Don't Bet the Business

The Michigan Court of Appeals, in Windrush, Inc v Vanpopering, Case No. 315958 (June 19, 2014), concluded that a plaintiff can maintain an action for statutory conversion stemming from a defendant’s alleged violation of the Michigan Builders’ Trust Fund Act (MBTFA). 

The appellate court observed that nothing in the MBTFA indicates a legislative attempt to fashion an exclusive remedy for a trust fund violation, quite the contrary.

Similarly, when drafting MCL 600.2919a, the Michigan Legislature provided that a statutory conversion claim can be made “in addition to any other right or remedy” provided by law or otherwise.

Therefore, while claims for the conversion of money – as would be the case when combining a claim under MBTFA with §2919a – are often difficult to prove given the unique evidentiary hurdles §2919a mandates, the Windrush decision makes clear such a claim is wholly permitted and is in keeping with the remedial provisions of the MBTFA.