District Judge Gregory Woods

Read Full-Text Decision

On April 30, 2001, plaintiff—developer of a Pakistan power plant—contracted with defendants Pendekar Kabirwala Cayman Co. (PKCC) and Pendekar Holdings (Kabirwala) Ltd. PKCC agreed to pay a percentage of certain dividends it received from the subject power plant’s owner to plaintiff. After disagreements as to the amount due it, plaintiff sued defendants in 2016, on claims including breaches of contract and the covenant of good faith and fair dealing, and unjust enrichment. The sole remaining relief sought by defendants was dismissal of plaintiffs’ claims for unjust enrichment and breach of the covenant of good faith and fair dealing. Noting that there was no dispute of the existence of an enforceable contract between the parties, District Court, applying governing New York law, granted defendants the subject claims’ dismissal as being duplicative of plaintiff’s contract breach claim. As a matter of law, an unjust enrichment claim could not be maintained alongside a properly asserted contract breach claim. In finding that plaintiff’s covenant breach claim duplicated its contract breach claim, the court found that both claims arose from the same factual predicate—failure to pay the amount due under the subject April 2011 agreement.