Change of Position

Definition - What does Change of Position mean?

When a person is left in a worse financial position for relying on an overpayment than the person would have been before relying on an overpayment, the person may protect their assets from recovery under a change of position theory.

Change of position jurisprudence springs from the belief that an individual should not suffer from the mistake of another.

Justipedia explains Change of Position

Tort jurisprudence is rooted in the fundamental concept that a person injured by the action or neglect of another should be compensated by the person liable for the action or neglect. Change of position reflects this concept when it comes to overpayments.

A classic example when change of position arises is when an employee receives an overpayment from an employee and then uses that overpayment to purchase something like a house. When the employer tries to recover the overpayment, the employee may rely on change of position to prevent themselves from being required to repay the money.

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