Opinion ID: 780673
Heading Depth: 2
Heading Rank: 2

Heading: Conversion of the Cause of Action

Text: 30 We similarly conclude that Kasdan did not convert World Savings' rights in the chose-in-action by successfully litigating the Emerys' claims. In so holding we again assume, without deciding, that this chose-in-action was the type of property interest which can be converted. 31 World Savings did not have exclusive rights to litigate. Paragraph Eighteen merely indicates that World Savings may, at its option pursue legal action. Nothing suggests that the Emerys are divested of the right to pursue legal action if World Savings did not exercise that option. Such a conclusion would be absurd. Preventing the Emerys from recovering the very monies which could be used to repay amounts owe[d] to World Savings frustrates the purpose of Paragraph Eighteen. 32 We conclude, therefore, that the Emerys retained the right to litigate, conditional on World Savings' right to intervene. To be sure, World Savings was deprived of the opportunity to intervene because the Emerys failed to alert World Savings to the underlying litigation. That conclusion may support a breach of contract claim against the Emerys, but does not support World Savings' conversion claim: Kasdan's actions in creating the very settlement that World Savings now covets were entirely consistent with World Savings' rights to retain settlement proceeds up to the amount owe[d] by the Emerys. Because Kasdan's successful litigation efforts were consistent with World Savings' limited property interest, there was no conversion. Weiss, 51 Cal.App.3d at 599, 124 Cal.Rptr. 297 (tort of conversion requires action inconsistent with rights in the property). World Savings' true complaint relates to Kasdan's disbursement of the settlement proceeds to the Emerys, but we have concluded that no injury resulted from that action.