## **Learning Outcomes**

This article explains conversion as an intentional tort to personal property, including:

- Identifying the elements of a prima facie case—act, intent, causation, and serious interference—and understanding how each element is tested on the MBE.
- Recognizing the range of acts that can amount to conversion, such as wrongful acquisition, transfer, detention, misuse, destruction, and substantial alteration of a chattel.
- Distinguishing conversion from trespass to chattels by applying the seriousness factors—duration, extent of harm, inconvenience, and assertion of ownership—and matching each tort to its proper remedy.
- Determining what kinds of property can be the subject of conversion, with emphasis on tangible personal property and documents that embody intangible rights, while excluding real property and pure intangibles for exam purposes.
- Applying the demand-and-refusal framework to scenarios involving lawful initial possession, such as bailees and borrowers, and assessing when a refusal to return creates conversion liability.
- Evaluating how mistake, good-faith purchase, and consent affect liability, and understanding why a bona fide purchaser or well-intentioned bailee can still be liable for conversion on the MBE.
- Selecting the correct measure of damages in exam questions, focusing on fair market value at the time and place of conversion, the forced-sale effect, and when replevin or additional incidental damages may be appropriate.
- Using a structured approach to multiple-choice questions that first classifies the interference (conversion versus trespass to chattels), then identifies the proper plaintiff, remedy, and any applicable defenses or privileges.

## **MBE Syllabus**

For the MBE, you are required to understand intentional torts to property, with a focus on the following syllabus points:

- Definition and elements of conversion (act, intent, causation, and serious interference).
- Acts that amount to conversion, including wrongful acquisition, transfer, detention, destruction, and misuse.
- Difference between conversion and trespass to chattels, especially the seriousness of interference and measure of damages.
- Subject matter of conversion (tangible chattels and certain documents embodying intangible rights).
- Remedies for conversion: full market value damages and replevin, and the “forced sale” effect.
- The impact of mistake, consent, and bona fide purchase on liability.

## **Test Your Knowledge**

_Attempt these questions before reading this article. If you find some difficult or cannot remember the answers, remember to look more closely at that area during your revision._

1. Which of the following is NOT required to establish conversion?  
   a) Intent to perform the act interfering with the chattel  
   b) Actual damage to the chattel  
   c) Serious interference with the plaintiff’s possessory rights  
   d) Causation

2. Which remedy is most appropriate for conversion?  
   a) Nominal damages only  
   b) Injunction  
   c) Full market value of the chattel at the time of conversion  
   d) Punitive damages only

3. Which of the following is most likely to be conversion rather than trespass to chattels?  
   a) Briefly borrowing a friend’s book and returning it unharmed  
   b) Permanently withholding a friend’s laptop after refusing to return it  
   c) Scratching a friend’s car while parking  
   d) Accidentally spilling coffee on a friend’s shirt

## **Introduction**

Conversion is an intentional tort protecting a person’s possessory interest in personal property. It involves a serious interference with another’s right to possess a chattel, such that the defendant may be required to pay the full value of the item. On the MBE, conversion often appears after a defendant takes, sells, destroys, or refuses to return property, or when a good-faith buyer unknowingly purchases stolen goods.

> **Key Term: Chattel**  
> Tangible, movable personal property (e.g., cars, jewelry, equipment) and certain documents representing intangible rights (e.g., promissory notes).
>
> **Key Term: Conversion**  
> The intentional exercise of dominion or control over another’s chattel that seriously interferes with the owner’s right to control it, justifying payment of the full value of the chattel.

Two big ideas drive most conversion questions:

- The **interference** must be serious enough to justify making the defendant pay the full market value of the property.
- The defendant only needs to **intend the act** that interferes with the chattel, not to intend harm or to “steal.”

Understanding where conversion stops and trespass to chattels begins is critical, because the choice of tort determines the remedy.

> **Key Term: Trespass to Chattels**  
> An intentional, lesser interference with another’s possessory interest in a chattel, causing actual damage or loss of use, but not so serious as to require full-value damages.

## Elements of Conversion

To establish conversion, the plaintiff must prove:

1. **Act:** The defendant committed an act interfering with the plaintiff’s right of possession in a chattel.
2. **Intent:** The defendant intended to perform the act that interfered with the chattel (intent to cause harm is not required).
3. **Causation:** The defendant’s act caused the interference.
4. **Serious Interference:** The interference is so substantial that the defendant should pay the full value of the chattel.

### Act: Interference with Possession or Ownership

The act must interfere with the plaintiff’s **right of possession** or ownership. Typical acts include:

- Taking the chattel.
- Using it in a way inconsistent with the owner’s rights.
- Destroying it.
- Refusing to return it on demand.
- Transferring it to someone else.

The plaintiff must have **possession or an immediate right to possession** (e.g., an owner, a bailee, or a person entitled to immediate delivery). Either can sue for conversion.

> **Key Term: Dominion and Control**  
> Exercising power over a chattel as if it were one’s own, inconsistent with the rightful owner’s possessory rights.

### Intent

Only intent to do the **physical act** that interferes with the chattel is required:

- The defendant does **not** need to intend a legal wrong or intend to “convert.”
- It is enough that the defendant intentionally did the thing (took, used, sold, destroyed, etc.).

