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Negotiorum Gestio: A Civilian Concept in the Common Law?

Published online by Cambridge University Press:  17 January 2008

Abstract

This paper assesses whether English law recognizes a concept of negotiorum gestio. Claimants intervening in other' affairs and seeking restitution or reimbursement of expenses are often labeled ‘officious’, and disallowed relief. That, however, gives a misleading impression of English law. English law does recognize a concept of negotiorum gestio, which while very different to that found in German law, has parallels to versions found in other Civilian systems. It provides a cause of action to recover the intervenor's expenses, and any loss suffered during the intervention. It also provides a defence to the intervenor's intentional torts, although negligent intervenors will remain liable for their negligence

Type
Articles
Copyright
Copyright © British Institute of International and Comparative Law 2006

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References

1 See Arts 2292–7 Louisiana CC and Coastal Environmental Specialists v Chem-Lig 818 So (2d) 12 (2001).

2 See eg other than the jurisdictions discussed in detail Arts 6:198–6:202 Dutch Civil Code — translation [1994] RLR 202, commentary E Schrage ‘Restitution in the New Dutch Civil Code’ [1994] RLR 208.

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14 § 994II BGB.

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32 BGHZ 40, 28. For duties under foreign law see NJW 1971, 609 (extracted Beatson and Schrage (n 8) 549–52). See Dawson (n 6) 1108, Kortmann (n 3) 107. For a similar rule in Israeli law see [2002] RLR 203.

33 Standard Bank Financial Services v Taylam (1979) 2 SA 383 (C)

34 §685 BGB.

35 Larenz (n 25) 355, Kortmann (n 3) 109.

36 Palandt (n 21) 1068; Stoljar (n 3) 12, 49–51.

37 Voet's Commentarius ad Pandectas 3.5.9.

38 Dawson (n 9) 822–3.

39 They also claimed under §812 BGB for the cost of the flight out.

40 NJW 1971, 609.

41 D.3.5.44 for example.

42 See Palandt (n 21) 1068 and Jauernig (n 24) 737 where the word chosen is nützlich. Van Zyl talks of utiliter coeptum (n 19) ch 1.

43 Jauernig (n 24) 737.

44 Menalco Solis (n 9) 118. He too talks of utiliter coeptum.

45 Art 2295 Louisiana CC coastal Environmental Specialits v Chem-Lig 818 So (2d) 12 (2001). For similar rules in Scots law see Bannatine v Cunninghame (1872) 10 M 319; Erskine 3.3.52–3.

46 § 680 BGB.

47 § 683I BGB.

48 § 683II BGB.

49 This is called unberechtigte Geschäftsführung ohne Auftrag in German law. § 684 BGB; Palandt (n 21) 1070; Jauernig (n 24) 738. In South African law see Van Zyl (n 19) 87–95; Encyclopaedia of South African Law (n 24) paras 35–40; Williams Estate v Mollenschoot & Schep [1939] CPD 360; D.3.5.5. This surfaced in scots law in Bankton 1.9.2, but has not featured since.

50 Van Zyl (n 19) 105–10.

51 C.2.18.42. See also D.3.5.8.3, 17.1.40, 3.5.6.3, 12.1.23. The exceptions were the payment of funeral expenses and the repair of a road outside a rented property.

52 Larenz (n 25) 353; Müunchener Kommentar (n 25) 266.

53 Encyclopaedia of South African Law (n 21) vol 9, para 76; there is no general enrichment action in South African law. Nortije v Pool (1966) 3 SA 96 (A).

54 CL Martin ‘Louisiana State Law Institute Proposes Revision of Negotiorum Gestio and Codification of Unjust Enrichment’ (1994) 69 Tulane L Rev 181.

55 ibid 200. Art 2292 Louisiana CC.

56 Zimmermann (n 10) 444.

57 Huber's Jurisprudence 1.28.6; Martin (n 54) 198.

58 Larenz (n 25) 355; Kortmann (n 3) 110.

59 Stair's Institutes 1.8.3; this was a departure from the Roman law Leslie (n 19) 21. Walker suggests remuneration is not available in the modern law. Walker, DPrinciples of Scottish Private Law (4th ednClarendon Press Oxford 1988) 514.Google Scholar

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65 ibid 565–7.

