Fiorenti v. Central Emergency Physicians, PLLC

• Decision Date: 12 May 2003
• Parties: SALVATORE FIORENTI et al., Respondents,<BR>v.<BR>CENTRAL EMERGENCY PHYSICIANS, PLLC, et al., Appellants.
• Court: New York Supreme Court — Appellate Division

305 A.D.2d 453

762 N.Y.S.2d 402

SALVATORE FIORENTI et al., Respondents,

v.CENTRAL EMERGENCY PHYSICIANS, PLLC, et al., Appellants.

Decided May 12, 2003.

Santucci, J.P., Luciano, Townes and Rivera, JJ., concur.

Ordered that the interlocutory judgment entered May 28, 2002, is reversed insofar as appealed from, on the law, without costs or disbursements, and the cause of action alleging conversion is dismissed; and it is further,

Ordered that the appeal from so much of the order entered December 2, 2002, as, upon reargument, adhered to the determination made in the interlocutory judgment in favor of the plaintiffs and against the defendants on the issue of liability on the cause of action alleging conversion is dismissed as academic, without costs or disbursements; and it is further,

Ordered that the appeal from so much of the order entered December 2, 2002, as purportedly denied that branch of the defendants' motion which was for leave to renew the motion to dismiss the complaint, is dismissed, without costs or disbursements, as that branch of the motion remains pending and undecided (see Katz v Katz, 68 AD2d 536 [1979]).

The plaintiffs commenced this action contending, inter alia, that they were not paid bonuses due them pursuant to employment agreements with the defendant Central Emergency Physicians, PLLC (hereinafter CEP). In the complaint, they asserted causes of action alleging breach of contract, violation of the Labor Law, and conversion. After the parties submitted the controversy to the Supreme Court on stipulated facts, the court determined, inter alia, that the defendants were liable to the plaintiffs for conversion, since the defendant Theodore F. Packy was paid additional compensation for administrative hours beyond that which was contemplated by the employment agreements, thereby reducing the net practice revenues of CEP. Since the employment agreements provided that the net practice revenues were to be used in the formula for determining the plaintiffs' bonuses, the Supreme Court concluded that, by paying additional compensation to Packy, the defendants converted a portion of a specific fund to which the plaintiffs were entitled. Thereafter, the Supreme Court granted the defendants' motion for leave to reargue, but adhered to its determination that the defendants were liable to the plaintiffs for conversion.

"The rule is clear that, to establish a cause of action in conversion, the plaintiff must show legal ownership or an immediate...