New York Court of Appeals
Louis H. Pink
April 27, 1937274 N.Y. 167
Summary
The Court of Appeals reversed the Appellate Division and granted the plaintiff's motion to dismiss the defendant's setoff defenses, holding that the offsets were not permissible in a restitution action because no mutual debts existed at the time of rehabilitation. The decision rests on the equitable principle against unjust enrichment and the inapplicability of Insurance Law § 420 to the present claim. Justice RIPPEY's dissent argued that the setoffs were proper under the statutory provision.