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Citibank Revlon Wire Transfer Case
2d Cir Reverses Ruling Money
Didn't Have To Be Returned
By Matthew
Russell Lee, Patreon Maxwell
book
BBC -
Honduras
- CIA
Trial book - NY
Mag
SDNY COURTHOUSE,
Sept 8 – As Citibank tries to
recoup the money it wired out
on August 11, 2020, the
virtual / Zoom trial began on
December 9 before U.S.
District Court for the
Southern District of New York
Judge Jesse M. Furman. Inner
City Press reported daily on
the trial, below.
On February
16, Judge Furman ruled that
the Defendants could keep the
money.
On September 8,
2022, the Second Circuit Court
of Appeals reversed: "Plaintiff
Citibank, N.A, the
Administrative Agent for the
lenders on 4 a $1.8 billion
seven-year syndicated loan to
Revlon Inc., appeals from the 5
judgment of the United States
District Court for the Southern
District of 6 New York (Jesse M.
Furman, J.) in favor of
Defendants, the Loan 7 Managers
for certain lenders, who
received and refused to return 8
Citibank’s accidental,
unintended early repayment of
the loan. The 9 district court,
after a bench trial, relying on
Banque Worms v. BankAmerica 10
International, 570 N.E.2d 189
(N.Y. 1991), ruled that the rule
of discharge11 for-value
provided a defense against
Citibank’s suit for restitution.
Held, 12 because the Defendants
had notice of the mistake and
because the lenders 13 were not
entitled to repayment at the
time, the rule of Banque Worms
does 14 not protect the
Defendants. The judgment is
VACATED and the case is 15
REMANDED to the district court."
Full decision here.
***
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