For that reason, most lawyers will throw in every affirmative defense known to man, a sum total of twenty to thirty affirmative defensesmany of which have no factual support, but there they are in the answer. Oct. 30, 2007). See also Hemink Farms, Ltd. v. BCL Constr., LLC, No. Jur.2d Payment 77). In this circumstance, the trustee may want to raise certain equitable defenses to those claims, such as laches, ratification, waiver, and estoppel. It should be noted, however, that the unclean hands defense is inapplicable altogether where the plaintiff's sins do not affect or prejudice the defendant. The record is mixed with respect to the extent the Bank was negligent in allowing Montgomery and Berkich to take over the Bank's operations prior to the completion of the sale and permitting large loans to be disbursed without board approval. The district court held that there was no fiduciary relationship between CNG and the Bank that would have required disclosure of Wilson's fraud, that there were no misrepresentations or material omissions by CNG to the Bank, that Wilson had not committed fraud against the Bank, and that there was neither evidence of a common scheme between Wilson and CNG nor evidence that CNG aided and abetted Wilson. There are very few hard-and-fast rules in fiduciary litigation, and there is a lot of gray area. Garver v. First Natl Bank, 432 S.W.2d 745 (Tex. App.Amarillo 1968, writ refd n.r.e.). The plaintiffs had agreed to be bound by the terms of a mineral lease following the settlement of a lawsuit with the FDIC. 859 (1934) (internal quotations omitted)). The error was in concluding that unclean hands was an absolute bar to recovery on the money had and received claim; the disputed facts require, for the reasons we have addressed in this opinion, that this claim be submitted to the jury, under proper instructions, for its determination. At the core of these equitable defenses is the concept that a party should not be allowed to act inconsistently: have knowledge of conduct and fail to object to it for a period of time (thereby tacitly agreeing to the conduct) and then later raising claims against the trustee for the same conduct. List of Possible Affirmative Defenses (If you don't raise, you might have waived). 1. Nevertheless, in this case there are genuine questions of fact to be resolved in determining the equities that might require CNG to return money to the Bank. Childress v. Cook, 245 F.2d 798 (5th Cir. Can the trustee point to the quarterly statements and argue that the beneficiary is not allowed to complain about the overcompensation by waiting to challenge it and by allowing the trustee to continue to do work without objection? One way we have successfully defended against these claims is by asserting that the plaintiff has committed some sort of wrongdoing or has engaged in improper conduct that prevents the plaintiff from enforcing the covenant not to compete at issue, otherwise known as the unclean hands doctrine. . A party may evidence waiver by conduct of such a nature as to mislead the opposite party into an honest belief that the waiver was intended or assented to. More specifically, to invoke equitable doctrines such as estoppel, waiver, or ratification the defendant must come with clean hands. Ford Motor Co. v. Motor Vehicle Bd., 21 S.W.3d 744, 758 (Tex. In order to prove that there was a breach of contract in your Florida law agreement, there are three elements that a party must prove. AFFIRMATIVE DEFENSES First Affirmative Defense (Failure to State a Claim) 33. 1985, writ refd n.r.e.). Web(D.I. There are several different defenses to breach of contract that you can raise in the event that someone claims you breached a contractual agreement. For example, in Bank of Am., N.A. For starters, most affirmative defenses will be waived IF you do not state them in your initial objection or answer. After the defendants employment with plaintiff ended, plaintiff sought to enforce the covenant not to compete once it discovered that the defendant had subsequently gone to work for a competitor. An unclean hands defense can highlight that the other party failed to perform under the contract terms or they committed a crime of some sort. Laches means someone waited too long to take action and it would now be unfair to enforce the claim. In order to induce John to approve, Bill hands him an envelope containing photos of John going into a motel with someone other than his wife. Id. The Bank argues it is entitled to the money it loaned the purchaser, which is proceeds in CNG's possession; but CNG argues that the Bank is not entitled to these proceeds because it has unclean hands, a defense to the Bank's 8 (" PO8 ") dismissing InfraRed's requests of February 10, 2021. The facts suggest that it will not be a simple matter to determine whether CNG accepted the Bank's money from Wilson in good faith. App. If the defendant is successful in proving the plaintiff had unclean hands through bad or