The Fourth Circuit recently issued a published opinion in Dale v. Peoples Bank Corp. addressing a question that arises whenever creditors pursue bank accounts to satisfy a judgment: can a bank be sued for conversion when it turns over funds pursuant to state judgment-enforcement procedures? The court’s answer was a clear no.
In JSmith v. Clancy & Theys, Judge Joseph Callaway addressed a familiar temptation in bankruptcy litigation: trying to convert an ordinary contract dispute into a turnover action under 11 U.S.C. § 542. The court allowed most of the debtor’s claims to proceed—but drew a clear line around turnover.
In Israel v. Zachary, the North Carolina Court of Appeals affirmed that a landlord who interferes with a tenant’s efforts to retrieve property after eviction can be liable for conversionand unjust enrichment, though the court vacated the damages award for lack of sufficient valuation evidence.
