Short Answer

Yes—under North Carolina law, money paid and accepted by mistake can usually be recovered from the payee through a restitution or unjust enrichment claim. But a mistaken subrogation payment does not create insurance coverage for injuries or waive coverage defenses. If coverage is disputed, ask the court for a declaratory judgment to determine who owes what. Most restitution-style claims carry a three-year deadline.

Understanding the Problem

You want to know if you can get money back from an insurer in North Carolina after it mistakenly settled a subrogation claim. Here, the insurer denied coverage for the crash vehicle because it wasn’t listed on the policy, yet it still paid property damage subrogation to another carrier—causing confusion about who is responsible for injuries and damages.

Apply the Law

North Carolina recognizes restitution-based claims—often framed as unjust enrichment or payment by mistake—when someone pays money under a factual mistake and the recipient retains a benefit that would be unfair to keep. Those claims are typically brought in Superior Court and are subject to a three-year statute of limitations. Importantly, a mistaken payment does not expand insurance coverage; coverage disputes are resolved by the court in a declaratory judgment action. Service of process follows the Rules of Civil Procedure.

Key Requirements

• Mistaken payment of a definite sum: Show the payment was made under a real mistake of fact (e.g., who was liable or whether coverage existed).
• Benefit retained by the recipient: The other carrier received and kept the funds.
• Unfair to keep the money: Equity favors refund because the payment would not have been made but for the mistake.
• Forum and deadline: File a civil action in Superior Court; most unjust enrichment/payment-by-mistake claims must be filed within three years.
• Coverage remains separate: A mistaken subrogation payment does not create bodily-injury coverage or waive coverage defenses; use declaratory judgment to resolve coverage.

What the Statutes Say

• N.C. Gen. Stat. § 1-52 (Three-year limitations) – Most unjust enrichment/payment-by-mistake claims are subject to a three-year limit.
• N.C. Gen. Stat. § 1-254 (Declaratory judgments) – Courts may declare the parties’ rights and obligations under an insurance policy.
• N.C. Gen. Stat. § 1A-1, Rule 4 (Service of process) – Governs how a civil action is commenced and served.

Analysis

Apply the Rule to the Facts: The insurer’s property-damage subrogation payment after denying coverage appears to be a mistake of fact. The receiving carrier retained a measurable benefit, and equity may favor returning those funds. That mistaken payment does not, by itself, create bodily-injury coverage on the unlisted vehicle, so you would address coverage separately via declaratory judgment. Act within the typical three-year window for restitution-style claims.

Process & Timing

1. Who files: The party seeking the refund (often the paying insurer) or another affected party seeking clarity on coverage. Where: Superior Court, Civil Division, in the proper North Carolina county. What: A civil Complaint asserting unjust enrichment/payment by mistake (and, if needed, a separate or combined claim for declaratory judgment on coverage). When: File restitution-style claims within three years of the mistaken payment; coverage timing depends on the dispute but don’t delay.
2. Serve the defendants under Rule 4. Expect an Answer in about 30 days. Coverage issues can often be briefed early via motions or resolved in parallel with discovery.
3. Obtain a judgment ordering reimbursement of the mistaken payment and/or a declaratory judgment defining who owes defense/indemnity for the crash. Use the judgment to resolve downstream injury and lien issues.

Exceptions & Pitfalls

• Voluntary payment doctrine: Recovery may be barred if the payer knew the material facts and paid without fraud, duress, or compulsion.
• No coverage by mistake: A mistaken subrogation payment typically does not waive coverage defenses or create coverage where none exists; use declaratory judgment to resolve coverage disputes.
• Release language: Any subrogation settlement/release may limit or complicate reimbursement—review terms closely before filing.
• Money as conversion: Conversion claims for money often fail unless a specific, identifiable fund is at issue; focus on restitution theories.
• Service/notice traps: Make sure all necessary parties (insurers, insureds, lienholders) are properly served to avoid delays or dismissals.

Talk to a Other Legal Matters Attorney

If you’re dealing with a mistaken subrogation payment or a coverage dispute after a North Carolina crash, our firm has experienced attorneys who can help you understand your options and timelines. Call us today at +1 (919) 555-1212.

Disclaimer: This article provides general information about North Carolina law based on the single question stated above. It is not legal advice for your specific situation and does not create an attorney-client relationship. Laws, procedures, and local practice can change and may vary by county. If you have a deadline, act promptly and speak with a licensed North Carolina attorney.