You may have heard the phrase that if it is not written down, it never happened. With contracts, it is always best to memorialize the terms in writing. A written contract ensures both parties understand their responsibilities and what is being exchanged. It reduces misunderstandings and disputes.
However, goods and services are often still exchanged without a written contract. And what do you do if the other party does not fulfill their end of the bargain? You may have a quantum meruit claim. Massingill’s Texas contract lawyers can help you understand what is quantum meruit in contract law and the remedies available.
What Is Quantum Meruit in Contract Law?
In Texas, quantum meruit is an equitable remedy that allows a plaintiff to pursue and recover payment for services provided to a defendant without an express contract. In Latin, quantum meruit means “as much as one has deserved.” The theory states that when one party provides a benefit to another, they have a reasonable expectation of receiving compensation.
When There Is No Contract
Quantum meruit claims are quasi-contract or implied contract claims. Quantum meruit is a principle of equity that allows a party to bring a claim where they would not otherwise have a remedy or cause of action. It provides relief in the absence of an enforceable contract.
The theory can apply to commercial transactions where there is no contract, price terms are absent or unclear, or the terms cannot be agreed on. It may also apply as an alternative if the contract has questionable validity or a party partially performed.
How to Prove a Quantum Meruit Claim
When a situation occurs in a transaction where one party’s conduct would unjustly enrich the other, the aggrieved party may have a claim. To prove a quantum meruit claim, a plaintiff must demonstrate:
- The plaintiff provided the defendant with a valuable service or materials;
- The defendant accepted the service or materials; and
- The defendant had reasonable notice of the plaintiff’s expectation of payment for the service or materials.
If a plaintiff proves these elements, they may recover damages to compensate them for the service or materials provided.
Other factors that a court may consider when deciding whether to award quantum meruit damages to a plaintiff include:
- Nature of the benefit,
- Risk to the plaintiff (claimant),
- Unconscionable behavior by the defendant, and
- Existing contractual right to payment.
The court retains broad discretion in awarding damages under a quantum meruit claim.
How Are Damages Determined in a Quantum Meruit Claim?
Damages awarded in a quantum meruit claim are based on the value of services. Most courts look to the reasonable market value of the services provided to assess the value.
To determine reasonable market value, courts consider factors like industry standards, customary rates, the time and effort used, the quality of the work performed, costs incurred by the service provider, and the skill level and expertise required.
The plaintiff must provide evidence of the services and their reasonable market rate. Courts may look to prevailing market rates for similar services in the industry to determine a benchmark for a reasonable value of services.
The goal of the damages is to compensate the party that provided the services for what they would have received under a fair contract in similar circumstances.
Common Quantum Meruit Claim Situations
A few everyday situations where quantum meruit contract law claims arise include:
- Contractor services—when a contractor performs work for a homeowner without a written contract, and the homeowner refuses to pay for the work done;
- Medical provider services—a medical provider provides a patient with voluntary treatment, but the patient refuses to pay for the services afterward; and
- Plumbing services—a plumber fixes a leaky pipe and does not have a prior contract or agreement with the property owner for how much the service would cost; the plumber is still entitled to payment for their services.
There are only a few examples of where a service provider can recover compensation for services performed. If you think you have a quantum meruit claim, consult with an attorney to determine the strength of your case.
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Do I Need an Attorney?
While hiring an attorney is not required, working with one can be helpful in pursuing a claim for quantum meruit in Texas. An attorney can first help you understand whether you have a valid quantum meruit claim or if you should pursue another avenue, such as breach of contract. If you do have a viable claim for quantum meruit, the attorney can help you:
- Understand legal nuances—these claims are often complicated and require a thorough understanding of contract law and legal case law to succeed;
- Gather evidence—an attorney can advise you what documents, communications, and invoices you need to gather to help prove your claim and demonstrate the value of the services or materials provided;
- Negotiate a settlement—lawyers can effectively communicate with opposing counsel to come to settlement terms and avoid litigation, or they can use alternative dispute resolution methods to resolve the issue out of court; and
- Succeed in court—if the matter goes to litigation, an attorney can advocate zealously on your behalf to get a just result.
Claims of quantum meruit are highly nuanced and complex legal matters. Working with an experienced contract attorney can ease your stress and enhance your likelihood of success.
Massingill Is Your Trusted Texas Contract Lawyers
You will enter transactions with other vendors, customers, and partners as a small business owner. Having written contracts can protect you and your business interests.
Let Massingill serve as your trusted Texas contract attorney. Our experienced attorneys can draft, review, and negotiate business contracts to protect your interests. We can also help you navigate complex contract disputes arising from not having a contract or transactions outside your original contract.
Our team has helped thousands of clients manage challenging Texas contract issues since 2015. We pride ourselves on making complicated legal issues simple for you. As a small firm, we offer dedicated and individualized service to each client’s unique needs. Contact us today to learn how we can help you navigate your business contract matters.
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Joshua Massingill
Joshua Massingill is an attorney practicing in Austin, Texas. He serves on the Texas State Bar’s Law Practice Management Committee, the Leander Educational Excellence Foundation (LEEF) Board of Directors, and the Success-Werx Board of Advisors. He mentors young entrepreneurs in Leander ISD’s INCubatorEDU program and is active in his church.
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