424 S.W.3d 713
Tex. App.2014Background
- Lawyers Title Company appeals a partial grant of summary judgment favoring Cooper and denial of Lawyers Title’s cross-motion; court reverses on three claims and remands.
- Cooper wired $1.8 million to an escrow account controlled by Lawyers Title for Houston Street Property deal; no purchase occurred.
- Funds were diverted to a separate Dallas property (McKinney Property) via Hawk’s office actions, leading to federal wire fraud indictments related to the McKinney transaction.
- Escrow control and responsibility are disputed: Hawk’s fee-attorney office ostensibly held and disbursed funds; Lawyers Title personnel signed some documents but did not control disbursements.
- Trial court found in Cooper’s favor on bailment, conversion, and money had and received; judgment severed those claims from the remainder of the suit.
- Appellate court held genuine issues of material fact preclude summary judgment on the three claims and remanded for further proceedings.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Conversion elements present? | Cooper owns funds; Lawyers Title controlled funds without authorization. | Disbursements were authorized by Hawk’s office; Lawyers Title did not improperly control funds. | Genuine fact issue; summary judgment improper |
| Bailment relationship established? | Delivery to Lawyers Title as bailee; funds held in trust for Cooper. | Escrow arrangement did not create a bailment with Lawyers Title as bailee. | Genuine fact issue; summary judgment improper |
| Money had and received viable? | Lawyers Title held Cooper’s money to Cooper’s benefit; funds belong to Cooper. | Lawyers Title did not hold funds belonging to Cooper; mischaracterization of control. | Genuine fact issue; summary judgment improper |
Key Cases Cited
- Wells Fargo Bank Nw., N.A. v. RPK Capital XVI L.L.C., 360 S.W.3d 691 (Tex. App.—Dallas 2012) (conversion elements and owner control analysis)
- Grand Champion Film Prod., L.L.C. v. Cinemark USA, Inc., 257 S.W.3d 478 (Tex. App.—Dallas 2008) (damages and injury requirements in conversion)
- United Mobile Networks, L.P. v. Deaton, 939 S.W.2d 146 (Tex. 1994) (elements of conversion and standing)
- In re JXNB Internal Case, 483 F.3d 292 (5th Cir. 2007) (federal accounting and trust principles in escrow context)
- Edland v. Bounds, 842 S.W.2d 719 (Tex. App.—Dallas 1992) (escrow and custodial responsibilities)
- AN Collision Org. of Addison, Inc. v. Town of Addison, 310 S.W.3d 191 (Tex. App.—Dallas 2010) (summary-judgment standard and factual disputes)