Summary
The Appellate Division, Second Department reviewed an appeal from a trial court order denying summary judgment on a conversion claim brought by MISF, LLC against a former member. The court dismissed the appeals of individual plaintiffs who were not aggrieved by the order and affirmed the denial of summary judgment, holding that MISF failed to establish prima facie that the defendant's wire transfers were unauthorized. Costs were awarded to the defendant.
Topics
Practice areas
Questions Presented
- Whether the trial court properly denied summary judgment on the conversion claim against Sion Sohayegh.
Holdings
- The Appellate Division affirmed the denial of summary judgment, holding that MISF failed to establish a prima facie case that the transfer was unauthorized.
Key quotations
“To establish a cause of action to recover damages for conversion, a plaintiff must show legal ownership or an immediate superior right of possession to a specific identifiable thing and must show that the defendant exercised an unauthorized dominion over the thing in question to the exclusion of the plaintiff's rights”
“A claim of conversion of money is proper when funds designated for a particular purpose are used for an unauthorized purpose”
Factual background
MISF, LLC alleged that its member, Sion Sohayegh, transferred funds from MISF's bank account to the escrow account of Price Law Firm without authorization, constituting conversion. MISF moved for summary judgment on the conversion claim, which the trial court denied.
Procedural history
The Supreme Court, Suffolk County denied MISF's motion for summary judgment on the conversion claim. MISF appealed; the Appellate Division affirmed the denial.