On October 6, 2026, the First Department issued a decision in 5 Beekman Prop. Owner, LLC v. Henick-Lane, Inc., 2026 NY Slip Op. 05712, holding that the voluntary payment doctrine did not bar a claim because the payment was made by mistake, explaining:
The voluntary payment doctrine, which bars recovery of payments voluntarily made with full knowledge of the facts, and in the absence of fraud or mistake of material fact or law, does not apply on these facts. Under the doctrine, the payor — here, defendant’s insurer — must object or reserve rights at the time of payment in order to avoid the effect of the doctrine. The insurer made such a reservation here, noting on the check that it was a “Settlement Payment for” defendant. However, there was no such settlement, and therefore, no voluntary payment, as the payment was based on the insurer’s mistake.
(Internal quotations and citations omitted).
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