Costello and Another v MacDonald and Others: CA 29 Jul 2011

The provision of services to a company was held not to enrich its directors and shareholders.
In unjust enrichment, a claim for restitution will fail if it undermines the contractual arrangements between the parties. Etherton LJ said: ‘The general rule should be to uphold contractual arrangements by which parties have defined and allocated and, to that extent, restricted their mutual obligations, and, in so doing, have similarly allocated and circumscribed the consequences of non-performance. That general rule reflects a sound legal policy which acknowledges the parties’ autonomy to configure the legal relations between them and provides certainty, and so limits disputes and litigation. The following cases support its application to the present case.’

Judges:

Pill, Etherton, Patten LJJ

Citations:

[2011] EWCA Civ 930, [2011] CILL 3081, [2012] 1 All ER (Comm) 357, [2011] BLR 544, [2011] 47 EG 106, [2012] QB 244, 137 Con LR 55, [2011] 3 EGLR 87, [2011] 3 WLR 1341

Links:

Bailii

Jurisdiction:

England and Wales

Construction, Company

Updated: 26 July 2022; Ref: scu.442526