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National Center for Crisis Management, Inc., et al., Respondents, v. Maria Lerner, Appellant

New York Supreme Court, Appellate Division2012-01-31
91 A.D.3d 920938 N.Y.S.2d 138

Summary

Holding. The court denied the defendant's motion for summary judgment because the plaintiffs established triable issues of material fact regarding whether materials were returned, whether the defendant had authority to destroy documents, and whether she participated in unauthorized check drafting that constituted conversion.

A healthcare corporation network sued a former bookkeeper and executive director for conversion, alleging she wrongfully withheld documents, computer programs, and financial materials after her employment ended, destroyed materials without authorization, and drafted checks in unauthorized amounts. The defendant moved for summary judgment, arguing she had returned all materials, was authorized to discard certain documents, and lacked check-signing authority so could not have converted funds. The court found genuine disputes of fact existed because the plaintiffs contradicted the defendant's claims, asserting materials were never returned despite requests, the defendant lacked authority to discard items, and she had drafted unauthorized checks that her husband (also a corporate principal) signed. The court also rejected a DVD the defendant submitted as evidence because it could not be verified as accurate.

Summary generated by law.co from the public-domain opinion. The opinion text itself is public domain.

Key issues

  • Whether a former employee's retention of corporate documents and materials constitutes conversion
  • Whether authorization existed for destruction of corporate materials
  • Whether drafting unauthorized checks in violation of company policy constitutes conversion
  • Evidentiary standards for video recordings offered as summary judgment support

Procedural posture

The defendant appealed from the Supreme Court's denial of her motion for summary judgment dismissing the conversion complaint.

Authorities cited

No cited authorities resolved to law.co cases yet.

Opinion

majority opinion

“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” (Cusack v American Defense Sys., Inc., 86 AD3d 586, 587 [2011]; see Messiah’s Covenant Community Church v Weinbaum, 74 AD3d 916, 919 [2010]). “ ‘Tangible personal property or specific money must be involved’ ” (Batsidis v Batsidis, 9 AD3d 342, 343 [2004], quoting Independence Discount Corp. v Bressner, 47 AD2d 756, 757 [1975]; see Wallkill Med. Dev., LLC v Sweet Constructors, LLC, 83 AD3d 695, 696 [2011]).

Here, the plaintiffs, a network of corporations engaged in the health care industry, commenced an action sounding in conversion against the defendant, an individual formerly employed by them as a bookkeeper and executive director. They alleged, inter alia, that they sustained damages as a result of the defendant failing to return certain documents, computer programs, and other financial materials which she has intentionally withheld in her possession since her employment ended in April 2008. They further alleged that while employed, she destroyed certain material without authority and, additionally, that she knowingly drafted checks in her name over and above authorized amounts and, thus, wrongfully converted an undetermined sum of money from the plaintiffs’ corporate bank accounts.

The defendant satisfied her prima facie burden of establishing her entitlement to judgment as a matter of law dismissing the complaint. In the defendant’s deposition testimony and affidavits submitted in support of her motion, she stated that she had returned materials belonging to the plaintiffs, that she was authorized to discard certain material after inputting the information derived therefrom onto the plaintiffs’ computer, and, that despite being authorized to draft checks in her own name, she could not have converted money from the plaintiffs’ accounts since she never signed any checks as she lacked the authority to do so. In response, however, the plaintiffs raised triable issues of fact. The plaintiffs disputed that the materials were ever returned, despite requests for the defendant to do so. The plaintiffs further contended that, contrary to the defendant’s affirmation, she was not authorized to discard certain material belonging to the plaintiffs, and further, that despite the defendant’s lack of check-signing authority, she nevertheless drafted checks over and above amounts authorized and submitted them to her husband, who signed them. Her husband had been another principal for the plaintiffs prior to his resignation, which also occurred in April 2008.

Additionally, the Supreme Court properly declined to consider a DVD recording submitted by the defendant in support of her motion for summary judgment, as it cannot be concluded that the video recording truly and accurately represented what the defendant purported it to show (see Zegarelli v Hughes, 3 NY3d 64, 69 [2004]; see also People v Patterson, 93 NY2d 80, 85 [1999]; cf. People v Byrnes, 33 NY2d 343, 349 [1974]).

Accordingly, the Supreme Court properly denied the defendant’s motion for summary judgment dismissing the complaint (see General Trading Co. v M & R Assoc., 307 AD2d 251, 252 [2003]). Angiolillo, J.E, Florio, Chambers and Hall, JJ., concur.