New York Court of Appeals
The Kingston Bank, Appellant v. Roeliff Eltinge
June 11, 186940 N.Y. 391
Summary
The Court reversed the lower court's judgment and ordered a new trial, holding that money paid to the defendant under a mistake of fact must be refunded to the plaintiff even though the plaintiff could have discovered the mistake through reasonable inquiry. The Court rejected the defenses that the plaintiff had the means to learn the true state of the executions and that the defendant would lose his lien if required to repay. A dissent by Justice Daniels argued that the equities were equal and the plaintiff should not recover.