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Whoops: The insurer cannot recover incorrect double payment



An insurance company that accidentally paid a $ 1 million deal twice has a hard time getting the money back.

Atlantic Specialty Co., a unit of OneBeacon Insurance Group Holdings Ltd., had agreed to pay $ 1 million to settle disputes. filed by the owner of a grill restaurant in Stockbridge, Georgia, against the city of Stockbridge, according to legal proceedings filed April 28 in the U.S. District Court in Atlanta in Atlantic Specialty Insurance Co. vs. Arick Whitson et al.

The underlying lawsuit involved claims that the restaurant owner caused him to be subjected to official harassment after he refused to compensate a city inspector's $ 60 bill, according to a news report.

In April, during the settlement agreement, Atlantic initiated a $ 1

million transfer to Mr. Whitson's bank account via Automated Clearing House. Later that day, the defendant's lawyer informed the insurer that payment of the settlement should have been made by bank transfer.

The insurer immediately took steps to stop the ACH transfer and believed it had successfully done so, linking a second $ 1 million payment to Whitson's bank account. Separately, the other sent funds to the defendant and law firm.

When it was informed that the original transfer had been made, it made several attempts to recover the original payment of $ 1 million, but received no response from the owner, despite the insurer's insurance, no charges would arise in connection with a refund.

The lawyer for the owner and the restaurant said he would return the money if he had it, but it was sent directly to Whitson and he no longer represented it.

The lawsuit filed in court claims $ 1 million. repayment, interest before and after judgment and legal fees.

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