Britton v. Turner
Citation: 6 N.H. 481 (1834)
Facts
Britton agreed to work for Turner for one year for $120 total. Britton worked for about 9.5 months and then quit without cause. He sued for the reasonable value of his services.
Issue
Can a party who has breached a contract by failing to fully perform recover for the value of partial performance already rendered?
Holding
Yes. A party who has substantially performed and then breached may recover in quantum meruit for the value of services rendered, minus any damages the defendant suffered from the breach. The plaintiff’s breach does not bar all recovery; otherwise the employer would receive a windfall by paying nothing for substantial work.
Rule
Quantum meruit recovery by breaching party: A plaintiff who has partially performed and then breached may recover in restitution (quantum meruit) for the reasonable value of services rendered to the defendant, offset by any damages the defendant sustained from the breach. Denying all recovery would unjustly enrich the non-breaching party.
Significance
- Classic case permitting restitutionary recovery by the breaching party
- Most U.S. jurisdictions follow this rule: a breaching party may recover in quantum meruit for net benefit conferred
- Contrasted with the English rule (traditionally denied all recovery to the breaching party)
- The Restatement Third of Restitution § 36 codifies this rule
- Key limit: the breaching party’s recovery is capped at the contract price (cannot recover more than the contract rate even if the reasonable value exceeds it)