Shawbeth, Inc. v. Diversified Funding CA2/7
Shawbeth, Inc. appeals from the judgment entered against it after a court trial on its cause of action for conversion and request for imposition of a constructive trust. Shawbeth sued Diversified Funding, Inc. and Oralabs, Inc. (collectively, Diversified) to recover $420,595 Shawbeth had put into an escrow account but never got back. Shawbeth alleged that, after it deposited the funds into escrow, the escrow agent, Karen Gardner at First National Escrow (FNE), transferred the funds first to a different escrow account and then to Diversified, all without Shawbeth’s authorization or consent. The trial court found that, because Shawbeth did not meet its burden of proving that Diversified owned or possessed property of Shawbeth, Shawbeth’s conversion and constructive trust causes of action failed. Because the evidence does not compel a finding in favor of Shawbeth as a matter of law, we affirm.
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