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Unjust enrichment claim fails where purchaser paid premium and lacked knowledge of prior entitlement.
The plaintiffs sought damages for breach of contract and unjust enrichment arising from development credits issued by a municipality after road construction on land previously owned by the plaintiffs.
The land was sold multiple times, and the ultimate purchaser obtained a building permit and received the development credits.
The court applied the Supreme Court of Canada’s three‑part test for unjust enrichment and found that although the defendant received a benefit and the plaintiffs suffered a corresponding deprivation, recovery should be denied.
The court concluded that the reasonable expectations of the parties defeated the claim because the defendant paid a premium for the land reflecting the credits and had no knowledge that the credits were intended for the plaintiffs.
