Question
Doris worked for the City of Concord as a toll collector. Often when a car passed through her toll booth Doris would take $1 of
Doris worked for the City of Concord as a toll collector. Often when a car passed through her toll booth Doris would take $1 of the $5 toll and place it in her pocket. Over a period of several months, she had pocketed a total of $25,000. Finally, an internal audit revealed what Doris had been doing, and she was arrested for embezzlement.
- Prior to her arrest, Doris had done the following with the $25,000 she had embezzled from the City of Concord:
- She spent $2,000 on an elaborate wine dinner for her family and friends.
- She deposited $10,000 into her non-interest-bearing checking account at Bank. At the time of the deposit, the account contained $5,000 of her own money. One month after the deposit she withdrew $10,000 from the account, reducing the account balance to $5,000. She then lost all of the $10,000 on a weeklong vacation in Las Vegas. Two weeks later, Doris received a gift of $10,000 from her aunt, which she deposited in the checking account, bring the account to its current balance of $15,000.
- She donated $3,000 to the local chapter of the United Way.
- She spent $10,000 to purchase 100 shares of ABC stock, which she gave as a wedding gift to her niece, Sally.
The City of Concord brought suit against Doris, the United Way, and Sally. At trial the City of Concord established the facts listed above. They also established that the ABC stock now has a net value of $50,000.
- What are the City of Concord's rights and remedies against Doris? Discuss.
What are the City of Concord's rights and remedies against the United Way? Discuss.
What are the City of Concord's rights and remedies against Sally? Discuss.
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