illegal behavior, the plaintiff would not be able to obtain a remedy from the court. WebThe meaning of UNCLEAN HANDS is an equitable doctrine: a complainant will be denied relief if he or she has engaged in misconduct (as acting in bad faith) directly relating to the For example, your business attorney can raise an unclean hands defense that argues the person bringing the lawsuit acted in a way that should preclude anything youve done. There are three types of equitable relief that may be sought in a contract claim: In a lawsuit over a contract, the plaintiff might ask the court to order one of these three forms of relief and the defendant may claim a defense that the plaintiff has unclean hands, or that he engaged in some type of wrongdoing. The use and application of equitable defenses are perfect examples of this gray area. Wilson, who apparently had no funds at all, needed capital to finance the purchase. Change of position is but one more factor to consider in the overall balancing of equities, and in the determination of who in good conscience is the rightful owner of the money. Fraud in the Inducement Defenses of Breach of Contract. For example, if you are served with Trustee notification after someone dies, you only have 120 days in which to file a Trust contest lawsuit. App. In most cases, however, an affirmative defense could prove useful, but you wont know for sure until more evidence is uncovered. App.Dallas 1984, no writ). v. In support of this proposition it cites Heldenfels Bros., Inc. v. City of Corpus Christi, 832 S.W.2d 39, 41-42 (Tex.1992) and Tex. 5. A breach of contract is when someone in the agreement violates any of the agreed-upon terms set out in the contract. The email address cannot be subscribed. Staats v. Miller, 150 Tex. 1943); Knesek v. Witte, 754 S.W.2d 814, 816 (Tex. Like all equitable claims and defenses, these defenses largely depend on the facts and circumstances of the case. The Bank argues that the district court erred because a fraud claim can be based upon the mere showing that CNG was aware of Wilson's fraud and accepted its proceeds. MIAMI BUSINESS LITIGATION: TRADEMARK INFRINGEMENT AND CONSUMER CONFUSION, FORT LAUDERDALE BUSINESS LITIGATION: TRADE SECRETS PROTECTED AS A COMPILATION, MIAMI BUSINESS LITIGATION: NON-COMPETE COVENANTS IN COMMERCIAL LEASES. Going at this alone is not a good idea, especially if you are unsure what youre getting into. App.San Antonio 2014, pet. The court of appeals affirmed a summary judgment in favor of the bank, holding among other things that the plaintiffs claims were barred by laches because the plaintiffs had acquiesced in the brothers handling of the estates proceeds for a period of nineteen years. The Bank further states that CNG raised its asking price for its subsidiary companies substantially after it learned of Wilson's fraud, presumably to take advantage of the known fraud in whatever way it could. The mandate in Harris was recalled, but the original decision stands unchanged except [with respect to unrelated issues]. 727 F.2d 1368, 1371 (5th Cir.1984). WebA Practice Note discussing patent unenforceability defenses to patent infringement claims, including inequitable conduct before the US Patent and Trademark Office (USPTO), unclean hands, and patent misuse. 1996); Bass & Co. v. Dalsan Props.Abilene, 885 S.W.2d 572, 577 (Tex. App.El Paso 1975, writ refd n.r.e.) App.Tyler March 5, 2019, pet. For example, estoppel simply means that a party should not be allowed to win because it would be unfair for some reason. The court, however, found in Gallos favor, then Gallo filed a lawsuit claiming malicious prosecution, and intentional interference with contract against Kendall-Jackson. However, it was the defendants tortious conduct which placed the plaintiffs in a position of either having to accept the lease or else lose the property. In Pari Delicto as Affirmative Defense vs. Motion to Dismiss The legal term clean hands refers to a defense in a civil lawsuit regarding a contract, which allows a defendant (the person being sued) to claim that the plaintiff (the person suing) has engaged in wrongdoing. or contact us to discuss your claims in detail. v. Cadence McShane Corp., No. See, e.g., Harris v. Sentry Title Co., Inc., 715 F.2d 941, 949-50 (5th Cir.1983) (court refused to impose constructive trust on property third party failed to surrender).2 Similarly, where monetary transactions are involved, the payor cannot recover his money when the payment was made intentionally and in circumstances showing a determination to pay without choosing to investigate the facts. Gulf Oil Corp. v. Lone Star Prod. 572, 576 (1909) (negligence must amount to violation of positive legal duty for it to wholly bar relief-and then only if the other party has been prejudiced). at 357. See, e.g., Hollander v. Zito, No. Discussion at 765. N.B., 811 S.W.2d 634, 638 (Tex. Thus the unclean hands defense seems to operate akin to the way a comparative (as opposed