Paschall's, Inc. v. Dozier
407 S.W.2d 150 · Tennessee Supreme Court · 1966
Facts
Paschall's, Inc. furnished materials and labor for a bathroom addition to the Doziers' house, requested by their daughter and grandson who resided there. Credit was extended to the daughter, who later declared bankruptcy. Paschall's sued the Doziers for a mechanic's lien and personal judgment, but the trial court dismissed the claim after the Doziers demurred, arguing no contract and lost lien rights.
Issue
Does a materialman's amended bill state a good cause of action for unjust enrichment against a landowner, even without privity of contract or a valid mechanic's lien, when the materials benefited the landowner's property?
Holding
Yes, the court held that the complainant's amended bill states a good cause of action against the defendants on the theory of unjust enrichment. The trial court's dismissal was reversed, and the case was remanded for a hearing on the merits.
Rule
An action on quantum meruit (quasi-contract) may lie against a landowner for the reasonable value of labor and materials furnished by a materialman or subcontractor, even without privity of contract, if the landowner received a benefit, appreciated it, and it would be inequitable to retain it without payment, provided remedies against the contracting party are exhausted.
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