FCE Benefit Administrators Owes Professional Insurer $281,672

FCE Benefit Administrators Inc. must return $281,672 in mistaken overpayments that Indian Harbor Insurance Co. made on a $3 million policy covering damages and defense expenses arising from FCE’s services as a benefit plan administrator, a California federal judge ruled.

“Nearly every authority on mistaken payments” supports requiring FCE to make restitution of the overpaid amounts, Judge Charles R. Breyer of the U.S. District Court for the Northern District of California ruled Tuesday. He ordered FCE to return the money Indian Harbor paid beyond the policy limit, which he said in a prior order was $3 million.

The dispute is ...