794 F. Supp. 2d 735
W.D. Ky.2011Background
- CTB loaned funds to Timothy P. Smith’s mining companies, taking security interests in mining equipment as collateral.
- The Smiths allegedly defaulted and the collateral, including the Shields, was sold without CTB’s authorization.
- Madison Capital later acquired CTB’s secured position and filed suit in 2008 against River Metals and S&S Salvage for conversion and trespass.
- The court’s January 19, 2011 order granted summary judgment to Defendants on all but trespass and wrongful withholding; Madison sought reconsideration.
- The court’s decision focuses on whether the conversion claim is time‑barred and whether the trespass/wrongful withholding claims are timely.
- The court sua sponte addresses whether the wrongful withholding claim is governed by the same two‑year limitations as conversion, and concludes all such claims are time‑barred.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Is Madison’s conversion claim time‑barred? | Madison asserts there is a dispute about CTB’s knowledge of missing shields and renewal of the claim. | Defendants argue the two‑year statute of limitations bars conversion claims once CTB knew assets were missing prior to Madison’s assignment. | Conversion claim barred by statute of limitations. |
| Should trespass and wrongful withholding be considered under conversion limitations for timeliness? | Plaintiff contends trespass/wrongful withholding have separate five‑year limits and are timely. | Defendants argue these claims are barred by the two‑year limit for conversion under K.R.S. § 413.125. | Trespass and wrongful withholding are barred; the claims are treated as converted to the conversion framework for timing. |
| What is the controlling statute of limitations for the wrongful withholding claim tied to the same injury as conversion? | Wrongful withholding may be governed by a five‑year limit under § 413.120(5). | Because the wrongful withholding springs from the same injury as conversion, § 413.125’s two‑year limit applies. | Wrongful withholding is barred as it arises from the conversion injury; two‑year limit applies. |
Key Cases Cited
- Lashlee v. Sumner, 570 F.2d 107 (6th Cir. 1978) (specific enumerated torts govern their own limitations; conversion treated specially)
- Branham v. Micro Computer Analysts, 350 F. App’x 35 (6th Cir. 2009) (invasion of privacy leaves the same limitations as libel/slander when springing from same act)
- Grand Rapids Plastics, Inc. v. Lakian, 188 F.3d 401 (6th Cir. 1999) (courts may grant sua sponte summary judgment on limitations if party had notice)