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This section contains the nature of the case and procedural background.

On January 23, 1991, Munford was admitted to D as an outpatient. She listed Farm Bureau as her insurance carrier and assigned her insurance benefits directly to D. While a patient of D, Munford incurred medical expenses in the amount of $3,836.47. On February 5, 1991, D's submitted a claim to Farm Bureau for Munford's medical expenses. P made partial payment to D in the amount of $3,685.87. P discovered that Munford's insurance coverage had lapsed on December 1, 1990, nearly two months prior to her admission. P then notified D of the mistaken payment and requested a refund. D had no knowledge of the lapse in Munford's coverage until notified by P. D made no misrepresentations to induce payment by P on Munford's behalf. P sued D for a refund. The complaint alleged a mistake of fact as to Munford's insurance coverage and prayed for restitution of the amount paid to D. The trial court granted restitution, and P appealed.

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