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The Michigan Supreme Court Clarifies The Confusing Theory Of Conversion

Hertz Schram attorneys Deborah Lapin and Matthew Turchyn recently obtained a favorable opinion on behalf of Ocwen Loan Servicing, LLC in the Michigan Court of Appeals in Sutter v Ocwen Loan Servicing, LLC, Case No. 320704 (April 21, 2015). The issue before the Court of Appeals was whether Ocwen converted a $16,860.68 property insurance check when it was a named payee on the check but did not attempt to cash, endorse or negotiate the check. The trial court found that Ocwen converted the check pursuant to MCL 600.2919a(1), Michigan's statutory conversion statute, because it was not entitled to the check as it did not have an insurable interest in the property. The trial court awarded the plaintiffs treble damages and attorney fees upon finding that Ocwen statutorily converted the check pursuant to MCL 600.2919a(1).

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