Devoted to Corporate Attorneys, Corporate Lawyers, and Corporate Counsel

The following is not meant to be legal advice.

When determining if someone should receive any remedies, first one must look to see if there are legal claims.

For example, in conversion, the liability theory is to see if there is an intentional act by the defendant which causes the destruction of or serious interference with the plaintiff’s chattel.  Embezzlement is an example of conversion.

In embezzlement, the plaintiff may seek an equitable lien on the bank account of the defendant.  Also, when a defendant knowingly uses plaintiff’s money to purchase other property, the court will impose a constructive trust as to a pro rata share, measured by the proportion of the commingled fund comprised of plaintiff’s money, of property purchased with money from the fund. 

An innocent taker of the plaintiff’s property is liable for conversion, even if unaware of the embezzlement.