Cameron Miranda
Conversion is a legal term that refers to the unauthorised possession of personal property that interferes with the owner's rights. It is a civil wrong, as opposed to a criminal act, and is often associated with negligence or misunderstanding. The law of conversion can be demonstrated through various examples, such as the unauthorised taking of an object from a renter, cutting down a tree on someone else's property, or having a car towed from a legal parking spot. In these cases, an individual's property is taken or altered without their consent, causing a detriment to the owner. The law of conversion aims to protect individuals' rights to possess and use their personal property without interference.
| Characteristics | Values |
|---|---|
| Definition | Conversion is a civil tort, or a civil wrong, where one person “converts” another person’s property for themselves. |
| Application | Conversion applies to personal property, which is considered any property that is not real estate or land. |
| Intent | The intent to commit conversion is limited to the intention to take control of the property, regardless of whether the person was aware or acted in good faith. |
| Knowledge | Conversion does not rest on the knowledge or intent of the defendant, but on the intentional act of possession. |
| Permanence | The deprivation of property does not need to be permanent, as long as the plaintiff is deprived of possession for an indefinite time. |
| Negligence | Conversion is often related to negligent behavior, but negligence is not a valid defense in an action for conversion. |
| Authority | Conversion cannot occur if it is done by authority of the law, a court order, or a valid process. |
| Consent | Consent by the plaintiff can be either express or implied. |
| Limitation | Statutes of limitations are defined by legislative jurisdiction, and some cases may be based on "reasonable knowledge". |
| Remedy | The standard remedy for conversion is the return of the property in question or damages for the fair market value of the property. |
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What You'll Learn
Conversion of tangible and intangible property
Conversion is a legal term that describes the civil tort of one person "converting" another person's property for themselves. This can be done either by stealing the property or by acting as if they own the property in question. The key distinction is that conversion is a civil wrong, whereas larceny is a criminal act.
The law of conversion can be demonstrated through the examination of tangible and intangible property. Tangible property refers to physical assets that can be seen, touched, and felt. These include land, buildings, vehicles, furniture, equipment, and inventory. Intangible property, on the other hand, is non-monetary and lacks a physical form, such as patents, copyrights, intellectual property, and digital assets.
In the United States, both tangible and intangible property can be the subject of a claim for conversion. For example, in Kremen v. Cohen, a claim for conversion was held available when the domain name "sex.com" was wrongfully transferred. However, in English law, a contrasting case of OBG Ltd. v. Allan held that intangible property cannot be the subject of a conversion claim.
While monetary assets are generally considered intangible, there are exceptions. For instance, specific segregated or identifiable funds can be claimed for conversion, as seen in the case of Allen v. Gordon. Additionally, unpublished manuscripts, letters, paintings, and other similar items can be the subject of conversion claims.
The distinction between tangible and intangible property is crucial in estate planning. Tangible personal property, such as vehicles, art, and jewellery, can be easily distributed, whereas intangible assets like bank accounts, stocks, and intellectual property require careful consideration and may be more challenging to pass down.
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Real property vs. personal property
Conversion is a tort that allows the injured party to seek legal relief when their personal property has been improperly taken. It is the civil side of larceny, which is the criminal act. Personal property consists of every kind of property that is not real.
Real property, in the narrowest sense, refers to parcels of land and the natural resources it contains, such as soil and minerals. It also includes permanent fixtures like buildings, fences, and utility installations. On the other hand, personal property includes tangible objects like vehicles, furniture, jewellery, and electronics. These items can be easily moved and are subject to frequent changes in ownership.
The law of conversion applies specifically to personal property. Conversion occurs when a person without authority or permission intentionally takes or uses the personal property of another, or withholds it from the rightful owner. It is a tortious act that infringes upon the owner's rights and often results in claims for damages.
In the context of real estate, conversion has a different connotation. It refers to a legal process that changes a property's designated use without physically altering it. For example, repurposing an industrial site into residential units would be considered a form of conversion in real estate. While real estate professionals can face legal repercussions for misappropriating client funds or property rights, it is important to note that land itself cannot be converted or "stolen" through possession.
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Intent and negligence
Conversion is a civil wrong, or tort, that involves the improper taking of non-real property from another without due authority. It is the civil equivalent of larceny, which is a criminal act. Conversion can be accidental, but it can also be intentional.
