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Commercial Division Clarifies Application of "Sufficiently Close Relationship" Requirement for Pleading Unjust Enrichment Claims | Patterson Belknap Webb & Tyler LLP


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Unjust enrichment offers an avenue for recovery in situations where no actual agreement exists between parties to a dispute. But this theory of quasi-contract does not apply to just any type of commercial arrangement. 
In New York, although a written agreement may not be required to state a claim for unjust enrichment, there still must exist “a relationship or connection between the parties that is not too attenuated.”[1]  In other words, an unjust enrichment claim cannot withstand a motion to dismiss unless the plaintiff alleges a “sufficiently close relationship with the other party.”[2]  The absence of allegations indicating such a relationship between the parties, “or at least an awareness by the defendant of the plaintiff’s existence,” can be fatal.[3] ....

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