Fong

Plaintiff Oakdale Village Group (Oakdale), a partnership, sued defendant Daniel Fong, Oakdale’s escrow company, and a title company alleging conversion and conspiracy in the purchase of a note, and requesting imposition of a constructive trust. In a previous decision we affirmed the trial court’s grant of summary judgment in favor of the title company. Following a court trial, the court found in favor of Fong, finding no conversion in the sale of the note or disbursement of the proceeds. Oakdale appeals, arguing the court erred in finding in favor of Fong on the conversion and money had and received causes of action, and the court erred in failing to impose a constructive trust. We shall reverse the judgment and direct the trial court to enter judgment in favor of Oakdale on the cause of action for conversion.

Factual and Procedural Background

Oakdale is a California general partnership comprised of the following partners: Franklin and Lily Chinn, Florence and Stanley Quon, Kenneth and Sydney Wang, and Group Management, Inc., a California corporation. Oakdale owned a shopping center which was not financially successful.

Kenneth Wang advanced the partnership over…