to contributory) negligence regime does for ordinary tort claims.3, The evidence cited by CNG against the Bank to support its affirmative defense of unclean hands sounds in negligence. Altamonte Springs, FL 32714 This article is not a substitute for legal advice tailored to a particular situation. Motion to Strike Affirmative Defenses These hands actually look pretty clean. There are indeed considerations for the jury; if the jury finds that the Bank's actions constituted negligence but that the Bank presents a cognizable claim, it will have to take that degree of unclean hands into account and weigh it against the proved misconduct of CNG when determining whether the amount (if any) of the Bank's loan should be returned to it.5. denied). Courts are naturally hesitant to return money to plaintiffs when both parties are at more or less equal fault; hence we have the equitable defenses such as unclean hands. App.Amarillo Mar. Further, waiver is largely a question of intent. 05-07-00079-CV, 2008 Tex. The doctrine applies when it would be unconscionable to allow a person to maintain a position inconsistent with one in which he acquiesced, or of which he accepted a benefit. While waiver may be inferred from conduct, waiver by implication should not be inferred contrary to the intention of the party whose rights would be injuriously affected thereby, unless the opposite party has been misled to his or her prejudice. The Bank did not mention knowing receipt as a basis for fraud in its opening statements or proposed jury instructions, nor in opposition to CNG's Rule 50 motion. The contact form sends information by non-encrypted email, which is not secure. A party can impliedly waive the other partys breach where he fails to object to a deviation by the other party from the strict terms of the contract. D. Potential Arguments To Defeat Equitable Defenses. . Every employees claim is unique. In this example of a clean hands dispute, the Court ruled that it should not that the misconduct in the particular transaction or connected to the subject matter of the litigation that affects the equitable relations between the litigants is sufficient to trigger the defense. The appellate court issued a writ of mandate ordering the trial court to vacate its order granting summary judgment. Unclean hands means the party being sued acted unfairly too, and waiver means someone (by their actions) waived their right to a claim. CNG further argues that there can be no claim for money had and received without some affirmative inequitable conduct by the defendant. The trustee may inadvertently use its standard formula for compensation, which was technically too much and over the amount allowed under the trust document. App.Beaumont 1984, writ refd n.r.e.). California Trust, Estate & Probate Litigation. 1999, pet. If you have someone making a claim against you, but they made a claim after any of thoseabove-listed timelines, make sure you reach out to your attorney. 1969)). The doctrine of unclean hands is an affirmative defense that prevents one who has engaged in improper conduct regarding the subject matter of the cause of When Can Foreign Judgments Be Enforced in the US? Again, it has been declared that a cause of action for money had and received is less restricted and fettered by technical rules and formalities than any other form of action. But there is another type of defense: the affirmative defense. Mfg. If you are facing a breach of contract lawsuit and need help making sense of what is going on,contact usfor a case evaluation. WebAmaro (2013) 213 Cal.App.4 1102, 1110 [any conduct that violates conscience, good faith or other equitable standards of conduct is sufficient to invoke the doctrine of unclean hands]. Please try again. Peter Mavrick is a Miami non-compete lawyer who has won non-compete litigation in Miami-Dade Circuit Court through the unclean hands affirmative defense. App.Dallas 1991, no writ). TermsPrivacyDisclaimerCookiesDo Not Sell My Information, Begin typing to search, use arrow keys to navigate, use enter to select, Stay up-to-date with FindLaw's newsletter for legal professionals. Beneficiaries may argue that the trustee has acted with unclean hands and therefore may not take advantage of equitable defenses. App.San Antonio 2001, no pet. Although unclean hands is a defense exclusive to claims seeking equitable relief, it has proven to be very useful in the employment context, particularly in cases where an employer is seeking to enforce a covenant not to compete. On appeal, the Florida Third District Court of Appeal held that the trial courts failure to consider the defenses asserted by the defendant regarding his forced resignation was error and remanded the case for a hearing on same. Unclean Hands The doctrine of unclean hands may relate to a plaintiffs illegal or egregious conduct, such as extreme and oppressive demands or false statements that marks are registered when they are not. Beneficiaries should not generally be allowed to lay behind the log, have knowledge of a trustees conduct, not object to such conduct for a period of time, and then later complain in litigation of that conduct. If this happens to you, or if someone claims youve breached a contract, there are several defenses to breach of contract that you can use to defend your position. In a civil lawsuit, an equitable remedy is a remedy, or resolution, that does not involve the payment of monetary damages. 