The applicant law firm was the victim of a wire transfer fraud, resulting in trust funds being erroneously transferred to a corporate bank account controlled by the respondent.
The bank froze the remaining funds.
The applicant brought an application for the return of the funds paid under a mistake of fact.
The court found that the funds were paid under a mistake of fact, the applicant did not intend for the respondent to receive the funds, and there was no consideration.
The respondent failed to establish a change of position defence.
The court ordered the bank to release the funds to the applicant.