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Keywords

contractattorneystatutetrialadoptionunjust enrichmentrestitution
contractattorneytrialadoptionunjust enrichmentrestitution

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Friends of Children, Inc. v. Marcus, 46 Ark. App. 57, 876 S.W.2d 603

Facts

In the fall of 1990, Randall and Diane Marcus contacted American Friends of Children, Inc. to adopt a child. They were eventually placed with a child born on May 23, 1991, but soon noticed concerning health issues. After returning the child, the Marcuses filed suit against Friends of Children, Inc., seeking restitution of the $25,000 fee paid for the adoption, alleging fraud due to the agency's failure to disclose the child's medical history. The agency later collected a second fee from another adopting couple for the same child.

In the fall of 1990, Randall and Diane Marcus contacted American Friends of Children, Inc. to adopt a child.

Issue

Did the trial court err in finding that the adoption agency was unjustly enriched and in awarding attorney's fees to the prospective adoptive parents?

Did the trial court err in finding that the adoption agency was unjustly enriched and in awarding attorney's fees to the prospective adoptive parents?

Rule

Restitution may be awarded in cases of unjust enrichment even when a contract exists, particularly when the transaction has been effectively rescinded by agreement.

Restitution may be awarded in cases of unjust enrichment even when a contract exists, particularly when the transaction has been effectively rescinded by agreement.

Analysis

The court found that the agency had been unjustly enriched by receiving placement fees from two different couples for the same child. The evidence showed that the Marcuses had returned the child and that the agency subsequently placed the child again, collecting another fee. The court determined that the circumstances warranted restitution, as the agency's retention of the fees was inequitable.

The court found that the agency had been unjustly enriched by receiving placement fees from two different couples for the same child.

Conclusion

The court affirmed the trial court's award of restitution to the Marcuses but reversed the award of attorney's fees, stating that such fees are not typically awarded unless expressly provided for by statute or rule.

The court affirmed the trial court's award of restitution to the Marcuses but reversed the award of attorney's fees.

Who won?

The prospective adoptive parents, Randall and Diane Marcus, prevailed in their claim for restitution because the court found that the adoption agency had been unjustly enriched.

The prospective adoptive parents, Randall and Diane Marcus, prevailed in their claim for restitution because the court found that the adoption agency had been unjustly enriched.

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