2. This is consistent with our case law. Rosenbaum v. Tex. Such was the case in Bradley v. Health Coal., Inc., 687 So. The bank had handled the deposits for many years, as directed by the estates executors, who were the wifes brothers. If you are an entrepreneur currently bound by a covenant not to compete with a former employer preventing you from opening your business, or if you simply would like more information regarding covenants not to compete in general, the Mavrick Law Firm is available to help. In its ruling, the Court described the clean hands defense, saying: The defense of unclean hands arises from the maxim, He who comes into Equity must come with clean hands. The doctrine demands that a plaintiff act fairly in the matter for which he seeks a remedy. The sister appealed. App. If the parties who entered into the agreement were mistaken about the terms of the contract, you could raise a mutual mistakes defense. The court of appeals issued a very lengthy and detailed opinion affirming in part and reversing in part the trial courts judgment. App.Waco 1981, writ dismd) (petitioners affidavit created fact issue on whether she accepted the benefits due to financial need and duress precluding summary judgment on estoppel). App.Amarillo 1991, no writ). at 356. The broken promise caused damage to the other party. Sandi Samms v. Autumn Run Cmty. The Court explained that the clean hands doctrine does not deny relief to a party who has committed any misconduct in the past, but only misconduct that is directly related to the issue for which he seeks relief. 8 (c) and, where applicable, should be alleged in an answer in order to be preserved. The similar defense of in pari delicto (in equal fault) can be seen as the counterpart affirmative defense applying to claims at law. Van Indep. It discusses the elements of these defenses and practical considerations for both accused infringers and patent owners for litigating them through In other words, even if everything the petition says is true, you still are not liable because of your affirmative defense. Contact the Orange County Business Litigation Attorneys at Brown & Charbonneau, LLP for a consultation of your legal case. Montgomery and Berkich colluded with Bank president Tomas Aldan and offered to buy the Bank. Adams v. First Nat. App.Waco 1957, writ refd n.r.e.). Of course, you will need proof that someone held you against their will, or else this claim is void. As stated by the Third DCA: In our view, if the employer ordered the employee to sell unfit products, or to alter invoices so as to defraud customers, and the employee was forced to resign for refusing to do so, then the employer would have unclean hands and would not be entitled to an injunction. To explore this concept, consider the following clean hands definition. WebThe doctrine is often stated as those seeking equity must do equity or equity must come with clean hands. Examples of the Clean Hand Doctrine For example, if a seller sues a For example, your business attorneycan raise anunclean handsdefense that argues the person bringing the lawsuit acted in a way that should preclude anything youve done. In Florida law, there are several different defenses to breach of contract, known as affirmative defenses, which is your response to the lawsuit. If successful, the plaintiffs claim will be dismissed. Civ. As mentioned earlier, several different defenses are available for you to defend your case. CNG thus argues it is under no obligation to return the Bank's money because the Bank was complicit in its own loss. Since this claim is waived if NOT pleaded at the beginning of the lawsuit, it is always a good idea to include it. As mentioned earlier, an affirmative defense you can use is unclean hands. Kendall-Jackson Winery, a California winery, had a reputation for producing fine wines at mid-price. View Map, 1395 Brickell Avenue There can be no waiver unless so intended by one party and so understood by the other. Id. Id. We need not rule on the motion, however, as the Bank's view of the law is not the law of Texas: [R]ecovery for money had and received, though legal in nature, is controlled by equitable principles, and it is axiomatic that the clean hands' doctrine functions in equitable actions. Texas Bank & Trust Co. v. Custom Leasing, Inc., 498 S.W.2d 243, 251 (Tex.Civ.App.