Wrongful Conversion

Question 1

Wrongful Conversion

Answer 1

the right to a simple possessory interest that will generally never vest in a legal title because title is wrongfully converted

Question 2

Wrongful Conversion
Who has the better possessory interests
Who acquires title

Answer 2

The Wrongful Converter and subsequent purchasers have simple possessory interests good against all except true owner

They do not aquire title (subject exception)

Question 3

When can the true owner sue for damages and how?

Answer 3

Can sue wrongful converter at any time

Can sue later purchaser (as long as not within exception)

Damages

1) Replevin–> action taken to recover actual property
2) Trover–> Tort Remedy for fair market value of the item when stolen (might get additional damages)

Question 4

What are the exceptions to the rule that a subsequent purchaser can never acquire a title that has been wrongfully converted?

Answer 4

Generally–> Exceptions (title passes to bona fide purchaser):

i. Money and negotiable instruments
ii. Entrusted possession to merchant who regularly sells goods of that kind (not pawn shops) and subject to UCC

iii.Voidable title doctrine; knowingly passes title because of fraud in inducement
(Voidable by the person being defrauded until sold to a third party)