CONVERSION

Topic of the day

- Definition of conversion

- Elements of conversion

- The defences of conversion

- The remedies for conversion

- Difference between conversion and trespass

DEFINITION OF CONVERSION

Conversion is the wrongful interference with another person's chattel (movable property) that results in the deprivation of the owner's right to possess or use the property. 

ELEMENTS OF CONVERSION

1. Interference with Property: Conversion involves some form of interference with the property, such as taking, using, or destroying it without the owner's consent. See the case of Armory v Delamirie (1722) where it was established that any intentional interference with another's property rights can constitute conversion.

2. Intent: Generally, the defendant must intend to exercise dominion or control over the property, knowing that it belongs to another person. See the case of Trover v Brown (1703) where the court held that a finder of lost property who appropriates it for their own use is liable for conversion because they intended to deprive the true owner of their rights.

3. Damages: The plaintiff must suffer some form of harm or loss as a result of the defendant's interference with their property. Damages may include the value of the property, loss of use, or other consequential damages.

4. Statutory Provisions: Some jurisdictions have specific statutes that govern conversion, outlining the elements of the offense and the available remedies. See Section 2-403 of the Uniform Commercial Code (UCC) in the United States that addresses conversion in the context of sales of goods.

THE DEFENCES OF CONVERSION

Defenses to conversion typically revolve around justifying the defendant's actions or showing that the plaintiff's claim lacks merit. Here are some common defenses below;

1. Consent: If the owner of the property consents to the defendant's actions, it can serve as a defense against a claim of conversion. For example, if the owner authorizes someone to borrow their car, they cannot later claim conversion unless the use exceeds the scope of the consent.

2. Legal Authority: If the defendant has a legal right or authority to take the property, it may constitute a defense. This could include actions taken by law enforcement officers in the course of their duties or actions authorized by a court order.

3. Necessity: In certain circumstances, the defense of necessity may apply if the defendant's actions were necessary to prevent a greater harm. For example, if someone takes shelter in another person's house during a storm to avoid injury, they may have a defense of necessity against a claim of conversion.

4. Ownership or Rightful Possession: If the defendant can demonstrate that they have a valid claim of ownership or rightful possession over the property, it can serve as a defense against a claim of conversion. This could include situations where the defendant mistakenly believes they own the property or where they have a superior claim of ownership.

5. Good Faith Purchase: In some jurisdictions, a defendant who purchases stolen property in good faith and without knowledge of its stolen status may have a defense against a claim of conversion. This defense is often governed by specific statutory provisions, such as Section 2-403 of the Uniform Commercial Code.

THE REMEDIES FOR CONVERSION

The remedies available for conversion aim to compensate the owner for the wrongful deprivation of their property rights. Here are some common remedies below;

1. Damages: The most common remedy for conversion is monetary damages, which aim to compensate the plaintiff for the value of the property that was wrongfully converted. This can include the fair market value of the property at the time of conversion, any consequential damages resulting from the conversion, and potentially punitive damages in cases of egregious conduct.

2. Replevin: Replevin is a legal action that allows the plaintiff to recover possession of the wrongfully converted property. If successful, the plaintiff can regain possession of the property without having to wait for a final judgment on the merits of the case.

3. Rescission: Rescission involves undoing the wrongful conversion by restoring the plaintiff to their original position before the conversion occurred. This remedy is less common in conversion cases but may be applicable in certain circumstances.

4. Injunctive Relief: In some cases, the plaintiff may seek injunctive relief to prevent further interference with their property rights. An injunction may prohibit the defendant from taking any further action that would result in the conversion of the plaintiff's property.

5. Accounting of Profits: If the defendant has profited from the conversion of the plaintiff's property, the plaintiff may be entitled to recover those profits as part of their damages. This remedy aims to prevent the defendant from unjustly benefiting from their wrongful conduct.

DIFFERENCE BETWEEN CONVERSION AND TRESPASS

Conversion and trespass are both legal concepts related to interference with another person's property, but they differ in several key aspects as would be discussed below;

1. Nature of Interference: Conversion involves a substantial interference with the plaintiff's right to possess or use their property, often resulting in a deprivation of the property while Trespass involves an unauthorized entry onto the plaintiff's property, without necessarily depriving them of possession or ownership.

2. Intent: Conversion typically requires intent or knowledge on the part of the defendant to exercise control over the property in a manner inconsistent with the owner's rights while Trespass can occur regardless of the defendant's intent, as long as there is an unauthorized entry onto the plaintiff's property.

3. Remedies: Remedies for conversion often include monetary damages, replevin (regaining possession of the property), and accounting of profits while remedies for trespass may include damages for any harm caused by the entry, injunctive relief to prevent future trespasses, and potentially nominal damages even if no harm is proven.

4. Duration of Interference: Conversion often involves a longer-term or more permanent interference with the plaintiff's property rights while Trespass generally involves a temporary or fleeting interference, such as crossing onto someone's land without permission.