Commercial Division Blog

Current Developments in the Commercial Divisions of the
New York State Courts by Schlam Stone & Dolan LLP
Posted: July 24, 2015

Claim for Unjust Enrichment Lies Against Party Who Received Property Stolen From Plaintiff

On July 2, 2015, the First Department issued a decision in Lau v. Lazar, 2015 NY Slip Op. 05770, holding that a claim for unjust enrichment lies against a person who received property had been stolen from the plaintiff.

In Lau, the plaintiff brought unjust enrichment claims against several of the defendants. The First Department held that the claim had been “adequately pleaded because where one party misappropriates property from another and uses that property to pay a debt to a third party, an action for unjust enrichment may lie against the party who ultimately received the money.” (Internal quotations and citations omitted).

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