Restitution

Origin

Middle English restitucioun, from Anglo-French, from Latin restitution-, restitutio, from restituere to restore, from re- + statuere to set up

• 14th Century

Definitions

• 1: an act of restoring or a condition of being restored: as

a : a restoration of something to its rightful owner

b : a making good of or giving an equivalent for some injury

• 2: a legal action serving to cause restoration of a previous state

Description

The law of restitution is the law of gains-based recovery. It is to be contrasted with the law of compensation, which is the law of loss-based recovery. Obligations to make restitution and obligations to pay compensation are each a type of legal response to events in the real world. When a court orders restitution it orders the defendant to give up his gains to the claimant. When a court orders compensation it orders the defendant to compensate the claimant for his or her loss.

This type of damages restores the benefit conferred to the non-breaching party (the plaintiff). Simply, the plaintiff will get the value of whatever was conferred to the defendant when there was a contract. There are two general limits to recovery, which is that a complete breach of contract is needed, and the damages will be capped at the contract price if the restitution damages exceed it.

The orthodox view suggests that there is only one principle on which the law of restitution is dependent, namely the principle of unjust enrichment. However, the view that restitution, like other legal responses, can be triggered by any one of a variety of causative events is increasingly prevalent. These are events in the real world which trigger a legal response. It is beyond doubt that unjust enrichment and wrongs can trigger an obligation to make restitution. Certain commentators propose that there is a third basis for restitution, namely the vindication of property rights with which the defendant has interfered. It is arguable that other types of causative event can also trigger an obligation to make restitution.[1]

Otherwise, restitution in moral theology signifies an act of commutative justice by which exact reparation as far as possible is made for an injury that has been done to another.