What is the test for establishing a juristic reason to deny recovery from a defendant?

Ontario, Canada


The following excerpt is from Fairview Donut Inc. v. The TDL Group Corp., 2012 ONSC 1252 (CanLII):

The juristic reason requirement is considered in stages. First, the plaintiff must establish a prima facie case that the defendant’s enrichment cannot be justified on the basis of a juristic reason from an established category. If the plaintiff is successful, then at the second stage of the analysis, the defendant can show that there is another reason to deny recovery, based on the reasonable expectations of the parties or public policy considerations. After considering these factors, the court may conclude that a new category of juristic reason should be established, that a juristic reason justified the enrichment in the particular circumstances of the case, or that there was no juristic reason for the enrichment: Garland v. Consumer’s Gas Co., at paras. 44-46.

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