Implied promise to pay for services rendered
California
Quantum meruit refers to the well-established principle that “the law implies a promise to pay for services performed under circumstances disclosing that they were not gratuitously rendered.” (Long v. Rumsey (1938) 12 Cal.2d 334, 342, 84 P.2d 146.) To recover in quantum meruit, a party need not prove the existence of a contract (Maglica v. Maglica (1998) 66 Cal.App.4th 442, 449, 78 Cal.Rptr.2d 101; Mayborne v. Citizens’ Trust & Savings Bank (1920) 46 Cal.App. 178, 182, 188 P. 1034), but it must show the circumstances were such that “the services were rendered under some understanding or expectation of both parties that compensation therefor was to be made” (Estate of Mumford (1916) 173 Cal. 511, 523, 160 P. 667; see Long v. Rumsey, supra, 12 Cal.2d at p. 342, 84 P.2d 146; Crane v. Derrick (1910) 157 Cal. 667, 672, 109 P. 31; see generally 1 Witkin, Summary of Cal. Law (9th ed. 1987) Contracts, § 113, p. 138).
Colorado
Quantum meruit is a theory of contract recovery that invokes an implied contract when the parties either have no express contract or have abrogated it. Application of the doctrine of quantum meruit, also termed quasi-contract or unjust enrichment, does not depend upon the existence of a contract, either express or implied in fact. Rather, it arises out of the need to avoid unjust enrichment to a party even in the absence of an actual agreement to pay for the services rendered. See Dove Valley Bus. Park Assocs., Ltd. v. County Comm’rs of Arapahoe County, 945 P.2d 395, 403 (Colo.1997); Cablevision of Breckenridge v. Tannhauser Condominium Ass’n, 649 P.2d 1093, 1097 (Colo.1982).
Quantum meruit literally means “as much as [is] deserved.” Black’s Law Dictionary 445*445 1255 (7th ed.1999). Accordingly, the equitable doctrine seeks to restore fairness when a contract fails. See Dove Valley, 945 P.2d at 403; see also DCB Constr. Co. v. Central City Dev. Co., 965 P.2d 115, 119 (Colo.1998) (stating that quantum meruit recovery springs “from the law of natural immutable justice and equity”); Ninth Dist. Prod. Credit Ass’n v. Ed Duggan, Inc., 821 P.2d 788, 795 (Colo.1991) (finding “the concept of unjust enrichment centers attention `on the prevention of injustice'”). Quantum meruit strikes the appropriate balance by gauging the equities and ensuring that the party receiving the benefit of the bargain pays a reasonable sum for that benefit. See Black’s Law Dictionary 1255.
To recover in quantum meruit, a plaintiff must demonstrate that: (1) at plaintiff’s expense; (2) defendant received a benefit; (3) under circumstances that would make it unjust for defendant to retain the benefit without paying. See DCB Constr. Co., 965 P.2d at 119. A benefit denotes any form of advantage. See Dove Valley, 945 P.2d at 403. Whether injustice results often will turn on whether a party engaged in some type of wrongdoing. See DCB Constr. Co., 965 P.2d at 122 (holding that a construction company could not recover in quantum meruit from landlord for construction services performed for tenant when there was no evidence that the landlord improperly created the impression that it would pay for the work). As a result, courts proceeding on a quantum meruit theory must engage in a highly fact-intensive inquiry.
Under some circumstances, a party to an unenforceable express contract may recover under quantum meruit. See A.T.E., Inc. v. Nelson W. Constructors, Inc., 757 P.2d 151, 153 (Colo.App.1988); Backus v. Apishapa Land & Cattle Co., 44 Colo.App. 59, 62, 615 P.2d 42, 44 (1980). However, courts will refuse quantum meruit recovery when expressly contrary to the provisions of the written contract between the parties. See Stanford v. Ronald H. Mayer Real Estate, Inc., 849 P.2d 921, 923 (Colo.App.1993). Hence, in general, a quantum meruit claim may exist independently of a contract and need not turn on whether the contract between the parties met specified requirements.