West v. Fudge

Dist. Ct. did not err in granting defendant HUD’s motion for summary judgment in conversion action by plaintiffs-former managers of condemned housing development seeking $2.7 million reserve fund held by defendant for use in maintaining said condemned property. In order to have tortious conversion of property claim, plaintiffs must first establish that money in reserve fund is its property, and plaintiff failed to establish ownership of said fund, where contracts between plaintiffs and defendant did not address ownership of fund after plaintiffs no longer operated housing development, and where possibilities of ownership of fund included plaintiffs, City of Joliet that condemned property, U.S. Treasury and/or tenants. Fact that plaintiff gave defendant security in whatever property interest they possessed in fund, or that plaintiffs treated additions to fund as taxable income did not require different result.