Mercantile Exchange Leasing Corp. v. Astor-Broadway Holding Corp.

The deposit, which is the subject of the second cause of action of the complaint, falls within the category of money “ deposited or advanced on a contract for the use or rental of real property as security for performance of the contract” and defendant was obliged, upon receipt of the deposit to hold it in accordance with the mandate of section 233 of the Real Property Law. The commingling of the money deposited with its own funds was a conversion entitling plaintiff to recover the amount of the deposit. Plaintiff’s motion for partial summary judgment on the second cause of action should have…