On April 22, 2022, Justice Masley of the New York County Commercial Division issued a decision in Crestview SPV, LLC v. Crestview Fin., LLC., 2022 NY Slip Op. 31354(U), holding that a conversion claim cannot be based on a breach of contract, explaining:
Conversion is the unauthorized assumption and control over goods belonging to another at the expense of the true owner’s rights. The property allegedly converted must be identifiable. A conversion claim cannot be predicated on a breach of contract claim. There must be independent facts to allege tort liability. Plaintiff’s conversion claim is dismissed because it is based on the same factual allegations as the breach of contract claim and same contractual duty. Further, plaintiff failed to identify a specific fund.
(Internal citations omitted).