undertaking for costs on appeal. ORS 19.300; ORAP 7.40.
As noted above, Wilson participated only by having power of attorney for mother.