Opinion
November 17, 1992
Appeal from the Supreme Court, New York County (Beatrice Shainswit, J.).
It is undisputed that plaintiff First Wall Street's delivery to defendants' securities account of the shares of Redcor Corporation stock, rather than that of Redcon Gold Mines Limited, was a mistake, and that defendants knowingly received value far in excess of that which they were rightfully entitled to. Defendant L. Richard Hart, a former chief financial officer, has engaged in highly sophisticated forms of trading since 1950, and was no novice to the ways of the market.
The record establishes that all proceeds of the sale of the misdelivered Redcor stock have been retained by defendants, and remain capable of delivery to plaintiff. The existence of the funds in defendants' account would therefore preclude, as a matter of law, any defense to plaintiff's claims, and summary judgment to the plaintiff and third-party defendant was properly granted. The rule permitting a person to recover money paid by mistake has its underpinning in unjust enrichment, and applies even if the mistake is due to the payor's own negligence (Manufacturers Hanover Trust Co. v Chemical Bank, 160 A.D.2d 113, 117, lv denied 77 N.Y.2d 803; Merrill Lynch, Pierce, Fenner Smith v Arcturus Bldrs., 159 A.D.2d 283). Nor can it be said that the IAS Court abused its discretion in assessing interest, particularly in view of plaintiff's clear right to the proceeds (CPLR 5001). However, as conceded by plaintiff at oral argument, interest should have been awarded from June 10, 1982, when plaintiff informed defendants of the error and requested return of the monies received from their sale of the Redcor stock, rather than June 16, 1978, when the Redcor stock was first received in defendants' account. We have considered defendants' other arguments, and find them to be without merit.
Concur — Carro, J.P., Ellerin, Asch and Rubin, JJ.