The plaintiff moved for summary judgment seeking payment of fees owed under an agreement requiring the corporate defendant to hold tax refund proceeds in trust and remit a percentage to the plaintiff.
The corporate director signed the agreement and later acknowledged the debt but failed to remit the funds.
The court held that the agreement created a trust over the tax refunds and that the corporation breached that trust by retaining the funds.
Applying constructive trustee principles, the court found the director personally liable because she knew of the trust, controlled the funds, and knowingly participated in the breach.
Summary judgment was granted against both defendants.
