Colonial Funding, L.L.C. v. American Empire Surplus Lines Insurance

Plaintiff, Colonial Funding, L.L.C. (Colonial), appeals from the dismissal with prejudice of its verified complaint for conversion of insurance proceeds. For the reasons that follow, we affirm.

The following facts are relevant to this appeal.

On June 6, 1994, Colonial entered into a factoring agreement with Chemicals Trading, Inc. (Chemicals Trading). Pursuant to the agreement, Colonial held a first priority security interest in all of Chemicals Trading’s inventory and equipment, including any proceeds or products thereof. Colonial filed the necessary Uniform Commercial Code (810 ILCS 5/1 — 101…