Intentional torts are committed with the specific purpose of causing harm or injury to another person or their property. They may or may not be criminal, but they are always civil wrongs. Intentional acts can include crimes such as assault, battery, trespassing, vandalism, and theft.
Negligence, on the other hand, is a failure to act or a breach of duty. It is an accidental tort, which occurs when a reasonable person would have done something to prevent harm, but the person liable for the harm failed to do so. Negligence can occur unintentionally, such as through carelessness or inattention. For example, a business that fails to clean up a spill and causes a fall can be found negligent.
In the context of conversion, negligence would be demonstrated when there is a lack of intent to take or use someone else's property. For example, if someone accidentally sells someone else's property at a garage sale, thinking it was their own. However, it is important to note that negligence does not constitute a defence in an action for conversion. This is because conversion does not rest on the knowledge or intent of the defendant. Instead, the act constituting "conversion" must be an intentional act, but it does not require wrongful intent.
Therefore, the law of conversion can be demonstrated with negligence by showing that the defendant intentionally took possession of the property, regardless of whether they knew they had no right to do so or whether they intended to cause harm.
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Defences against conversion
Consent or Approval of the Plaintiff
Consent is an absolute defence against conversion. If the rightful owner gave permission to the defendant to use or possess the property, and the defendant acted within the boundaries of that consent, there is no conversion. The consent must be given voluntarily and without any coercion or undue influence.
Authority of Law
The defendant may assert that they have the legal right to convert the property in accordance with a court order, judgment, or statutory authority. For example, certain statutes may grant privilege to certain parties, such as storage facilities, to seize stored property under specific circumstances.
Statute of Limitations
Each state has a statute of limitations that sets a time limit on filing a lawsuit for conversion. If the plaintiff fails to initiate legal action within the specified period, the defendant can assert that the statute of limitations has expired, barring the plaintiff from bringing charges or a civil claim. The statute of limitations period varies by state and typically ranges from two to six years.
Lack of Intent
In certain jurisdictions, conversion is considered an intentional tort, meaning the plaintiff must prove the defendant's intent to commit the act. If the defendant can demonstrate that they acted in good faith, without wrongful intent, or under a mistaken belief regarding their rights, it may serve as a defence against conversion. However, this defence may not apply in all jurisdictions or cases, especially if the defendant intended to assert a right to the property.
Lack of Damages
Damages are an essential element of a conversion claim. If the plaintiff has not suffered any harm or loss as a result of the alleged conversion, they may not have a valid case. The plaintiff must demonstrate the value of the property at the time of conversion, and the court may award damages or other remedies based on that value.
Acceptance of Return of Goods
If the owner accepts the return of the converted property, they may be precluded from taking further legal action. However, the plaintiff is not obligated to accept the return of the property, and they may still seek damages or other remedies provided by law.
It is important to note that defences to conversion may vary based on the specific facts of each case and the applicable state laws. Consulting with an experienced attorney who can provide guidance tailored to your specific circumstances is always recommended.
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Remedies for conversion
Conversion is the deprivation of another's right to use or possess personal property. It is an intentional tort and a civil wrong, as opposed to theft, which is a criminal act. The law of conversion is demonstrated when a person without authority or permission intentionally takes personal property from another or deprives another of its possession.
- Monetary compensation: Courts may award damages equivalent to the property's value, any expenses incurred due to the conversion, and, in some cases, punitive damages.
- Return of property: If the property is still available, the court may order its return instead of awarding financial compensation.
- Injunctive relief: Courts may issue orders preventing further misuse or disposal of the converted property.
- Special damages: Special damages may be recovered for any injury proximately resulting from the conversion, including the additional value of a chattel due to additions or improvements made by the converter not in good faith.
- Detinue: The complainant can claim a related tort, detinue, if they want the chattel returned without any additional monetary damages.
The specific remedies available may vary depending on the jurisdiction and the specific circumstances of the case. It is important to note that the use of force or violence is not permitted in the recovery of chattels, and legal remedies should be sought instead.
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Frequently asked questions
Conversion is a legal term that describes a civil tort, or a civil wrong, where one person "converts" another person's property for themselves, or acts as if they own something that belongs to someone else. This can be done intentionally or accidentally.
Conversion can occur when a neighbour cuts down your tree and turns it into lumber and firewood. It can also happen when a car is towed even though it was legally parked, or when a bank repossesses a car on false pretenses.
The standard remedy for conversion is the return of the property in question or damages for the fair market value of the property.