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68 (1886) 34 Ch D 234; Foskett v McKeown [2001] 1 AC 103 (HL) 118–19.

69 ibid 248.

70 Which lies behind many other doctrines—such as that burdens cannot be imposed on third parties by contracts.

71 (1886) 34 Ch D 234, 241.

72 ibid 243, Kortmann (n 3) 113.

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77 Yourell v Hiberninan Bank [1918] AC 372; Re Leslie (1883) 23 Ch D 552; Rotherham, CProprietary Remedies in Context (Hart Publishing Oxford 2002) 315.Google Scholar

78 Dagan (n73) 130–1.

79 Van Zyl (n 19) 105–10. South Africa does not recognize the jurisdictional split between law and equity and therefore these lines are possessory. The availability of a lien is a feature of South African unjustified enrichment law.

80 [1939] ch 286.

81 ibid 321–2.

82 (1884) 15 QBD 60

83 ibid 64–5.

84 Birks, PBHAn Introduction to the law of Restitution (rev ednClarendon Press Oxford 1989) 101–3.Google ScholarPalmer, GEThe Law of Restitution (Little Brown & Co Boston 1978) vol II 359.Google Scholar

85 Nicholson v Chapman (1793) 2 H B1 254, 126 ER 536.

86 Leigh v Dickeson (1884) 15 Ch D 60; Birks, PBHNegotiorum Gestio and the Common Law’ [1971] CLP 110, 113–15. In a different context that concern can be found in the Unsolicited Good and Services Act 1971.Google Scholar

87 Zimmermann (n 10) 435–6.

88 Aitken, LNegotiorum Gestio and the Common Law’ (1988) 11 Sydney L Rev 566, 596.Google Scholar

89 Dawson, FUnjust Enrichment (Little Brown & Co Boston 1951) 139.Google Scholar

90 A Debate reged in the 19th century; Dawson (n 9) 821–2.

91 Zimmermann and du Plessis (n 16) 30. The concern is long standing. BGHZ 47, 370, 371–2; Larenz (n 25) 345.

92 Dagan (n 73) 99–101. On altruism as its own reward see 103–6, and Kortmann (n 3) 88.

93 Burrows (n 4) ch 9. For an alternative and much criticized view see Stoljar, SUnjust Enrichment and Unjust Sacrifice’ (1987) 50 MLR 603, Stoljar (n 3) 12–17.CrossRefGoogle Scholar

94 Birks (n 84) 21–2.

95 Birks (n 3) 99. See also Krebs, TA German Contribution to English Enrichment Law’ [1999] RLR 271, 278, discussing S Meier's doctoral thesis in GermanGoogle ScholarMeier, SIrrtum und Zweckfehlung; Das System der Unjust-Gründe bei rechtgrundlosen Leistungen im englischen Recht (JCB Mohr Tübingen 1999);Google ScholarMeier, S and Zimmermann, RJudicial Development of the Law Error Juris, and The Law of Unjustified Enrichment–A View from Germany’ (1999) 155 LQR 556.Google Scholar

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97 Mitchell, CThe Law of Contribution and Reimbursement (OUP Oxford 2003) para 3.28. It is sometimes called legal compulsion Burrows (n 4) ch 8;Google ScholarVirgo, GThe Principles of the Law of Restitution (OUP Oxford 1999) 223–48.Google Scholar

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99 Gebhardt v Saunders [1892] 2 QB 452. Burrows (n 4) 294. Jenkins v Tucker (1788) 1 H B1 90, 126 ER 55 would also fit into this category—legal liability to bury the deceased was taken on by another.

100 Birks (n 3) 124.

101 [1987] 1 Lloyd's Rep 151.

102 ibid 156.

