Case Citation
Legal Case Name

FARESE v. McGARRY Case Brief

Superior Court of New Jersey, Appellate Division1989
237 N.J. Super. 385 568 A.2d 89 Contracts Property Remedies

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Case Brief Summary & Legal Analysis

General Brief
4 min read

tl;dr: A tenant mistakenly believed he had an option to buy his rental house and made improvements. The court allowed him to recover the value of his labor under a quasi-contract theory of unjust enrichment, even though a written lease existed.

Legal Significance: A claim for unjust enrichment (quasi-contract) is not barred by the existence of an express contract if the express contract does not specifically govern the subject matter of the dispute, thereby preventing an inconsistent remedy.

FARESE v. McGARRY Law School Study Guide

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Case Facts & Court Holding

Key Facts & Case Background

Defendant McGarry leased a house from plaintiff Farese under a written lease drafted by Farese’s attorney. The lease contained a right of first refusal, but McGarry, a non-lawyer, reasonably but mistakenly believed he possessed an absolute option to purchase the property. The lease also referenced a prior, separate agreement concerning improvements the tenant was to make. Relying on his mistaken belief in the purchase option, and with the landlord’s knowledge, McGarry made significant improvements to the property. When the lease term ended, Farese refused to sell the house to McGarry. McGarry counterclaimed for breach of the alleged option and, alternatively, for the value of the improvements under a theory of unjust enrichment. The jury found no breach of an express contract but awarded McGarry $13,000 for the value of the improvements. Farese appealed, arguing that the existence of the express lease agreement precluded any recovery in quasi-contract.

Court Holding & Legal Precedent

Issue: May a party recover in quasi-contract for the value of benefits conferred upon another under a mistaken belief of a contractual right, when an express contract exists between the parties but does not govern the specific performance at issue?

Yes. The tenant was entitled to recover for the value of his Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mo

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Legal Issue

May a party recover in quasi-contract for the value of benefits conferred upon another under a mistaken belief of a contractual right, when an express contract exists between the parties but does not govern the specific performance at issue?

Conclusion

This case establishes that a quasi-contractual claim for unjust enrichment may proceed Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in repr

Legal Rule

Where an express contract does not fully address the performance for which Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur.

Legal Analysis

The court held that submitting the case to the jury on an Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum. Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum. Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum. Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut la

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Flash Summary

  • A tenant who improves property under a reasonable but mistaken belief
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proiden

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