Quantum Meruit California

What Is Quantum Meruit?

Quantum meruit means “as much as deserved” in Latin. The doctrine refers to determining how much compensation parties should receive for providing services or goods when there is no contract.

An Example of Quantum Meruit

For example, a restaurant orders 300 cases, and the soda company delivers the bottles the next day. However, neither company entered into a written agreement and agreed on a payment amount.

The doctrine of quantum meruit ensures that the soda company would still receive compensation for fulfilling the order, even without a contract between the parties.

Additionally, if the soda company’s cases are normally $15, but the restaurant only pays $5 per case, the soda company could begin a civil suit against the company for fair payment and use the doctrine of quantum meruit to prove the case.

Therefore, quantum meruit claims are typically applied when there is no viable contract between the parties making the deal or exchange. Sometimes, plaintiffs reference quantum meruit when a contract exists but are also unenforceable for some reason.

How is Quantum Meruit Calculated?

Quantum Meruit is calculated by figuring out exactly how much the defendant has benefited from the transaction or by determining how much the plaintiff has spent on services and materials.

According to California law, a plaintiff who wishes to use the doctrine of quantum meruit must prove the following:

• The defendant requested that the plaintiff perform some kind of service or deliver some goods to them. For example, if the plaintiff has a documented request or can establish that the defendant implied that they wanted the goods or services, the plaintiff can use quantum meruit.

• The plaintiff obeyed the request and delivered the goods or services.

• The plaintiff did not compensate the defendant for the goods or services.

The plaintiff also must show the court what the value of the items and/or services was, based on past sales or market figures, so that the court understands how much the defendant must pay the plaintiff.

What Are Common Examples of Quantum Meruit?

Quantum meruit claims occur in various situations, from when a doctor provides emergency aid to when a lawyer offers counsel without a contract.

Sometimes, a business completes its work early, and other times people promise to pay for an item but do not follow through or attempt to exchange goods and services for goods and services, as opposed to money.

For example, let’s say a lawyer goes to a car wash. The worker washes the lawyer’s car, and as he does, the lawyer offers some legal advice. But, the lawyer decided not to pay because he was under the impression that he was paying by offering free legal counsel. There may be no contract, but the car wash worker could still attempt to make the lawyer pay for his car wash under the quantum meruit.

When Do Parties Claim Quantum Meruit?

Parties typically make quantum meruit claims when they perform their duties or provide goods, but no contract existed to signify that both sides agreed. Sometimes, a company completes work, but neither party specifies how much the company will earn.

Other examples that often lead to claims of quantum meruit include:

• When work is completed at the request of the owner
• When the contract is void for some reason
• When there is an agreement to pay a sum, but no official contract or receipt

What is Considered Reasonable Compensation for Quantum Meruit?

When the court must decide what constitutes a legal sum, they consider the following:

• The quality of the work performed or the goods provided
• The typical commercial price or rate for the work
• Whether any form of contract, written or verbal, was agreed upon

The purpose of quantum meruit is to help the plaintiff receive compensation for the goods and services they provided. The amount of compensation the court decides is suitable is subjective, so some parties receive the full value they deserve, but others do not.

When parties do not only make a deal but sign a contract, much of this difficulty disappears. Therefore, all parties in California who begin doing business together should back up their agreement with a written, signed contract.

When Should Individuals Seek Help from an Attorney?

Nakase Wade can assist when individuals seek to make a claim using the legal doctrine of quantum meruit. In addition, our California business lawyers and corporate attorneys help California individuals and businesses receive fair compensation, even when the parties did not sign a contract.

Quantum meruit claims can grow complex, but our skilled legal team fully understands the doctrine of quantum meruit. Contact us for a free consultation, and we will help you decide how quantum meruit applies to your case specifically and help you receive payment.