103 Birks (n 3) 46.

104 Barker, KRiddles Remedies and Restitution: Quantifying Gain in Unjust Enrichment Law’ [2001] CLP 255.Google Scholar

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106 McInnes, M ‘Enrichment Revisited’ in Neyers, J (ed) Understanding Unjust enrichment (Hart Publishing Oxford 2004) 165, 169.Google Scholar

107 Virgo (n 97) 39–40.

108 Mc Innes (n 106) 180.

109 Dagan (n 73) 109.

110 ibid 186–7.

111 Virgo (n 97) 62.

112 Dawson (n 6) 1115–16

113 ibid 1116. We value life under the Fatal Accidents Act 1976, for example, but refuse to value it in other areas, such as the ‘wrongful life cases’. See McKay v Essex AHA [1982] QB 116 (CA).

114 Degeling, SRestitutionary Right to Share in Damages (CUP Cambridge 2002) 5371; Kortmann (n 3) 170.Google Scholar

115 Degeling (n 114) 109–10.

116 [1960]2 QB 430; Wilson v McLay (1961) 106 CLR 523.

117 (1960) 76 LQR 187.

118 Burrows (n 4) 314–16; Kortmann (n 3) 155.

119 Surrey Breakdown Ltd v Knight [1999] RTR 84.

120 Birks (n 84) 195–202.

121 Burrow (n 4) 315.

122 ibid 315; Dagan, HIn Defence of Good Samaritan’ (1998) 98 Michigan L Rev 1152.Google Scholar

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124 I.3.27.1.

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126 Phelps James & Co v Hill [1891] 1 QB 605.

127 The Victor (1865) 13 LT 21.

128 Birks (n 84) 104; id ‘In Defence of Free Acceptance’ in Burrows, AS (ed) Essays on the Law of Restitution (Clarendon Press Oxford 1991) 105.Google ScholarFor Criticism of free acceptance see Burrows, ASFree Acceptance and the Law of Restitution’ (1988) 104 LQR 572.Google Scholar

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131 Lorenzen (n 27) 194.

132 Kortmann (n 3) 184.

133 Hope, EWOfficiousness’ (1929) 15 Cornell LQ 25, 52.Google Scholar

134 §679 BGB.

135 Larenz (n 25) 352.

136 Palandt (n 21) 1068; §683 BGB. This is mirrored in Art 2294 Louisiana CC. For breach of this obligation in German law see BGHZ 65, 354.

137 Aitken (n 88) 566.

138 ibid 567.

139 Kortmann (n 3) 164–5.

140 See Street (n 63) 94–6.

141 For a discussion of the tort of negligence and the standard see ibid 247–54.

142 Ersk 3.3.52.

143 Birks and Mitchell (n 130) para 15.160.

144 Goff and Jones (n 129) 458–9; McInnes, MRestitution and Rescue of Life’ (1994) 37 Alberta L Rev 37, 65–6; Dawson (n 6) 1097.Google Scholar

145 Dagan (n 73) 115–17.

146 Zimmermann (n 10) 445–7.

147 Dagan (n 73) 118.

148 ibid 120.

149 Reynolds, FMB (ed) Bowstead and Reynolds The Law of Agency (17th ednSweet & Maxwell London 2001) para 4.002.Google Scholar

150 SirTreitel, GuenterThe Law of Contract (11th ednSweet & Maxwell London 2003) 722.Google Scholar

151 Reynolds, FMBAgency of Necessity’ [1990] JBL 505; Kortmann (n 3) 129–33.Google Scholar

152 See eg Great Northern Railway v Swaffield (1874) LR 9 Ex 132; Surrey Breakdown Ltd v Knight [1999] RTR 84 for a more cautious approach.

153 [1913] 1 KB 103; Munro v Willmott [1949] 1 KB 295. For the modern statutory authority for bailees to sell see Torts (Interference with Goods) Act 1977, ss 12–13.

154 Goode, RCommercial Law (3rd ednPenguin London 2004) 167; Treitel (n 150) 721.Google Scholar

155 For the defence of necessity in tort see Street on Torts (n 63) 92–5.

156 [1982] AC 939.

