Chazen

In these two consolidated appeals, we review actions against the same defendants, Centennial Bank (hereafter bank) and California Bancshares, involving closely parallel facts, which were also consolidated in the trial court. The separate plaintiffs, Lawrence J. Chazen (hereafter Chazen) and Dr. Sheldon Brown (hereafter Brown), both appeal from judgments of dismissal entered upon orders sustaining without leave to amend demurrers to their first amended complaints. We reverse the judgment dismissing Brown’s fifth cause of action for conversion and otherwise affirm both judgments of dismissal.

Factual and Procedural Background

Both complaints seek to hold the bank liable for the defalcations of a mortgage loan broker, Robert Cox, and two companies which he controlled, First Capital Finance and Consumer Financial Services (hereafter referred to collectively as Cox). From 1988 through 1994, plaintiffs purchased second mortgages through Cox who agreed to service the loans by collecting payments due and remitting them to plaintiffs. For this purpose, he opened three accounts with the bank which were designated on the bank’s signature card as “payment trust account,” “custodial…