Section 5.1.1.2.3 Quantum Meruit

• Library: Construction Law Practice Manual 3rd Edition 2016

§ 5.1.1.2.3 Quantum Meruit

A common law remedy known as “quantum meruit” is available in Arizona, under appropriate equitable circumstances. This theory is discussed at length in Chapter 4.6 on Unjust Enrichment Claims. 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.³⁴

It should be noted that Arizona does not follow the majority rule that refuses to allow quantum meruit actions under any circumstances against...