Legal Definitions - action for money had and received

An "action for money had and received" is a type of legal claim or lawsuit filed by one party (the plaintiff) against another party (the defendant) to recover money that the defendant possesses but rightfully belongs to the plaintiff. This claim is typically based on the legal principle of unjust enrichment, meaning that the defendant has unfairly benefited at the expense of the plaintiff, and it would be inequitable for them to retain the money.

Essentially, the plaintiff argues that the defendant received money that they were not legally entitled to keep, and there is an implied obligation for the defendant to return it. It's a way to recover funds when there isn't a formal contract explicitly stating the repayment, but fairness dictates the money should be returned.

• Accidental Overpayment: Imagine a small business owner accidentally pays a supplier twice for the same order due to an accounting error. The supplier receives two payments for one invoice.

  In this situation, the supplier has "had and received" money that rightfully belongs to the business owner. If the supplier refuses to return the overpayment, the business owner could file an action for money had and received to recover the mistakenly paid funds, arguing that the supplier has been unjustly enriched by keeping the duplicate payment.

• Pre-paid Service Not Rendered: A person pre-pays for a year-long subscription to an online educational platform, but the platform unexpectedly shuts down after only two months, and the company refuses to issue a refund for the unused portion of the subscription.

  Here, the company has "had and received" money for a service it failed to provide for the full term. The subscriber could pursue an action for money had and received to recover the pro-rated amount for the unrendered service, as the company is unjustly holding funds for which no corresponding value was delivered.

• Mistaken Bank Transfer: During an online bank transfer, a customer intends to send money to a specific family member but mistakenly enters an incorrect account number, resulting in the funds being deposited into a stranger's account.

  The stranger, in this case, has "had and received" money that was not intended for them and to which they have no legal entitlement. The customer could initiate an action for money had and received to compel the stranger to return the mistakenly transferred funds, as the stranger's retention of the money would constitute unjust enrichment.