People enter into contractual relationships in Maryland on a daily basis. Not all of these arrangements are written out in an enforceable document or feature specific set values. This is where the legal doctrine of quantum meruit comes into play.

Quantum meruit is used to identify the fair value of services already rendered where there was no price agreed upon for the services. This is relevant in situations where unexpected external forces cause the service to stop, leaving one or more of the parties in a difficult situation. Quantum meruit accounts for the value of time spent, materials provided, and the normal rate of compensation for similar work.

You should never be intimidated out of pursuing a fair resolution to your contractual dispute by complex legal terms of art. To learn more about the laws in Maryland that may affect your situation, such as quantum meruit, you can call (410) 305-9287 to speak to the experienced Maryland contract lawyers at Heyman Law Firm and schedule your free initial case evaluation right now.

What Does Quantum Meruit Mean in Maryland Contract Law?

The phrase “quantum meruit” comes from Latin, meaning “the amount one deserves or has earned.” This phrase is used in court cases to determine the fair market value of goods or services rendered. It is used essentially to enforce the terms of an agreement to provide services even where no enforceable contract existed.

Practically, quantum meruit refers to a legal action to recover compensation for such goods or services provided when the non-providing party fails to honor the terms of their agreement with the providing party. Quantum meruit implies a promise or agreement to pay a fair sum of money in exchange for non-monetary consideration, such as labor or materials.

When is Quantum Meruit Used in Maryland Contract Law?

Quantum meruit is useful if there were no specific, lawfully enforceable contract between the parties, but one party had already performed their part of the agreement. The doctrine establishes the amount of payment for services rendered when there is uncertainty as to the amount expected for the services. In other words, if one party agreed to provide services but unexpected events caused the work to stop before it was complete, quantum meruit is used to calculate the value of what had already been provided.

The doctrine is also helpful when there was a valid contract, but the terms of the agreement do not contain a specific sum or payment. This may be the case in many areas where the cost of goods and services may not be clear at the outset of the work. Some vendors may provide a bid or estimate, but if these are not specifically made to be a part of the contract, an unexpected cancellation of the agreement may pose issues.

How is Quantum Meruit Calculated in Maryland Contract Law?

If work was suddenly stopped on a project and a service provider had not been paid for the work they had already done, they could sue for that payment using quantum meruit. In Maryland, courts evaluate the value of work already done using a few key factors. These factors include the following:

• The amount of time and money that the service provider already spent on the work
• The customary charge, or normal rate of pay, expected for the work
• Any materials provided or used in the course of the work already done

A calculation of quantum meruit will also take into account the total value realized already by the other party as a result of the work already done. This can be complicated depending on the situation, as every service is different. Two projects that halt halfway through the job might not provide the same amount of value to the recipient, and value may be calculated differently depending on the nature of the service.

Examples of Quantum Meruit in Maryland Contract Law

As in many cases, explaining a complex legal doctrine is often easiest when using examples. Below is a hypothetical situation that illustrates how quantum meruit is used to make parties whole after an unexpected stoppage in services.

Let’s say that a homeowner verbally agrees to pay a contractor to build an exterior garage on their property to store their antique car. The two parties did not agree on a set price, as the contractor could not predict the cost of materials or the amount of time the work would take. The contractor begins the process of building out the garage by securing materials, paying workers to lay the foundation, and spends a considerable amount of time developing blueprints.

Shortly after the actual work on the garage has begun, the homeowner receives a great offer to buy their car and sells it. No longer needing the garage, the homeowner tells the contractor to stop work on the garage. The homeowner has not paid the contractor for the work already done, and the contractor takes the homeowner to court.

Because the homeowner hired the contractor to do work but did not specify a price, the contractor can rely on the doctrine of quantum meruit to recover equitable value for the time and money spent on the work already done, the services of the contractor’s employees, and the materials used in the construction already done.

One example cannot account for all of the various ways in which quantum meruit could apply in different situations. If you are involved in a dispute over the termination of services and need more information about how the doctrine of quantum meruit, we recommend discussing these and other longstanding legal doctrines with a knowledgeable Columbia, MD contract attorney.

Learn More About Maryland Contract Law from Heyman Law Firm for Free Today

To schedule your free initial case evaluation with the seasoned Baltimore contract attorneys at Heyman Law Firm right now, call our offices at (410) 305-9287.