Common Law Claim For Restitution - Defences - Change of position

3 important questions on Common Law Claim For Restitution - Defences - Change of position

Is it just to compel an innocent defendant to make restitution when they have drastically changed their position?

It would be inequitable to require the defendant to make restitution if they have spent the money in an exceptional and irretrievable manner (Lipkin Gorman v Karpnale Ltd)

In a situation where it not for the receipt of the money, X would have paid their bills using money from their bank account, can the defence of change of position be applied?

No, the defendant must have spent the money in a way that they would not have otherwise have done.

Is the defence available if the defendant changed his position in bad faith?

The defendant must have acted in good faith (Lipkin Gorman v Karpnale Ltd)

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