157 The Unique Mariner [1978] 1 Lloyd's Rep 438.

158 The Choko Star [1990] 1 Lloyd's Rep 513; Bowstead and Reynolds, however, doubt that the distinction should make such a difference (n 149) para 4.008; Guest, AG (ed) Chitty an Contracts (29th ednSweet & Maxwell London 2004) para 31.033.Google Scholar

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160 Chitty (n 158) para 31.033. Contrast the old case of Bolton v Prentice (1745) 2 Str 1214, 90 ER 1136.

161 Sealy, LS and Hooley, RCommercial Law (3rd ednButterworths London 2003) 136; McCamus (n 123) 305–6. For the civilian analogue see Dawson (n 9) 824.Google Scholar

162 Rhodes v Fielder Jones & Harrison (1919) 89 LJKB 15. Conversely reimbursement is unavailable where the party exceeds his actual authority. Barron v Fitzgerald 1840 6 Bing NC 201, 133 ER 79.

163 Brown (n 159) 419. This would parallel the Pflicht zur Hilfeleistung in German law.

164 ibid para 4.005; Goff and Jones (n 129) 450.

165 Aitken (n 88) 586.

166 ibid 586.

167 Bowstead and Reynolds (n 149) para 4.006; Chitty (n 158) para 31.036.

168 Bowstead and Reynolds (n 149) para 4.002

169 Ersk III.3.16; Art 2297 Louisiana CC.

170 Lorenzen (n 27) 198. Note however, that Roman law did not have a concept of true agency, or ‘direct representation’ Zimmermann (n 10) 421.

171 Müchener Kommentar (n 25) Band 1 § 164. The rules of ‘agency’ or Vertretungsrecht can be found in § 164ff BGB.

172 Markesinis (n 28) 72, but see Kortmann (n 3) 110. This separation also exists in South African law Encyclopaedia of South African Lae (n 21) vol 1 para 17. On the separation in Scots law see Walker (n 59) 213–15.

173 Jebara v Ottoman Bank [1927] 2 KB 254.

174 AG Ceylon v de Silva [1953] AC 461; United Bank of Kuwait v Hammond [1988] 1 WLR 1051.

175 Kortmann (n 3) 134–6

176 ibid 186.

177 Stewart (n 18) 173.

178 Walker (n 59) 218.

179 Bills of Exchange Act 1882, s 66.

180 Goff and Jones (n 129) 461.

181 Bills of Exchange Act 1882, s 68(5).

182 See Guest, AG (ed) Chalmers and Guest on Bills of Exchange, Cheques and Promissory Notes (15th ednSweet & Maxwell London 1998) paras 1718–23;Google ScholarElliott, N, Odgers, J, and Phillips, JM (eds) Byles on Bills of Exchange and Cheques (27th ednSweet & Maxwell London 2002) para 13.17; Kortmann (n 3) 134.Google Scholar

183 Chitty (n 158) para 34.145.

184 McCamus (n 123) 320.

185 (1841) 7 M&W 595, 151 ER 903.

186 Aitken (n 88) 577–80.

187 D.11.7.12.

188 Aitken (n 88) 571. It provides an exception to the general rule against recovery where the payment was against the express wishes of principal, as did repairs to the outside a rented house D.43.10.3.

189 Marasinghe, MLThe Place of Negotiorum Gestio in English Law’ (1976) 8 Ottawa L Rev 573, 577; Kortmann (n 3) 118–20.Google Scholar

190 (1788) 1 H B1 90, 126 ER 55. See also Nelson v Duncombe (1846) 9 Beav 211, 50 ER 323, Tugwell v Heyman (1812) 3 Camp 299, 170 ER 1389, Rogers v Price (1829) 3 Y&J 28, 148 ER 1080.

191 McInnes (n 144) 54–5.

192 D.3.5.3.5.

193 (1890) 44 Ch D 94; See also Re Gibson (1871) LR 7 Ch App 52, Williams v Wentworth (1842) 5 Beav 325, 49 ER 603. See generally Stoljar (n 3) 76–94.

