The respondents successfully sued the appellants in Small Claims Court for a portion of legal fees incurred in a British Columbia action regarding a condominium complex they all owned units in.
The trial judge found no contract but awarded damages based on unjust enrichment, which the Divisional Court upheld.
On appeal, the Court of Appeal held that while the Small Claims Court has jurisdiction to grant equitable relief (such as unjust enrichment) when the remedy is a monetary payment within its limits, the trial judge erred in finding unjust enrichment on the facts.
The appellants were not incontrovertibly benefited by the legal services, nor did the respondents suffer a deprivation.
The appeal was allowed and the action dismissed.