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If I may intervene
...
Allan Alexrod wrote:
does someone get to say 'this correspondence
must now cease'? and i assume we will happily give this to our moderator?
I would not quite want to say that; it is an interesting
dialogue (or dialog) and to some extent replicates one which Mr Hedley
and Prof Birks have been having since at least 1985 (see (1985) 5 Legal
Studies 56 (Hedley) and 67 (Birks) [NB Legal Studies is the SPTL's journal,
not the JLS from U of Chicago]) and which they continue to carry on (see
Hedley [1997] 3 Web JCLI, at http://webjcli.ncl.ac.uk/1997/
issue3/hedley3a.html, and Birks in Birks ed., *Classification of Obligations*
(Oxford, OUP, 1997)).
Far from trying to stop the thread (which I would only
want to do if it was starting to get repetitive), I would like to contribute
to it.
Allan said:
as to whether there is a law of restitution
classed by creative event we agree that the question is whether the classification
is useful and other members of the group still awake might choose to address
that I think the first point is very important. We must be
clear as to what we are fighting about or we may find out that there has
been no point to the disagreement. There are at least three classifications
in play. One is contextual, eg "commercial law" which has elements of
contract, property, tort, trusts, agency etc (a list which itself arguably
uses all three different classifications). The second is by response,
in which "restitution" goes with compensation, punishment, symbolic vindication
(nominal damages). (And possibly "disgorgement." If we understand "restitution"
to be about reversing a transfer of wealth (thus taking notice of both
defendant's gain and plaintiff's loss) then we must distinguish taking
away a gain without regard to whether it corresponds to a plaintiff's
loss, which we could call "disgorgement".) "Tort" does not belong in this
scheme because tort is something which generates the items on this list.
The third is by creative event. Wrongs, consent, unjust enrichment, others.
In this sense "unjust enrichment" does not include eg taking away fiduciaries'
profits; that is disgorgement for a wrong. "Tort" is a subcategory of
"wrongs."
It is also important to notice that "consent" does not
equate to "contract." When I wrote
IF (which some will contest)legal responses
can be said to arise from wrongs, consent, unjust enrichment, and other
causes, THEN while enforcing a contract is a response deriving from consent,
setting one aside is not necessarily so. Steve Hedley replied:
You seem to be assuming that "the law of contract"
is reducible purely to issues of consent, and that issues such as (say)
unjust enrichment are irrelevant to it. Yet what scholar of the law of
contract believes this ? But I actually did not use the phrase "the law of contract"
nor make any claim about the utility of that phrase or its possible content.
Obligations generated by consent include most contractual obligations
but they also include eg the obligations of an express trustee (cf Langbein
(1996) 105 Yale LJ 625).
We could use any or all of these three systems of classification
but it is perilous to mix them unconsciously. If a student was asked what
he was studying in a particular semester he might say "restitution, tort,
and commercial law." No one would bat an eyelash. But if a student was
asked what she was studying in a term and answered "imprisonment, theft,
and chattel law" then a different view might be taken. Yet the series
are parallel.
I think Steve takes the view that "the law of contract"
is a contextual category as I have used that phrase. Thus it includes
things not generated by consent. That is a perfectly defensible usage
but if others understand the phrase differently and the differences are
not brought to the fore confusion must follow. I think others do understand
it differently, and a view that "the law of contract" includes only obligations
generated by consent is also defensible.
So part of the controversy can be understood as which
of these three systems of classification is most useful. But another part
of it can be understood as taking place within a classification based
on causative event. That is the issue about whether unjust enrichment
is properly a category within that classification. Steve said
And aren't the formation and enforcement of
contracts something to do with unjust enrichment, too ? In another place ((1984) 100 LQR 697) Steve said: "The
Law of Restitution can only suffer if the words "unjust," "enrichment"
and "expense" are sometimes treated as bearing their everyday meanings
and sometimes as technical terms." Amen to that. I would suggest that
Steve is using two of those words in their everyday meanings when he suggests
that the formation and enforcement of contracts have something to do with
unjust enrichment. What I think is the emerging consensus all over the
Commonwealth (building upon the US experience), among academics and judges,
is that there is a technical sense of the phrase "unjust enrichment."
In that sense it is a source of obligations (and perhaps of proprietary
rights). It is a cause of action or a family of causes of action. On that
terminological choice (which I do not claim is anything but a choice,
albeit a very useful and increasingly popular one), then the formation
and enforcement of contracts have absolutely nothing to do with unjust
enrichment. Steve appears to take the view that the phrase "unjust enrichment"
does not deserve to have a technical meaning, as it does not reliably
identify anything. That may be a defensible view but it is I think now
a minority view.
Allan also wrote:
your note confirms my nervousness about participating
in this group upon which i have stumbled and in which i seem to be the
only american participant I can say that you are not the only American member of
the list. Whether we will hear from others is outwith my control.
Lionel
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