The plaintiff corporation sued multiple defendants, including a lawyer who held sale proceeds in trust, alleging breach of trust and conversion arising from the sale of a motor vehicle.
The plaintiff argued the lawyer became a constructive trustee through knowing assistance or willful blindness when he released escrow funds on the direction of the plaintiff’s alleged agent.
The court found the plaintiff’s directing mind had authorized the agent to handle the sale and related arrangements, including the handling of proceeds through counsel.
There was no evidence the lawyer had actual knowledge, recklessness, or willful blindness to any wrongdoing, and the funds were handled in accordance with the agent’s instructions.
As a result, neither constructive trust nor conversion was established.
