On June 8, 2023, the First Department issued a decision in Crestview SPV, LLC v. Crestview Fin., LLC, 2023 NY Slip Op. 03070, holding that a conversion claim should be dismissed as duplicative of a breach of contract claim, explaining:
The dismissal of the conversion claim was likewise proper because the cause of action is predicated on a mere breach of contract, and no independent facts are alleged giving rise to tort liability. But for the Financial Asset Purchase Agreement and the Servicing Agreement, there was nothing wrongful about defendant’s exercise of dominion and control over the proceeds of the accounts receivable. Thus, plaintiff has failed to plead wrongful or criminal behavior, as distinguished from acts that are a mere violation of contractual rights, sufficient to support the conversion cause of action.
(Internal quotations and citations omitted).