Timothy Holland and Adrienne Koch Write Bloomberg Law Insights Article on Citibank Ruling
Timothy J. Holland and Adrienne B. Koch published an article with Bloomberg Law Insights regarding the implications of the recent In re Citibank mistaken payment ruling. The court held that Citibank, which intended to transfer only $7.8 million in interest payments on behalf of Revlon, cannot recoup more than $500 million that it mistakenly included, because those funds were part of a debt actually owed to the recipients — even though that debt was not yet due.
In their article, the authors note that the court relied on a 30-year-old case with different facts in the Citibank decision and say it’s time to consider new case law for these situations.
“The appellate courts should, in sum, take this opportunity to provide much-needed clarification in light of the meaningful factual differences between Banque Worms and In re Citibank,” they write.
Read the full article here.