-Tyler 1973) (citing 6 Tex. Facility v. Personnel Servs., Inc., 895 S.W.2d 889, 894 (Tex. In the summer of 2001 two sophisticated con-artists-now serving time in federal prison on various fraud convictions-arrived in Saipan, an American territory in the Western Pacific. (citing Loggins v. Gates, 301 S.W.2d 525, 527 (Tex. In 2011, the trustee filed suit to resign and obtain a judicial discharge. However, the plaintiff may raise the argument of unclean hands as well, claiming that he is entitled to relief because the defendant acted with unclean hands. App.Dallas 1987, writ denied); Brodrick Moving & Storage Co. v. Moorer, 685 S.W.2d 75, 77 (Tex. For example, in Vessels, the court overturned summary judgment on the defendants defense of ratification. Wilson actually informed Montgomery and Berkich that these accounts did not exist, but the two loaned him the $5 million anyway. He tells the court how he was coerced into signing the contract, even showing the judge the photos Bill had given him. In re EGL Eagle Global Logistics, LP, 89 S.W.3d 761, 766 (Tex. Civ. WebUnclean hands is a common "affirmative defense" pleaded by defendants and must be proved by the defendant. App.Houston [14th Dist.] So, i If during a trial by jury a party has been fully heard on an issue and there is no legally sufficient evidentiary basis for a reasonable jury to find for that party on that issue, the court may determine the issue against that party and may grant a motion for judgment as a matter of law against that party. Fed.R.Civ.P. Affirmative defenses are independent legal and equitable reason as to why you cannot be held liable. denied). May 26, 2022 Summary This checklist describes the affirmative defense of unclean hands for a breach of contract case. View Map, 800 Third Ave. LEXIS 1665 (Tex. & Mort. Id. Sellers of products may use the unclean hands affirmative defense if they fraudulently induce a customer to sign a contract and then sue the customer to recover payment for those products based on the contract since the plaintiff in fraudulently inducing the customer to sign the contract lost his right to sue under the clean hands doctrine. As such, often times we are confronted with covenants not to compete signed by the entrepreneur when he or she was employed with his or her former employer. 17, D.I. For example, estoppel simply means that a party should not be allowed to win because it would be unfair for some reason. If the defendant can prove that the plaintiff has unclean hands, i.e., acted unethically, then the plaintiffs complaint will be dismissed. This defense is an affirmative defense that can be used by defendants; however, keep in mind that the defendant must prove the defense in order for the complaint to be dismissed. Gulbenkian v. Penn, 151 Tex. In Unilogic, Inc. v. Burroughs Corp ., supra, 10 Cal.App.4th 612, 619, the plaintiff asserted that its claim for conversion could not be barred by the defense of It also states the reason why your actions were warranted. App.Houston [1st Dist.] See, e.g., Sinclair Houston Fed. App. At the close of the Bank's evidence, the district court granted judgment as a matter of law to CNG. The most obvious defense is to disagree with the allegations contained in the petition filed against you. Knowing your defenses to breach of contract can protect you in these types of instances. The defense of laches requires the establishment of two distinct elements: (1) an unreasonable delay by the moving party in asserting their rights and (2) the person raising the defense must be disadvantaged as a result of this delay by the moving party. A statute of limitation is a common defense used when someone tries to make a breach of contract claim against you, but they did not report it within the allotted time. C. Recent Case Using Quasi-Estoppel To Dismiss Claims Against A Trustee. See also Herider Farms-El Paso, Inc. v. Criswell,519 S.W.2d 473, 477-78(Tex. Goodenough proves that Hardnose had shown her faked estimates from subcontractors to justify his original bid to Goodenough. Make sure you reach out to your business attorney for more information on what would warrant an impossibility of performance defenses of breach of contract. The court of appeals affirmed the application of the trustees affirmative defense of quasi-estoppel based on the beneficiarys prior consent to trust investments in other real estate investments: The affirmative defense of quasi-estoppel precludes a party from asserting, to anothers disadvantage, a right inconsistent with a position she has previously taken. The unclean hands doctrine is derived from the maxim that he who comes into equity must come with clean hands. 