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Birchwood Land Co., Inc. v. Krizan | 115 A.3d 1009 (2015)
The principle behind an unjust-enrichment claim is that it’s unfair for someone who benefits at another’s expense to hold onto that benefit without paying for it. A successful claim doesn’t necessarily require wrongful conduct by the beneficiary, but it does require unfairness. If one landowner’s investment substantially increases the value of its neighbor’s property, is it fair to deny that owner restitution? That’s the question in Birchwood Land Company versus Krizan.
Judith Krizan bought a vacant, landlocked parcel of land in 1982. Krizan also acquired an implied access easement across an adjoining parcel that provided the only access to the property. Lacking access to a public road or utilities, the property couldn’t be developed. It sat undeveloped for 30 years.
In 2002, Birchwood Land Company purchased the land surrounding Krizan’s parcel on three sides, including the strip containing her access easement. Birchwood began to develop its property, extending the road and installing water, sewer, and electrical lines. As part of its development, Birchwood extended road access and utilities to Krizan’s property.
Thereafter, Krizan notified the town that she intended to develop her parcel. The town concluded that Krizan’s lot could now be developed thanks to Birchwood’s improvements. Consequently, the town increased the assessed value of Krizan’s land by approximately $80,000.
Birchwood sued Krizan, alleging that she’d been unjustly enriched by the increase in her property’s value due to Birchwood’s infrastructure improvements and that she should pay her share of the costs. Birchwood calculated Krizan’s proportionate share of expenses to be approximately $50,000. The trial court granted Krizan’s motion to dismiss the complaint. Birchwood appealed to the Vermont Supreme Court.
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