Understanding Unjust Enrichment in Common Law Relationships

Insights from Recent Court Cases

In a common law relationship, the answer is yes. Will you be successful? Possibly. This was recently debated in a Superior Court case where the parties lived together from 2006 to 2022 and shared one child.

Byrne v. Milner, 2025 ONSC 5272 (CanLII), <https://canlii.ca/t/kfk2s>, sheds light on this issue.

The Case Background

The respondent owned a home in London, Ontario. The judge found that the four factors for an unjust enrichment claim were satisfied. These factors included mutual effort, economic integration, actual intent, and priority of the family.

The applicant contributed significantly to the renovation and improvement of the property. They provided substantial evidence of financial contributions and payments. By doing so, the applicant saved the respondent considerable expenditures. Evidence at trial showed that the parties were economically integrated and had formed a partnership for 15 years. They combined their efforts and resources for their family's well-being.

As a result, both parties' contributions over time led to the accumulation of wealth. Following the breakdown of the relationship, the respondent retained a disproportionate share of the assets produced through their joint efforts.

Intent and Relationship Dynamics

Just because the respondent made a conscious decision against marriage does not negate the reality of their relationship. The judge found that both parties, through their communications and actions, demonstrated their intention to support each other and their family unit. There was a clear intention from both to operate and present as a couple while living in a common law arrangement.

Remedy Sought

The applicant sought a monetary award of between 42% and 50% of the increase in the value of the London property. The judge found that the applicant demonstrated a connection between their contributions and the preservation, maintenance, and improvement of the property. Given the court's determination that this was a case of a joint family venture, the monetary award was assessed based on the applicant's proportionate contribution to the accumulation of wealth.

The judge established that the property value was approximately $822,000. Of this amount, the court determined that the applicant was owed 50% of the increase in value, amounting to $313,500.

Analyzing Unjust Enrichment Claims

Unjust enrichment claims and joint family ventures are inherently complex. They require thorough analysis and meticulous effort to satisfy the four factors mentioned earlier. This analysis takes time and detail to prepare for trial. Many cases of this nature ultimately end up in court.

The Importance of Legal Guidance

At Shankar Law, we are committed to guiding and assisting you through this complicated process. Our goal is to support you right to the very end, even if that means going to trial. We will conduct a detailed analysis and inform you of your chances of success from the outset. This way, you can make an informed decision about whether to proceed to trial or settle.

Our Commitment to You

We practice all over Ontario. We now have four offices conveniently located to serve you better in Owen Sound, Port Elgin, Wiarton, and Kincardine. Serving the Lake Huron and Georgian Bay Shorelines from Goderich to Collingwood and the surrounding areas, we are here to help with all your Family Law, Criminal Law, Real Estate Law, and Will matters.

We look forward to hearing from you and assisting you in navigating your legal challenges with confidence.