Paschall's, Inc. v. Dozier

407 S.W.2d 150 · Tennessee Supreme Court · 1966

Facts

Complainant furnished materials and labor for a bathroom addition to the defendants' house at the request of their daughter and grandson, who resided with the defendants. Credit was extended to the daughter, who subsequently declared bankruptcy, leaving the debt unpaid. The complainant sought a mechanic's lien and personal judgment against the defendants, but conceded the loss of the lien.

Issue

Does a materialman's amended bill state a good cause of action for unjust enrichment against landowners, entitling them to a hearing on the merits, even after losing the right to a mechanic's lien and lacking direct contractual privity with the landowners?

Holding

Yes, the court held that the complainant's amended bill states a good cause of action on the theory of unjust enrichment, and reversed the trial court's dismissal, remanding the case for a hearing on the merits.

Rule

Where a materialman furnishes labor or materials that benefit the property of a person with whom there is no privity of contract, an action on quantum meruit (quasi-contract/unjust enrichment) may lie against the landowner to recover the reasonable value, provided there is a benefit conferred, appreciation of the benefit, and inequitable retention without payment, and remedies against the contracting party have been exhausted.

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Case brief last reviewed 2026-03-19. Prepared by CaseReader from the published opinion.