On Wire Fraud, Quasi-Contract, and Summary Judgment

Gary Cooper thought he was dealing with an authorized representative of Lawyers Title Company when he deposited $1.8 million in escrow for the purchase of property in Fort Worth. In reality, Jason Chumley was an independent contractor working for an attorney for Lawyers Title. But the Fort Worth project never developed, and Chumley and two of Cooper’s business associates instead applied the money to pay off four liens on a McKinney Avenue property in Dallas. That transaction led to federal indictments for wire fraud, as well as a lawsuit by Cooper against numerous parties in an effort to recover the $1.8 million. The trial court granted summary judgment for Cooper on his claims for bailment, conversion, and money had and received, while denying Lawyers Title’s cross-motion. Those claims were then severed from the rest of the case, thereby enabling an immediate appeal. The case turned largely on whether Lawyers Title had ever received Cooper’s funds, as they had been wired to an account maintained by the title company’s attorney. There was conflicting evidence on whether Lawyers Title actually controlled that account, which was a genuine issue of material fact and required reversal of summary judgment on all three quasi-contract claims.

Lawyers Title Co. v. J.G. Cooper Dev,, Inc., No. 05-11-01537-CV