Dist. Ct. did not err in granting plaintiff’s motion for summary judgment in action alleging that: (1) defendant-entity breached contract with plaintiff by redirecting to entity’s employees and others funds belonging to plaintiff that entity had collected on behalf of plaintiff who performed medical services in joint medical center; and (2) defendant-principal of entity committed theft and conversion of said funds by instructing third-party to redirect said funds. Record showed that principal told third-party to “help manage the cash” to alleviate entity’s cash flow problems, and principal conceded that third-party, who accomplished said transfers, was his agent. Ct. further rejected principal’s claim that plaintiff did not have ownership interest in funds that had been initially segregated for later distribution to plaintiff, where Ct. noted that applicable agreement entitled plaintiff to specific funds that defendant had collected for services rendered at medical center. Fact that plaintiff had conceded that defendant could grant security interest in said funds to others did not constitute concession that plaintiff did not have ownership interest in said funds. Also, plaintiff could proceed against principal on both contract and tort claims, where tort claims that stemmed from common law were independent from contract claims.
Federal 7th Circuit Court
Civil Court
Contracts