Legal Definitions - restitution

Restitution is a legal remedy that aims to restore a person or entity to a position they were in before suffering a loss or harm, or to compel a wrongdoer to give back something they unjustly gained. It serves to prevent unjust enrichment and to compensate victims for financial loss or injury.

Restitution can apply in various legal contexts, including both civil and criminal cases:

• Criminal Case - Financial Fraud:

  Scenario: A person is convicted of defrauding elderly individuals by selling them fake investment opportunities, causing them to lose significant savings.

  Restitution: As part of the criminal sentence, the court orders the convicted individual to pay restitution to each victim, covering the full amount of money they lost due to the fraudulent scheme. This payment is intended to compensate the victims for their financial harm.

  Explanation: This example demonstrates restitution in a criminal context, where the offender is legally compelled to compensate the victims for the financial losses directly caused by their criminal actions, aiming to make the victims whole.

• Civil Case - Unjust Enrichment:

  Scenario: A utility company mistakenly bills a customer for two months of service when the customer only received one month of service. The customer unknowingly pays the incorrect, higher amount.

  Restitution: The customer could sue the utility company for restitution to recover the overpayment. A court would likely order the utility company to return the excess funds, as they were unjustly enriched by receiving payment for services they did not provide.

  Explanation: Here, restitution is applied in a civil dispute to prevent unjust enrichment. It requires the party who received an unearned benefit (the utility company) to return it to the rightful owner (the customer), focusing on the gain of the defendant rather than solely the loss of the plaintiff.

• Civil Case - Breach of Contract/Property Damage:

  Scenario: A landscaping company is hired to install a new garden, but due to negligence, they accidentally damage the homeowner's existing sprinkler system and a valuable mature tree during the process.

  Restitution: The homeowner could seek restitution from the landscaping company to cover the costs of repairing the sprinkler system and replacing the damaged tree, thereby restoring their property to its condition before the damage occurred.

  Explanation: This illustrates restitution as a means to compensate for damage and restore property to its original state or value. The landscaping company is required to make the homeowner whole for the harm caused to their property.