Adams v. Auto Club Ins Ass’n – Case Brief Summary (Michigan)

In Adams v. Auto Club Ins Ass'n, 154 Mich App 186, 194; 397 NW2d 262 (1986), the Court stated, "At common law, it was recognized that a payment made under a mistake of fact when not legally payable may be recovered provided the payment has not caused such a change in the position of the payee that it would be unjust to require a refund."

The Court in Adams cited General Motors Corp v. Enterprise Heat & Power Co, 350 Mich 176; 86 NW2d 257 (1957), wherein the Supreme Court held at pp 182-183, that a mutual mistake involving overpayment on a construction contract was one regarding an existing fact, was material to the entire transaction, and entitled the overpaying party to a refund.