Commercial Division Blog
Corporate Officer May Be Held Liable for Corporation's Conversion
On October 31, 2018, the Second Department issued a decision in Starr Indem. & Liab. Co. v. Global Warranty Group, LLC, 2018 NY Slip Op. 07346, holding that the plaintiff had sufficiently plead claims to hold corporate officers liable for the corporation's conversion of the plaintiff's property, explaining:
A corporate officer, although acting for the benefit of a corporation, may be held liable for conversion, if he or she participated in the commission of the tort. A claim can exist for aiding and abetting conversion if the aider-abettor has actual knowledge that the person who directly converted the plaintiff's property did not own that property. Here, the complaint adequately stated causes of action alleging conversion and aiding and abetting conversion against Krantz and Schenker.
(Internal citations omitted).
Commercial litigation often involves conversion claims. As this decision shows, if a corporate officer participates in the conversion, the officer may be held liable for aiding and abetting that conversion. Contact Schlam Stone & Dolan partner John Lundin at email@example.com if you or a client have a question regarding one person depriving another of her property, whether that property is tangible or intangible, or even involves a discrete fund of money.