Terra Nova Insurance Co. v. Associates Commercial Corp.

Terra Nova (plaintiff) strongly suspected policyholder Scharbarth (defendant) staged his truck's theft for insurance money but, unable to prove fraud beyond a reasonable doubt, paid the claim to innocent payee Associates (defendant); once a grand jury later indicted Scharbarth for mail fraud, Terra Nova sued both for restitution and moved for summary judgment.

Whether a plaintiff is entitled to restitution if it made a payment due to a mistake of fact in a factual but not legal sense.