Kershaw v. Tracy Collins Bank & Trust Co.

Supreme Court of Utah · Contracts

ContractsQuantum meruitImplied contractGratuitous servicesquantum meruitimplied promisegratuitous servicesmoral obligation

Facts

After Earl Dennis died, plaintiff Walter Kershaw, a longtime close friend and fellow Mason of Earl Dennis, took charge of helping Earl's widow, Hallie Dennis, by driving her, shopping, running errands, making minor repairs, supervising nurses and doctors, and otherwise overseeing her affairs for about three years. There was no written or oral agreement for payment, Kershaw never requested compensation during Mrs. Dennis's life, and Mrs. Dennis never offered or agreed to pay him. Kershaw said he acted because he believed Earl Dennis had charged him to look after Mrs. Dennis. Mrs. Dennis later bequeathed Kershaw a diamond ring, and Kershaw admitted she gave him the ring as compensation for his services.

Issue

Can a person recover in quantum meruit from a decedent's estate for personal services rendered where there was no express agreement for payment and the surrounding circumstances indicate the services were rendered and accepted as acts of friendship, gratuity, or moral obligation?

Rule

Although the law may imply a promise to pay when one person renders services that are voluntarily and knowingly accepted by another, an implied contract will not be imposed when the circumstances reasonably indicate the services were given gratuitously. The court must examine all the facts to determine whether the plaintiff could reasonably expect to be paid and whether the recipient should reasonably have expected to pay. Purely voluntary services, services rendered from moral obligation, and services rendered without mutual expectation of compensation are not compensable.

🔒

See the holding & full analysis

Create a free KwikCourt account to unlock the rest of this brief — and practice the case.

The court's holding and reasoning
Doctrine tests, pitfalls & exam hypotheticals
10 practice questions + 4 AI-graded essays on this case

Free sample · practice this case

Test yourself

One of 10 multiple-choice questions for this case. Pick an answer to see why.

In Boise, Noah Mercer spent eighteen months driving his late friend's widow, Evelyn Hart, to medical appointments, fixing small things around her house, and handling errands. Noah never discussed payment with Evelyn, never sent a bill, and later testified he helped because he had promised her husband he would "look after her."

If Noah sues Evelyn's estate in quantum meruit after her death, which result is most likely?

Explanation. Quantum meruit does not arise merely because one person confers a benefit. The court must examine all the circumstances to determine whether the provider reasonably expected compensation and the recipient reasonably should have expected to pay. Where services are rendered out of friendship or moral obligation, and no pay was discussed or expected, they are treated as gratuitous and are not compensable. (Derived from Kershaw v. Tracy Collins Bank & Trust Co. (n.d.).)