Opinion ID: 1864112
Heading Depth: 1
Heading Rank: 2

Heading: Equitable Relief in this Case.

Text: The precise nature of the equitable relief sought by Krieger has been difficult to identify. His initial brief claimed that the right of rescission was based on mutual mistake and also argued that the DHS would be unjustly enriched if Krieger does not receive credit for his labor. In his reply brief, however, Krieger suggests he is relying only on mutual mistake. We do not find merit in either theory. The mutual mistake relied on by Krieger is actually a combination of two independent mistakesKrieger's failure to list the insurance policy in his original application and the DHS's failure to follow through with a second inquiry about the policy. These were not mutual mistakes; they were separate mistakes, both in their subject matter and their timing. One party's mistake, coupled with the other's ignorance of it, does not amount to a mutual mistake. See Zurich Ins. Co. v. Bass, 443 S.W.2d 371, 374 (Tex.Civ.App.1969). To be mutual, a mistake must exist at the time of the contract and must be common to both parties. See Beynon Bldg. Corp. v. National Guardian Life Ins. Co., 118 Ill.App. 3d 754, 759-60, 74 Ill.Dec. 216, 220, 455 N.E.2d 246, 250 (1983). These factors are not found in this case. We also reject Krieger's unjust enrichment argument. The DHS was not enriched by the services rendered for the Waterloo Pollution Control Plant. Krieger worked for the Waterloo plant, not for the DHS, and the DHS received no benefits from his services. While Krieger's work through CWEP furthered the object of the department's CWEP agreement, there is no claim that denial of an offset to Krieger would in any way jeopardize that agreement. There is a valid public interest in encouraging accurate and truthful information by AFDC applicants. Possible recoupment of benefits paid on the basis of false or erroneous information provides an incentive for accuracy, and denying recoupment would frustrate that policy. As a California court said in an analogous case, [i]t is plain that the public's interest in recoupment of monies improperly paid to individuals would not be served by application of equitable estoppel against DSS [Department of Social Services]. To allow the DSS to apply equitable estoppel would operate to frustrate the strong rule of public policy which the statutory requirements represented. Lentz v. McMahon, 197 Cal.App.3d 445, 231 Cal.Rptr. 622 (1987) (citation omitted). We affirm the court of appeals decision and the judgment of the district court. DECISION OF COURT OF APPEALS AND JUDGMENT OF DISTRICT COURT AFFIRMED.