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Discharge-for-value defense: Difference between revisions
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{{a|negotiation|}}{{Discharge for value capsule}} | {{a|negotiation|}}{{Discharge for value capsule}} | ||
This is based on American Law Institute’s 1937 ''Restatement (First) of Restitution'', Section 14 of which provides: | This is based on American Law Institute’s<ref>About which august institution, read more [https://www.ali.org/about-ali/ here].</ref> 1937 ''Restatement (First) of Restitution'', Section 14 of which provides: | ||
{{quote|“A creditor of another or one having a lien on another’s property who has received from a third person any benefit in discharge of the debt or lien, is under no duty to make restitution therefor, although the discharge was given by mistake of the transferor as to his interests or duties, if the transferee made no misrepresentation and did not have notice of the transferor’s mistake.”}} | {{quote|“A creditor of another or one having a lien on another’s property who has received from a third person any benefit in discharge of the debt or lien, is under no duty to make restitution therefor, although the discharge was given by mistake of the transferor as to his interests or duties, if the transferee made no misrepresentation and did not have notice of the transferor’s mistake.”}} | ||
Note in particular the finding | Note in particular the finding in {{casenote|Citigroup|Brigade Capital Management}} — which, in our humble opinion, rather mounts the pavements — sidewalks, sorry — and runs down peacable pedestrians perambulating the [[common law]] of [[contract]] – that it it makes no difference that, at the time of the mistaken payment, the debt in question was not yet due under the contract. | ||
There is no equivalent under the English law of [[restitution]], where an enriched lender has to return the money: {{casenote|Barclays Bank Ltd|WJ Simms}}. This darkened cranny of the common law was exposed to harsh daylight when [[Citigroup v Brigade Capital Management|Citigroup tripped over it]] while trying to reclaim half a [[yard]] they’d accidentally shelled out to some distressed debt lenders to Revlon in 2020. | There is no equivalent under the English law of [[restitution]], where an enriched lender has to return the money: {{casenote|Barclays Bank Ltd|WJ Simms}}. This darkened cranny of the common law was exposed to harsh daylight when [[Citigroup v Brigade Capital Management|Citigroup tripped over it]] while trying to reclaim half a [[yard]] they’d accidentally shelled out to some distressed debt lenders to Revlon in 2020. | ||