Also known as:restitutions · restitutionary remedy
Written by attorneys · grounded in primary & secondary sources — see below
A remedy that restores to one party the benefit conferred on another or compensates for harm sustained by requiring return of value received or payment of the gain obtained.
Sources & Authorities
How it applies
Common Examples
6
Tort Victim Receives Restitution Component
Renata Russo suffered property damage when a delivery truck owned by Rising Sun Electronics veered off the road. The court awarded compensatory damages that included a restitution component measured by the value of the harm sustained. Rising Sun Electronics was ordered to pay the amount necessary to restore Russo to her pre-tort position.
Mutual Mistake Triggers Restitution Analysis
Rina Rahman and Radiance Media entered a licensing deal based on a shared assumption about the scope of existing rights. When the assumption proved false, the court considered whether restitution of payments already made would affect the materiality of the mistake. The availability of restitution relief helped determine that rescission was appropriate.
Select any source to read its text and confirm it supports the definition.
Cases
Statutes
Federal Rules
Uniform Acts
Model Codes
Restatements
Casebooks
Hornbooks
Servitude Breach Yields Restitution Remedy
Rhea Reynolds granted an easement across her land to Rocky Mountain Mining for equipment staging. When the company stored hazardous waste instead, the court permitted restitution as one of several available remedies. Reynolds recovered the value of the unauthorized benefit the company obtained from the land.
Unenforceable Power Contract Allows Restitution
Ravi Reddy promised to exercise a future power of appointment in exchange for value from Reliance Insurance. Because the contract was unenforceable, Reddy could not be forced to perform. Reliance Insurance recovered in restitution the value it had transferred in reliance on the promise.
Restitution Agreement Does Not Bar Reporting
Rowan Russell learned from a client that another lawyer had misappropriated funds and entered a private restitution agreement with the client. The court held that the agreement and the client's desire for confidentiality did not relieve Russell of the duty to report the misconduct. The existence of restitution did not override professional reporting obligations.
Restitution Interest Measured by Value Received
Ryan Roberts performed design work for a project that Reliance Insurance later abandoned. Because the contract was unenforceable, Roberts sought recovery measured by the reasonable value of services to the company. The court calculated restitution either by the cost to obtain equivalent services or by the increase in the company's property value.
Common questions
Frequently Asked
5
How is the amount of restitution measured when a party seeks to protect a restitution interest in contract?+
A sum awarded to protect a restitution interest may be measured by the reasonable value to the other party of what was received or by the extent to which the other party's property has been increased in value.
Supporting sources
Does a private restitution agreement between a client and a lawyer who committed misconduct excuse the reporting lawyer from the duty to report?+
No. The client's desire to keep the misconduct quiet and the existence of a private restitution agreement do not override the reporting duty under rules like Model Rule 8.3 when the information is not itself confidential.
Supporting sources
When may restitution be awarded as a remedy to enforce a servitude?+
A servitude may be enforced by any appropriate remedy or combination of remedies, which may include restitution along with declaratory judgment, compensatory damages, injunctions, and imposition of liens.
Supporting sources
What relief is available when a contract to exercise a non-presently exercisable power of appointment is unenforceable?+
Although the promisee cannot obtain damages or the specific property, the promisee is entitled to restitution of the value given in exchange for the promise.
Supporting sources
How does restitution function within compensatory damages in tort?+
Compensatory damages are awarded as compensation, indemnity, or restitution for harm sustained by the plaintiff.
Supporting sources
377 U.S. 426 (1964)Business Associations
…Securities Act of 1933, the Court found the words entirely sufficient to fashion a remedy to rescind a fraudulent sale, secure restitution and even to enforce the right to restitution against a third party holding assets of the vendor. Deckert v. Independence Shares Corp. , 311 U. S. 282 (1940). This significant language was…