7 Deference is provided to a government agency App.Austin 1995, no writ) (estoppel); Pickett v. Heygood, Orr & Reyes, L.L.P., No. See Equilease Corp. v. Hentz, 634 F.2d 850, 853 (5th Cir.1981) (It is patently unfair to require an innocent payee who has received and used the money to satisfy a debt to repay the money.); Aetna, 186 S.W.2d at 842. Connect with me on LinkedIn. LEXIS 8586, at *45 (Tex. App.Dallas 2012, pet. Champlin Oil & Refining Co. v. Chastain, 403 S.W.2d 376 (Tex. The three elements of a breach of contract: In order to win a breach of contract case, the lawsuit must prove all three elements. LSR Joint Venture No. 7 Things to Know About an International Child Custody Dispute. After a bench trial, the court rendered judgment approving the trust accounting, approving the trustees administration, and holding that the trustee, individually and in his capacity of trustee, was completely discharged and relieved of all duties and was fully and completely released and discharged from any and all claims, duties, causes of action or liabilities (including taxes of any kind) relating to any and all actions or omissions in connection with his administration of the DPH Trust. Id. In Florida, you, the defendant, have twenty days to file a response. Star Athletica, L.L.C. Thus, when seeking an equitable remedy, a party must do equity and come to the court with clean hands. ); In re EGL, 89 S.W.3d at 766; Texas Enters., Inc. v. Arnold Oil Co., 59 S.W.3d 244, 249 (Tex. Yet this defense again depends on good faith, which, at least according to substantial evidence, may have been lacking. Trademark 101 Definition Find the right-hand lawyer currently . The doctrine of unclean hands is an affirmative defense that prevents one who has engaged in improper conduct regarding the subject matter of the cause of action, to pursue the claim at issue. Sender v. Mann, 423 F. Supp. Miami, FL 33131 App.Fort Worth 1999, pet. Civ. There is not a specific definition of what behavior constitutes unclean hands, as it depends on the specific circumstances of the contract or transaction, and each partys behavior. (904) 236-5317 The Mavrick Law Firm regularly represents entrepreneurs who open businesses in industries in which they were formerly employees. (The doctrine applies against a litigant whose own conduct in connection with the same matter or transaction has been unconscientious, unjust, marked by a want of good faith, or violates the principles of equity and righteous dealing.). v. Ocwen Fin. This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply. Steubner Realty 19, 817 S.W.2d at 164. App. If you can prove that the other party coerced you into signing into the agreement, you could raise this defense. Suite 800 The defense applies to bar an equitable claim no matter the claims merits when the plaintiff has engaged in some manner of unscrupulous conduct, overreaching, or trickery that would be condemned by honest and reasonable men. U.S. Bank National Association v. Co. v. Ed Bell Invs., 864 S.W.2d 211, 215 (Tex. Further, quasi estoppel may be asserted even though there has been no concealment or misrepresentation on one side, and no ignorance or detrimental reliance on the other side. 3. Specifically, defendant contended he refused to resell certain plasma products that had been returned by a customer because he felt they were unsafe for medical use due to the handling during shipping. 412, 252 S.W.2d 929 (1952). denied); see also Flores v. Flores, 116 S.W.3d 870, 876 (Tex. (D.I. op.) The plaintiffs unconscionable conduct was directly 07-17-00457-CV, 2019 Tex. Burton v. Natl Bank of Commerce, 679 S.W.2d 115 (Tex. In order to successfully claim the defense of unclean hands, the defendant must prove the plaintiff has not acted in good faith. Credit Union v. Hendricks, 268 S.W.2d 290, 295 (Tex.Civ.App.-Galveston 1954). An example of unclean hands could be if your loan servicer doesn't properly apply your mortgage payments to your loan, and you fall into foreclosure because of it. 1999)). As a defendant, you only need to prove one of those elements wasnt satisfied. In 2007, the trustee of four trusts invited his mother, the primary beneficiary, and his siblings, also beneficiaries, to participate in a real estate investment that he created by allowing the use of trust funds. The elements of ratification are: (1)approval by act, word, or conduct; (2)with full knowledge of the facts of the earlier act, and (3)with the intention of giving validity to the earlier act. Kendall-Jackson asserted a defense that Gallos complaint should be barred by the doctrine of unclean hands. In defending such a lawsuit, the defendant argues that the plaintiff should not be given relief by the court because he acted in bad faith, or unethically, or even illegally, in regards to the subject of the lawsuit. Lott, Inc. v. Pittsburgh Plate Glass Co., 432 S.W.2d 583, 586 (Tex. When a plaintiff's own actions, rather than the defendant's equitable wrongs, are the source of the plaintiff's loss, there can be no unjust enrichment. Dunnagan v. Watson, 204 S.W.3d 30, 41 (Tex. Weban unclean hands defense. Your affirmative defense may excuse or justify the reason the lawsuit is based upon. n. a legal doctrine which is a defense to a complaint, which states that a party who is asking for a judgment cannot have the help of the court if he/she has done anything unethical in relation to the subject of the lawsuit.