Absure, Inc. v. Huffman

584 S.E.2d 507, 213 W. Va. 651, 2003 W. Va. LEXIS 73
CourtWest Virginia Supreme Court
DecidedJune 19, 2003
Docket31061
StatusPublished
Cited by5 cases

This text of 584 S.E.2d 507 (Absure, Inc. v. Huffman) is published on Counsel Stack Legal Research, covering West Virginia Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Absure, Inc. v. Huffman, 584 S.E.2d 507, 213 W. Va. 651, 2003 W. Va. LEXIS 73 (W. Va. 2003).

Opinions

PER CURIAM.

This is an appeal by Terry L. Huffman and Lisa Huffman from a summary judgment entered by the Circuit Court of Ohio County. The judgment awarded the appellee Absure, Inc., $741.42 on the ground that the appellants had been unjustly enriched by certain actions taken by Absure, Inc. On appeal, the appellants claim that the facts as developed failed to establish a basis for the award of summary judgment.

I.

FACTS

The appellee, Absure, Inc., is a real estate title company doing business in Ohio County, West Virginia. It is solely owned by David J. Sims, an attorney practicing in Ohio County.

In 1999, the appellants, Terry L. Huffman and Lisa Huffman, contracted to purchase a parcel of real estate located in Ohio County from Robert S. Salisbury and Geraldine Salisbury. To consummate the real estate transaction, the appellants arranged to purchase title insurance from the appellee, Ab-sure, Inc.

On August 26, 1999, David Sims, acting for Absure, Inc., performed a preliminary examination of the title to the property which the appellants were purchasing.1 That examina[653]*653tion revealed that certain real estate taxes had not been paid by the sellers, the Salis-burys.

Approximately two weeks later, on September 15, 1999, Mr. Sims conducted a closing of the property transaction. At the closing, the Salisburys were charged $741.42 for the “unpaid” taxes revealed by the preliminary title examination.

About a month after the closing, the Salis-burys, who had paid the taxes after the preliminary examination was completed, informed Mr. Sims that there had been an error. Mr. Sims, after looking into the matter, concluded that an error had, in fact, been made and requested that the appellants remit $741.42 to the Salisburys to correct the problem. The appellants refused to pay and, subsequently, Mr. Sims, acting for Absure, Inc. paid the Salisburys.

Subsequently, on February 9, 2001, Ab-sure, Inc. instituted the present civil action against the appellants. In its complaint, Absure, Inc. took the position that the appellants owed it $741.42, and it prayed for reimbursement under the theory that the appellants had been unjustly enriched by what had occurred. The appellants filed an answer and a counterclaim in which they asserted that Mr. Sims, in acting for Absure, Inc., had incompetently performed the title examination.2 Subsequently, discovery was conducted, and Absure, Inc. moved for summary judgment. On April 5, 2002, the Circuit Court of Ohio County conducted a hearing on the motion for summary judgment, and without taking testimony, the court granted Absure, Inc.’s motion and ordered that the appellants pay Absure, Inc.

In the present appeal, the appellants claim that the circuit court erred in entering summary judgment for Absure, Inc.

ii.

STANDARD OF REVIEW

In Syllabus Point 3 of Aetna Casualty & Surety Company v. Federal Insurance Company of New York, 148 W.Va. 160, 133 S.E.2d 770 (1963), the Court stated that: “A motion for summary judgment should be granted only when it is clear that there is no genuine issue of fact to be tried and inquiry concerning the facts is not desirable to clarify the application of the law.”

Further, the Court stated in Syllabus Point 4 of Burgess v. Porterfield, 196 W.Va. 178, 469 S.E.2d 114 (1996), that: “This Court reviews the circuit court’s final order and ultimate disposition under an abuse of discretion standard. We review challenges to findings of fact under a clearly erroneous standard; conclusions of law are reviewed de novo.”

III.

DISCUSSION

An examination of the complaint filed in the present case shows that Absure, Inc., was seeking recovery of the $741.42 in issue under the equitable theory of restitution. As explained in Prudential Insurance Company of America v. Couch, 180 W.Va. 210, 376 S.E.2d 104 (1988), that theory allows one who has mistakenly paid money to a payee to recover it later on the ground that it would be inequitable and unjust for a person to be enriched by retaining money to which he had no valid claim when the money had been mistakenly tendered to him. Specifically, in Syllabus Point 4 of Prudential Insurance Company of America v. Couch, this Court ruled that: “It is generally recognized in the law of restitution that if one party pays money to another party (the payee) because of a mistake of fact that a contract or other [654]*654obligation required such payment, the party making the payment is entitled to repayment of the money from the payee.”

In their answer to Absure's complaint, the appellants asserted that the complaint failed to state a claim upon which relief could be granted. On appeal, although they do not challenge the basic facts of the case,3 the appellants argue that there is a question as to whether David Sims, acting for Absure, Inc., was negligent in examining the title and in failing to detect that the taxes had been paid. They essentially take the position that if he was, in fact, negligent, he was responsible for what occurred and his negligence should bar restitution under the theory of unjust enrichment. They also claim the question of his negligence was a question of material fact at the time the circuit court entered summary judgment and that summary judgment was, therefore, inappropriate.

As previously stated, in Prudential Insurance Company of America v. Couch, id., the Court indicated to be entitled to equitable relief for unjust enrichment, a party must show that a payee received money to which he was not entitled and that the payment was the result of a mistake. In Taylor v. Godfrey, 62 W.Va. 677, 59 S.E. 631 (1907), the Court attempted to define the concept of mistake as that concept is involved in equitable matters. The Court stated that a mistake for which equity will give relief is defined as “some unintentional act, omission or error arising from unconsciousness, ignorance, forgetfulness, imposition or misplaced confidences.” Id. at 683, 59 S.E. at 633.

A careful examination of this definition reveals that the fact that a person who is mistaken is imperfect does not automatically preclude the effect of the mistake in the equitable context. The person can be ignorant; he can be forgetful; he may even misplace his confidence. In equity, it is not what caused the mistake which is operative, but rather the existence of the mistake. Taylor v. Godfrey, goes on to state that even if a mistake arises from negligence, the negligence does not of itself preclude the consideration of the mistake in the equitable context, provided the negligence has not adversely affected the opposing party. Specifically, in Syllabus Point 4 of Taylor v. Godfrey, the Court held: “Negligence may not of itself be sufficient to bar relief in equity on the ground of mistake, if the other party has not been prejudiced thereby.”

In this Court’s view, the Taylor v. Godfrey

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Bluebook (online)
584 S.E.2d 507, 213 W. Va. 651, 2003 W. Va. LEXIS 73, Counsel Stack Legal Research, https://law.counselstack.com/opinion/absure-inc-v-huffman-wva-2003.