Unjust Enrichment and Libertarianism

Abstract

The present paper takes on the question of whether the doctrine of unjust enrichment is compati- ble with libertarianism. Despite Walter Block’s recent arguments to the contrary, the paper argues that unless a gain is received in accordance with the libertarian principles of justice, it is without a basis and thus unjust. This fact alone proves that the concept of unjust enrichment is compatible with libertarianism. Besides, even though it is true — as Block claims — that forcing the recipient of an unjust gain to return it or pay for it involves positive duties and is therefore incompatible with libertarianism, the present paper argues that the practical consequences of this fact would be negligible, for compensatory schemes would develop on the free market anyway in justice-pre- serving steps.