On November 10, 2021, Justice Reed of the New York County Commercial Division issued a decision in Cortlandt St. Recovery Corp. v. Bonderman, 2021 NY Slip Op. 51063(U), holding that a conversion claim cannot be based on the mere right to payment of money, explaining:
Defendants argue that WTC’s conversion claim is insufficient because it merely asserts a right to payment of unidentified assets or money to satisfy its judgment.
A conversion takes place when someone, intentionally and without authority, assumes or exercises control over personal property belonging to someone else, interfering with that person’s right of possession. It is well settled that when a conversion claim is asserted with respect to money, the funds must be specifically identifiable and be subject to an obligation to be returned or to be otherwise treated in a particular manner. Here, the amended complaint fails to state a cause of action for conversion. As argued by defendants, the amended complaint alleges that WTC is entitled to a turnover of real and personal property with a value of, or to otherwise receive payment of a sum of money totaling $717,000,000. But the mere right to payment cannot be the basis for a cause of action alleging conversion; the essence of such a cause of action is the unauthorized dominion over the thing in question. To the degree that WTC relies on a flow of funds document created in the bankruptcy proceeding, WTC fails to allege that any funds are in a segregated account such that they are specifically identifiable. Therefore, the tenth cause of action is dismissed.
(Internal quotations and citations omitted).