Legal Question in Business Law in California

if a company makes a mistake and pays you more money than what you signed off on, can that company make you reimburse them the difference?

Asked on 7/11/13, 3:19 pm

4 Answers from Attorneys

Edward Hoffman Law Offices of Edward A. Hoffman

Ordinarily, yes. I can imagine circumstances in which it couldn't, but they're unusual.

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Answered on 7/11/13, 3:45 pm

Bryan Whipple Bryan R. R. Whipple, Attorney at Law

The general rule regarding legal duty to reimburse unintentional overpayments is as follows: The party receiving an overpayment has a legal duty to refund the excess amount to the paying party UNLESS two things are true: (1) neither party was aware, nor should have been aware, at the time of the overpayment, that it was indeed an overpayment; and (2) the party who received the overpayment has materially changed his/her/its position in justified reliance upon his/her/its belief that the payment was correct.

Unless both conditions are met, the overpayment should be returned. A "material change in position" doesn't mean you just took the payment and deposited it in your checking account. A material change in position would be something like using the money to pay your creditors AND not having ample other sources of money to replenish your wallet.

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Answered on 7/11/13, 3:54 pm
Terry A. Nelson Nelson & Lawless

OF course.

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Answered on 7/11/13, 8:22 pm
John Laurie Gertz and Laurie

generally yes

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Answered on 7/18/13, 11:13 pm

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