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Get an Erroneous Tax Refund? Don’t Bank on Keeping It

Feb. 25, 2021, 9:46 AM

Accidents happen—even $900 million ones.

Last year, Citibank intended to send about $8 million in interest payments to a number of Revlon Inc.’s lenders. Instead, it sent over 100 times that much. Some lenders returned the money, but some pocketed the extra cash, with about 10 investment firms choosing not to return a total of $500 million.

This week, a federal judge ruled that the lenders were entitled to keep the cash.

Discharge-for-Value Defense

In most cases, the law regards money delivered by mistake as unjust enrichment, and requires the lucky recipient to return it. But...

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