Page 6 Flashcards
What are the factors to consider for whether or not a substantial interference with chattel occurred enough for conversion?
- extent/duration of control
- D’s intent to assert a right to the property
- defendant’s good faith
- harm done
- expense/inconvenience caused
- aiding and abetting
- substantial dispossession
How does D’s good faith relate to conversion?
Trying to steal is conversion because of bad faith
What types of harm are considered substantial enough for conversion?
If the chattel has been destroyed or materially altered
How can you be guilty of conversion if you’re an aider and abettor?
You can be liable for storing someone else’s stolen good
How is wrongful acquisition a type of conversion?
Things like:
- theft
- embezzlement
- receiving stolen property
Even if buying and receiving stolen property is done in good faith, why is there still a conversion?
Because of the intent to assert ownership and to deal with the chattel in a way that is inconsistent with the rights of the true owner
How is wrongful transfer a type of conversion?
Things like selling or misdelivering property become a conversion even if they happen in good faith or because of an innocent mistake
What is a serial conversion?
If you buy stolen property, you are a converter, even if you do it in good faith because they don’t have title so they cannot transfer it to you
What is an exception to serial conversion?
If the D doesn’t steal the item, but tricks someone into selling it, then he does have title and can transfer it to you, so you aren’t liable for conversion
What are remedies for conversion?
It must be established that there was actual and substantial damage. Then the P can choose to either:
- have a forced sale of the chattel, or
- recover the diminished value and have the property be returned with damages
What is included in the recovery of damages as a remedy for conversion?
- D pays the full value of the chattel at the time plus damages
- D pays market value at time of conversion plus interest to the date of the suit
- if market value fluctuates: P recovers the highest value between the time of conversion and the time of trial
- replevin: return of item and recovery of damages
If an item has no market value, what will the courts do for remedy for conversion?
Replacement value or actual value of property
If the defendant offers to return the chattel, does that alleviate the conversion?
No, and the plaintiff doesn’t have to accept the return, but he can. This is considered in mitigation of damages
What are the key differences between trespass and conversion?
Interference doesn’t have to be substantial for trespass and it doesn’t result in a forced sale of the property, and conversion desires to get back the full value of the property, not the property itself
What is trespass to chattels?
Volitional act done with requisite intent which causes an interference with plaintiff’s chattel