When There is a Dispute Over the Existence of a Contract, a Plaintiff May Plead Both Contract and Quasi-Contract Claims

On April 4, 2024, the First Department issued a decision in Georgetown Co., LLC v. IAC/Interactive Corp., 2024 NY Slip Op. 01870, holding that when there is a dispute over the existence of a contract, a plaintiff may please both contract and quasi-contract claims, explaining:

The court also correctly decided that plaintiffs can proceed, in the alternative, on an unjust enrichment theory. Here, plaintiffs maintain that its efforts to amend the New York City Zoning Resolution (ZR) increased the permitted FAR rights applicable to defendants’ lots. Defendants do not deny plaintiffs’ rezoning efforts and instead contend that the parties’ 2004 agreement does not apply to this transaction. Therefore, there is a bona fide dispute as to the application of a contract in the dispute in issue, and plaintiffs may proceed upon a theory of quasi contract as well as breach of contract, and will not be required to elect its remedies.

(Internal quotations and citations omitted).

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