194 D.3.5.4.

195 Treitel (n 150) ch 13.

196 Ayres and Landry (n 24) 124; Art 2296 Louisiana CC; Leslie (n 19) 34.

197 Re F [1990] 2 AC 1 (HL) 75–6. This also applies to the defence of necessity Clerk and Lindsell (n 66) para 3, 105–6.

198 Albert, RARestitutionary Recovery for Rescuers of Human Life’ (1986) 74 California L Rev 85, 100; McCamus (n 123) 311.CrossRefGoogle Scholar

199 (1932) 2 DLR 787; Tomlinson v Bentall (1826) 5 B&C 733, 108 ER 274; Lamb v Bunce (1815) 4 M&S 275

200 Albert (n 198) 98–9.

201 Road Traffic Act 1988, s 158(2).

202 McInnes (n 144) 48.

203 Albert (n 198) 104; this is a concern shared in Germany see Larenz (n 25) 355.

204 Larenz (n 25) 355–6; this is not easy to justify Markesinis (n 28) 751; Dawson (n 6) 1126.

205 McInnes (n 144) 66–7.

206 Jaffey, PAccident Car Hire and the Recovery Damages’ [2000] LMCLQ 449. He attempts to broaden that to apply it to the hire of car after an accident, commenting on the decision in Dimond v Lovell [2002] 1 AC 384.Google Scholar

207 Degeling (n 114) 95.

208 ibid 97.

209 ibid ch 8; Degeling deals with tort claims and carers at 195–200; Degeling, SA New Rason for Restitution: The Policy against Accumulation’ (2002) 22 OJLS 435, ‘The Defence of Passing On a Policies against Accumulation: Consumers and Unjust Enrichment’ [2004] RLR 25.CrossRefGoogle Scholar

210 Degeling (n 114) 109–10.

211 Kortmann (n 3) 176–7.

212 Williams, RPreventing Unjust Enrichment’ [2000] RLR 492.Google Scholar

213 Rose, FGeneral Average as Restitution’ (1997) 113 LQR 569.Google Scholar

214 ibid 570.

215 Note, however, that in Scots law Walker separates the two—salvage is dealt with Walker (n 59) 514–20; Dawson (n 6) 1098.

216 [1988] AC 831 (HL) 857 (Lord Brandon).

217 [1987] QB 687 (CA) 709.

218 See also The Telemachus [1957] P 47.

219 Rose, FRestitution for the Rescuer’ (1989) 9 OJLS 167.CrossRefGoogle Scholar

220 Walker (n 59) 514–20.

221 McCamus (n 123)315; Sorrel v Paget [1950] 1 KB 252; this is not so in cases of the defence of necessity Clerk and Lindsell (n 64) paras 3, 109–10.

222 Sachs v Miklos [1948] 2 KB 25; Birks and Mitchell (n 130) para 15.158; Jaffey, PThe Nature and Scope of Restitution (Hart Publishing Oxford 2000) 80.Google Scholar

223 Dagan (n 73) 91; Palmer (n 84) 369.

224 (1874) LR 9 Ex 132; Chapman v Champman [1954] AC 429.

225 [1911] 2 KB 528.

226 Sheehan, DNatural Obligations in English Law’ [2004] LMCLQ 171, 181.Google Scholar

227 (1793) 2 H B1 254, 128 ER 536; Kortmann (n 3) 111–12.

228 Martin, JHanbury and Martin Modern Equity (17th ednSweet & Maxwell London 2005) 607.Google Scholar

229 Re Spurling [1966] 1 WLR 920, Armitage v Nurse [1998] Ch 241. Contrast Falcke v Scottish Imperial Insurance (1886) 34 Ch D 234.

230 Hanbury and Martin (n 228) 47–8; Kortmann (n 3) 156–8.

231 Stoljar (n 3) 10.

232 [1996] 2 All ER 672.

233 Now replaced by Trustee Act 2000, s 31(1).

234 Ersk 3.3.52–4.

235 [1981] 3 All ER 220.

236 ibid 223 (Fox LJ).

237 [1966] 3 WLR 1009 (HL); O'Sullivan v Management Agency [1985] QB 428; contrast Guinness v Saunders [1990] 2 AC 663.

238 [1964] 1 WLR 993, 1018.

239 [1989] ch 32.

240 ibid 53.

241 Excluding salvage.