A. [§ 3.18] Proper Subject of Claim

• Jurisdiction: Maryland

A. [§ 3.18] Proper Subject of Claim

"As a general rule, money, i.e., currency, is not subject to a claim of conversion unless the plaintiff seeks to recover specific segregated or identifiable funds." Darcars Motors of Silver Spring, Inc. v. Borzym, 379 Md. 249, 259 n.3, 841 A.2d 828, 834 n.3 (2004) ; Roman v. Sage Title Grp., LLC, 229 Md. App. 601, 618, 146 A.3d 479, 488 (2014) (stating that the court will not bar a conversion claim simply because funds were located in a single escrow account, without looking at the purpose of the account, the duties of the account holder, and whether the funds were sufficiently specific, separate, and identifiable), aff'd, 455 Md. 188, 166 A.3d 1026 (2017).

The point was reiterated by Judge Blake in Bahari v. Countrywide Home Loans, No. CIV. CCB-05-2085, 2005 WL 3505604, at *5 (D. Md. Dec. 16, 2005) ("In Maryland, 'money, i.e., currency, is not subject to a claim of conversion unless the plaintiff seeks to recover specific segregated or identifiable funds.'" (citing Darcars Motors, 379 Md. at 259 n.3, 841 A.2d at 834 n.3)). Judge Blake continued, "Further, in order for a conversion claim to succeed, the Baharis must show that the transferred money has not been commingled with other funds. Indeed, when funds are commingled, 'the cash loses its specificity.'" Id. (citing Allied Inv. Corp. v. Jasen, 354 Md. 547, 731 A.2d 957, 967 (1999)).

U.S. District Judge Bennett dealt with the issue of money subject to a claim of conversion in Arkansas Nursing Home Acquisition, LLC v. CFG Cmty. Bank, 460 F. Supp. 3d 621, 631 (D. Md. 2020), where the plaintiffs sought to recover losses from a failed nursing home...