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A defence to a claim for restitution for unjust enrichment first formally recognized by Lord Goff in Lipkin Gorman v Karpnale Ltd [1991] 2 AC 548 (HL). The defence allows the defendant to set against his enrichment the amount of disenrichment that he has sustained but would not otherwise have sustained had it not been for the enrichment. In Lipkin Gorman the enriched casino was liable to make restitution for amounts received from a compulsive gambler who had obtained the stake money dishonestly. However, the extent of the casino's liability was reduced by the amount it had paid out in winnings to the gambler.

Subjects: Law.

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