On July 23, 2024, Justice Cohen of the New York County Commercial Division issued a decision in Supplybit, LLC v. Standard Power Hosting Infra Co., LLC, 2024 NY Slip Op. 32613(U), holding that an unjust enrichment claim cannot be based on damages arising from rights under a contract, explaining:
[A] party may not recover in quantum meruit or unjust enrichment where the parties have entered into a contract that governs the subject matter. Similarly, an equitable estoppel defense is legally insufficient where it is duplicative of the breach of contract affirmative defense.
Standard Power and Supplybit agree that they entered the Hosting Agreement. Contrary to Standard Power’s contention, it cannot assert an unjust enrichment defense when there is no dispute that the parties entered into a valid and enforceable contract. Standard Power’s unjust enrichment defense alleges that it provided services for Plaintiff and purchased equipment for their use as part of the Hosting Agreement and Plaintiff breached its obligations under the terms of the Hosting Agreement. Further, the damages claimed by Standard Power as a result of the unjust enrichment arise solely from the alleged breach of the Hosting Agreement. Accordingly, Standard Power’s unjust enrichment defense is deficient as a matter of law and must be dismissed.
(Internal quotations and citations omitted).