5.3.1.2.3 Quantum Meruit

• Jurisdiction: Arizona

A common law remedy known as “quantum meruit” is available in Arizona, under appropriate equitable circumstances. It will allow a contractor to recover, in essence, for the value of the labor and materials provided to an owner under “unjust enrichment” principles related to concepts of “natural justice and equity.”^[30] (allowing contractor to recover under quantum meruit principles for the “market value of labor and materials, the reasonable cost of its work, and a reasonable profit margin as the reasonable value of the services”). It would seem that the Murdock-Bryant opinion overrules the questionable dicta in Ruck Corp. v. Woudenberg,^[31] that indirect costs such as general overhead expenses should not be includable in a quantum meruit award.

Quantum meruit claims have been recognized under a variety of circumstances and are not tied to any particular set of facts. For example, in Arizona a contractor is permitted to recover for work performed on a construction project beyond the scope of the original contract based upon a quantum meruit or reasonable value of services theory.^[32]

Contractors may consider using this theory as a basis for recovery of damages where the contract is unenforceable, but not illegal (i.e., a mistake or the statute of frauds making contract void as opposed to a lack of license making contract unenforceable due to illegality).^[33] Quantum meruit is also available where the owner’s breach prevents a contractor from completing work, or under circumstances where there is no specific or enforceable contract, but a benefit or advantage is conferred on the owner in the absence of a contract.^[3...