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WILLEY v. RILEY12/20/1995
version against defendants Riley and the law firm.
Plaintiff's argument hinges on his belief that he had a future possessory interest in the Harder settlement check, and, therefore, Riley committed the tort of conversion when he endorsed the check in Willey's name and deposited it in the bank in the law firm's trust account.
The cross-appeal leaves us in the precarious position of analyzing a district court's pretrial partial grant of a motion for summary judgment after the case has been tried to a jury on other issues. See Grefe & Sidney v. Watters, 525 N.W.2d 821, 825-27 (Iowa 1994). At trial, plaintiff Willey prevailed to the extent of $98,189.60 in damages on his breach of contract wage claim and his intentional interference with a prospective contract claim.
Plaintiff now asks for a trial on his earlier conversion claim stating that the "jury likely would have awarded Willey punitive damages" due to Riley's intentional conduct when he endorsed the check in the names of the Harders and Willey. In his briefs, plaintiff does not claim he is entitled to any additional compensatory damages based on the alleged conversion. In fact, the record shows that Riley paid Willey his bonus for his handling of the Harder matter. Other compensation matters were decided by the jury in Willey's wage claim.
With this background, we turn to the district court's ruling on the pretrial motion for summary judgment. The only issue that the court was to resolve was whether there were any genuine issues of material fact in dispute [541 NW2d Page 531]
concerning plaintiffs conversion claim that needed to be resolved by a jury.
We believe the district court correctly held no genuine issue of material fact existed. The court did not err when it granted defendants' motion for summary judgment on plaintiffs conversion claim. The court's rationale is sound and supported by Iowa law.
First, we find Riley had implied authority to sign Willey's name to the $650,000 settlement check. Willey knew that even though his name was listed as a payee on the settlement check, the law firm was the co-payee requested by Willey along with the Harders.
Willey argues the Uniform Commercial Code supports his claim for conversion. Although it is true that " n instrument is converted when . . . it is paid on a forged endorsement," Iowa Code § 554.3419(1)(c) (1989), plaintiff must first prove the endorsement was a forgery. Forgery is a crime defined in Iowa Code section 715A.2. The Uniform Commercial Code states an unauthorized signature means "one made without actual, implied, or apparent authority and includes a forgery." Id. § 554.1201(43). As we believe Riley had implied authority to sign Willey's name on the settlement check, and furthermore that Riley has not been charged with or convicted of the crime of forgery, no conversion exists under the statute cited by Willey.
Second, while we do not condone Riley's acts concerning the handling of the Harder settlement check, we conclude Riley could not have converted a chattel as against Willey that Willey had no right to control prior to probate court approval of attorney fees to be paid from the estate to the law firm. See, e.g., Iowa Code §§ 633.197, 633.198, 633.200 (regarding court authorization of payment of attorney fees from a decedent's estate); Committee on Professional Ethics & Conduct v. Peterson, 524 N.W.2d 176, 179 (Iowa 1994) (sanctioning an attorney for accepting fees from a decedent's estate prior to probate court authorization); Committee on Professional Ethics & Conduct v. Jackson, 492 N.W.2d 430, 433 (Iowa 1992) (same); Matter of Estate of Snapp, 502 N.W.2d 29, 35 (
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