Fischer v. Machado

In Fischer v. Machado (1996) 50 Cal.App.4th 1069, liability for conversion was held proper, where two agents had failed to turn over a definite sum to their principals, after it was received for the principals' account. The agent-defendant had received certain proceeds from the sale of plaintiffs' (the principals') consigned farm products, then commingled the funds with the defendants' general corporate account, and thus claimed the money was no longer identifiable or subject to the plaintiffs' dominion and control. The appellate court rejected the contention by the defendants that they could not have converted such proceeds, because "as an agent, defendants had the obligation to turn over the definite sum received by it on plaintiffs' account." (Id. at p. 1074.) Those plaintiffs had established the defendants' actual interference with their ownership or right of possession of the readily identified proceeds, and could recover them. (Ibid.)