Bloomberg Features Braden Perry in ‘Unjust Enrichment’ and Citi’s $900 Million Error Article

Bloomberg Features Braden Perry in ‘Unjust Enrichment’ and Citi’s $900 Million Error Article

An employee error caused Citigroup Inc. to mistakenly pay out over $900 million of its own money to a group of lenders. So far at least one of the lenders has given the money back, but the bank is suing 11 others including Brigade Capital Management, HPS Investment Partners, and Symphony Asset management. The case raises the question of what happens when somebody comes into money by accident. How does the law treat mistaken payments and are there exceptions?

The law views a recipient that acquires money they are not entitled to as being unjustly enriched and therefore obligated to return the property. However, there are exceptions. The recipients of the money can try to argue the payments were due to them and should not be treated as a mistake.

They could also try to argue that the underlying credit agreement allows them to keep the money. Both sides will scrutinize the loan documents for language that supports their case, said Braden Perry, a partner in the Kansas City law firm of Kennyhertz Perry LLC.

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About Kennyhertz Perry’s Financial Services practice group:

Kennyhertz Perry integrates broad regulatory expertise, including compliance and enforcement, with the transactional practices to which that expertise is critical. We are called upon by businesses who need help navigating current and future regulatory challenges stemming from the global financial crisis. To assist our clients in understanding the issues that will affect their industries, entities and transactions, we understand the impact of regulations and requirements of both The Dodd-Frank Wall Street Reform and Consumer Protection Act and a wide variety of U.S. and foreign regulatory reforms targeting investment business and market structures, alternative investment fund managers, private equity and others, central clearing and exchange-trading of derivatives, market abuse and insider dealing, capital regimes, and commodity derivatives.

Kennyhertz Perry attorneys also have broad BSA/AML experience across the spectrum of bank and non-bank financial institutions. These include traditional chartered banks, broker-dealers, commodity trading advisors, money transmitters, non-bank lenders, and virtual currency businesses. We are experienced in counseling and drafting BSA/AML practices, policies, and procedures. Our combined knowledge and skill permit us to anticipate potential problems before they become serious issues and assist clients in responding effectively to regulatory and law enforcement criticisms or inquiries.

Kennyhertz Perry regularly counsels lenders, investment advisers, broker-dealers, and fund managers on the laws, rules, and regulatory developments affecting their business, including regulatory requirements, risk management, licensing and registration, sales and marketing practices and materials, manuals and training, day-to-day compliance.

About Kennyhertz Perry, LLC

Kennyhertz Perry, LLC is a business and litigation law firm representing clients in highly regulated industries. The firm was founded by two veteran Kansas City attorneys, John Kennyhertz and Braden Perry. To learn more about the firm, visit

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