Navid v. Uiterwyk Corp.
| Decision Date | 03 July 1991 |
| Docket Number | No. 90-995-CIV-T-17C.,90-995-CIV-T-17C. |
| Parties | Backer NAVID, Appellant, v. UITERWYK CORPORATION, Appellee. |
| Court | U.S. District Court — Middle District of Florida |
Sharyn Beth Zuch, Shackleford, Farrior, Stallings & Evans, P.A., Tampa, Fla., for appellant.
Don Mason Stichter, Stichter, Riedel, Blain & Prosser, P.A., Tampa, Fla., for appellee.
This cause is before the Court on an appeal from the Bankruptcy Court's order sustaining the objection of Uiterwyk Corporation, the Debtor, to claim # 1010 filed by Backer Navid and disallowing the claim. The claim is in the amount of $1,150,256 and is based on civil theft and conversion of $383,418.72, plus pre-petition interest and attorneys' fees. The appellant, Backer Navid, alleges that the Bankruptcy Court erred in that the Bankruptcy Court based its order on the theory that Uiterwyk was acting at all times as an agent for a disclosed principal and, as such, was not liable for its own torts of conversion and theft.
This Court's standard of review of the Bankruptcy Court's findings of fact is clearly erroneous. The standard of review of the issues of law is de novo review. Furthermore, the Bankruptcy Court must make all necessary findings of fact. If the Bankruptcy Court is silent or ambiguous as to an outcome determinative fact, then this Court must remand the case back to the Bankruptcy Court for further review. In Re Chase & Sanborn Corp., 904 F.2d 588, 593 (11th Cir.1990).
According to the findings of fact by the Bankruptcy Court, the dispute arose from a shipment of nineteen containers of air-conditioning equipment from New York to Khorramashr, Iran on a motor vessel called the "Margitta". Unfortunately, the Margitta encountered a typhoon and as a result, the air-conditioning equipment was severely damaged.
On June 5, 1978, Navid, the owner of the air-conditioning equipment, sent a written claim to Iran Express Lines, the owner of the Margitta. However, Navid subsequently dealt with Walter A. Rollins, Senior Vice-President of Uiterwyk Corporation, acting as a general agent for Iran Express Lines in the United States. Rollins requested that Navid execute a release in exchange for payment of $383,418.72. Navid complied with the request and signed a release relinquishing any claims he may have against the Margitta, her masters, owners, agents, charters, managers and underwriters from any claim based on the damage to the shipment of air-conditioning equipment.
On February 20, 1980, Rollins acknowledged that Uiterwyk Corporation received a settlement claim for the damage to the cargo on the Margitta in the amount of $386,000. However, Rollins refused to pay Navid, claiming that the money was for the benefit of Uiterwyk Corporation as an agent for Iran Express Lines. Instead, Rollins applied the settlement to a debt which was guaranteed by Uiterwyk Corporation and owed to Grindlay Brandts, Ltd.
Uiterwyk Corporation filed a voluntary petition under Chapter 11 of the Bankruptcy Code on January 27, 1983. Navid filed an amended proof of claim for conversion and civil theft.
"`Conversion is an unauthorized act which deprives another of his property permanently or for an indefinite time.'" National Union Fire Insurance Co. of Pennsylvania v. Carib Aviation, Inc., 759 F.2d 873, 878 (11th Cir.1985) (citing Senfeld v. Bank of Nova Scotia Trust Co. (Cayman), 450 So.2d 1157, 1160-61 (Fla. 3d DCA 1984) (citing Star Fruit Co. v. Eagle Lake Growers, Inc., 160 Fla. 130, 33 So.2d 858 (1948))). The tort of conversion applies to many types of personal property, including money. In an action for conversion of money, the money must be specific money that is capable of identification. Allen v. Gordon, 429 So.2d 369 (Fla. 1st DCA 1983) (referring to Belford Trucking Co. v. Zagar, 243 So.2d 646 (Fla. 4th DCA 1971)). Hence, an action for conversion of money consists of three elements: specific and identifiable money, a deprivation of money belonging to another, and an unauthorized act which deprives another of his money.
Upon Rollins' request, Navid executed a release relinquishing any claims that he may have based on the damage to the cargo shipped on the Margitta. In exchange for this release, Navid was entitled to payment in the amount of $383,418.72. Subsequently, Uiterwyk Corporation received two checks from the insurance carrier, Lowndes Lambert Group, Ltd., for a settlement in the amount of $383,418.72, less a commission of $3,834.18, which is equal to a total amount received of $379,584.54. However, Rollins stated that the money was paid to another creditor, Grindlay Brandts, Ltd., in payment of a debt that was personally guaranteed by Uiterwyk. Hence, the money in dispute was specific money which was capable of identification.
Secondly, the Bankruptcy Court found that Navid never received any payment on his claim for the damaged cargo. Upon signing the release, Navid was entitled to payment of $383,418.72. When the insurance carrier paid the settlement to Uiterwyk and Uiterwyk utilized the money for another purpose, Navid was deprived of his money.
The last issue is whether there was an unauthorized act which deprived Navid of his money. The Bankruptcy Court has determined that Uiterwyk was acting as an agent for a...
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