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No. 125994-5
| Echelon Homes, L.L.C., |
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Timothy O. McMahon |
Plaintiff/Counter-Defendant/Appellee, |
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vs (Oakland - Schnelz, G.) |
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Carter Lumber Company, |
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Paul M. Stoychoff |
Defendant/Counter-Plaintiff/Appellant. |
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Click to view briefs in Adobe format:
Defendant/Counter-Plaintiff/Appellant's Application for Leave to Appeal>>
Defendant/Counter-Plaintiff/Appellant's Supplemental Brief>>
Plaintiff/Counter-Defendant/Appellee's Brief in Opposition to Application>>
Plaintiff/Counter-Defendant/Appellee's Supplemental Brief>>
Michigan Bankers Association's Amicus Curiae Brief>>
Background
Plaintiff Echelon Homes, a residential building company, employed Carmella Wood as a secretary, administrative assistant, and bookkeeper. In July of 2000, Echelon discovered that Wood had engaged in a scheme to embezzle money and building materials from Echelon. The scheme included fraudulently obtaining credit accounts with several vendors, including defendant Carter Lumber Company, and then using those accounts for personal construction projects. Echelon fired Wood and reported her to the Michigan State Police. Echelon then discovered that numerous irregularities occurred in the course of Wood's use of the Carter account. Despite these irregularities, Carter did not contact Echelon to verify that the account was being used properly. Echelon sued Carter, claiming in part that Carter converted Echelon's assets and property to its own use. The circuit court granted Carter's motion to dismiss Echelon's complaint, including the statutory-conversion claim, on the basis that Echelon had not produced any evidence to show that Carter had acted intentionally. The Court of Appeals reversed the summary dismissal of Echelon's statutory-conversion claim, reasoning that Carter had constructive knowledge of facts that would have led an honest person to make further inquiries, but that Carter avoided doing so. Carter appeals.
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