## Facts

- Kittie T. Owens maintained a Christmas Club account at Andrews Bank & Trust Company.
- Under the plan, the bank transferred $20 weekly from a joint account Owens held with her husband into Owens’s Christmas Club account; the husband was not an owner of the Christmas Club account.
- $879 was deposited into the Christmas Club account.
- On the plan’s closing date, the bank closed Christmas Club accounts and prepared a check payable to Owens for her balance, routed to the Georgetown branch for delivery.
- The check was not delivered when other checks were delivered; Owens testified she never received it, and bank records reflected it was never presented for payment.
- The branch manager admitted he withheld delivery to pressure Owens’s husband to pay his personal debt to the bank; Owens testified she was told her funds would be applied to her husband’s obligation.
- Evidence showed the bank treated the amount due Owens as a liability and that Christmas Club deposits were commingled with the bank’s general deposit funds.

## Issues

1. Whether a bank’s deliberate withholding of payment on a depositor’s commingled general-deposit account can constitute conversion.
2. Whether punitive damages are available where a bank withholds a depositor’s funds to coerce payment of another person’s debt.

## Decision

- The Supreme Court of South Carolina affirmed.
- The court held the bank’s intentional retention and refusal to deliver Owens’s Christmas Club funds constituted conversion despite commingling of deposits.
- The court upheld the directed verdict awarding Owens $879 in actual damages.
- The court upheld the jury’s award of $4,121 in punitive damages based on evidence of willful, coercive misconduct.

## Legal Principles

- Conversion is an unauthorized exercise of dominion over another’s personal property that excludes or is inconsistent with the owner’s rights.
- Commingling of deposits and the general debtor–creditor characterization of bank accounts do not bar a conversion claim where the bank intentionally withholds payment the depositor is entitled to receive.
- Punitive damages may be awarded for conversion when the defendant’s conduct is willful, wanton, or in reckless disregard of the plaintiff’s rights.
- A bank’s use of a depositor’s funds as leverage to collect an unrelated debt, especially a debt owed by someone other than the depositor, can support punitive damages.

## Conclusion

The court treated the bank’s purposeful withholding of Owens’s matured Christmas Club payment to pressure her husband’s separate debt as conversion, and it affirmed both actual damages for the withheld funds and punitive damages for the bank’s willful misconduct.


Owens v. Andrews Bank & Tr. Co., 265 S.C. 490, 220 S.E.2d 116 (S.C. 1975)