Conversion

A.

Definition Conversion is interference with another’s property that is so substantial that the original possessor loses title to the property and is entitled to full compensation.

Examples of conversions:
1.
Improper possession (e.g., theft, embezzlement, fraud),

2.
Improper transfer of chattels (e.g., improper delivery, selling of stolen goods),

3.
Improper retention of chattels (e.g., refusal to return to rightful owner),

4.
Improper destruction or damaging of goods,

5.
Improper use (e.g., use without permission).

B.

Intent One must only intend to do the act that is adverse to another’s right to possess the chattel. One does not have to intend harm.

C.

Property Subject to Conversion All tangible personal property and any physical documents that represent intangible property are subject to conversion.

D.

Factors Considered
1.
Dominion
One’s degree of control over the chattel.

2.
Good Faith
An innocent mistake may prevent liability.

3.
Harm
The amount of damage done to the chattel.

4.
Inconvenience The amount of inconvenience and expense caused the owner.

E.

Damages One whose property has been converted is entitled to the full value of the lost property. Exception: Replevin