Important points for the MBE:

- **Mistake is not a defense.**  
  A good-faith belief that the property belonged to the defendant, or to the transferor, does not excuse liability.

- **No transferred intent.**  
  Unlike battery or trespass to land, you cannot satisfy conversion’s intent element by “transferring” intent from a different tort. The defendant must intend the act as to the specific chattel at issue.

- **Accident usually is not conversion.**  
  Accidentally damaging another’s property, without any intentional interference with that chattel, is not conversion (though it may be negligence).  
  However, if the defendant intentionally takes or uses another’s chattel without permission and then accidentally destroys it while using it, conversion liability may still attach because the initial interference was intentional.

### Causation

The interference must be legally caused by the defendant’s act or something set in motion by that act. This is usually straightforward: “But for” the defendant’s taking, selling, or refusal to return, the plaintiff would not have been deprived of the chattel.

### Serious Interference

The hallmark of conversion is **serious interference** with the plaintiff’s possessory rights.

> **Key Term: Serious Interference**  
> A level of interference with a chattel that justifies requiring the defendant to pay the full market value of the item.

Courts consider several factors when deciding whether interference is serious enough for conversion (rather than trespass to chattels):

- The **duration** and extent of the interference (hours versus weeks or permanently).
- The defendant’s **intent** to assert a right inconsistent with the plaintiff’s (e.g., claiming ownership, selling the item).
- The defendant’s **good faith** or bad faith.
- The **extent of harm** to the chattel (minor scratch vs. destruction).
- The **expense or inconvenience** to the plaintiff in regaining or replacing the property.

The more extreme the interference, the more likely the court will find conversion.

## What Acts Constitute Conversion

Conversion can occur through various acts, including:

- **Wrongful acquisition** (e.g., theft, embezzlement, fraud).
- **Wrongful transfer** (e.g., selling, giving, or pledging property without authority, or misdelivering goods).
- **Wrongful detention** (e.g., refusing to return property on demand).
- **Substantial alteration or destruction** (e.g., seriously damaging or destroying the chattel, significantly changing its character).
- **Misuse of the chattel** (e.g., using a borrowed item in a way far beyond the agreed scope or expected use).

> **Key Term: Bailee**  
> A person rightfully in possession of another’s chattel (e.g., a repair shop, storage facility, or carrier) who owes duties of care and proper return.

Even apparently innocent actors can be liable:

- A **bona fide purchaser** of stolen property is liable for conversion to the true owner.
- A **bailee** who, after being notified of the true owner’s rights, returns goods to the wrong person can be liable for conversion.

> **Key Term: Bona Fide Purchaser**  
> A person who buys property in good faith without notice of any defect in title; may still be liable for conversion if the property was stolen or wrongfully acquired.

### Wrongful Detention and Demand

If the defendant initially acquires the chattel lawfully (e.g., a borrower or bailee), conversion may arise when:

- The plaintiff demands return; and
- The defendant unjustifiably refuses.

The refusal itself is treated as an assertion of inconsistent dominion and can turn a minor interference into conversion.

### Misuse Beyond Scope of Permission

Even when the owner consents to limited use, using the chattel in a substantially different way or to a greater extent than allowed can be conversion, particularly if:

- The misuse causes substantial damage; or
- It exposes the chattel to serious risk.

This is a common MBE issue: a seemingly “small” deviation that results in total destruction can be tested as conversion.

## Subject Matter of Conversion

Conversion applies to certain kinds of property:

- **Tangible personal property** (chattels), such as vehicles, electronics, jewelry, equipment, animals.
- **Intangible rights merged into a document**, such as:
  - Promissory notes,
  - Stock certificates,
  - Bills of lading,
  - Warehouse receipts.

> **Key Term: Merged Document**  
> A document in which an intangible right (e.g., payment or title) is embodied, so that control over the document effectively controls the right.

On the MBE:

- **Real property cannot be converted.** Wrongful interference with land is trespass to land or nuisance, not conversion.
- **Pure intangibles** (e.g., customer lists, goodwill) are generally not treated as “convertible” property for exam purposes unless they are embodied in a specific document.

## Remedies for Conversion

The primary remedy is damages equal to the **fair market value** of the chattel at the time and place of conversion.

> **Key Term: Market Value**  
> The price a willing buyer would pay a willing seller for the chattel in an open market at the relevant time and place.
>
> **Key Term: Forced Sale**  
> The effect of a conversion judgment: once the defendant pays the full value, title to the chattel passes to the defendant as though a sale occurred.

Key points:

- The usual measure is the **full market value** at the time and place of conversion.  
  On the MBE, if answer choices offer multiple damages formulas, the best answer is almost always “fair market value at the time of conversion.”
- Once the plaintiff recovers this amount, the defendant effectively becomes the owner (forced sale).
- The plaintiff is generally **not required to accept a return** of the property instead of money, though the parties may agree to it.
- Some authorities allow **additional incidental damages** (e.g., interest, provable loss of use), but exam questions commonly focus on the full market value alone unless the fact pattern clearly emphasizes additional losses.

The plaintiff may also pursue **replevin**:

> **Key Term: Replevin**  
> An action to recover possession of specific personal property wrongfully taken or withheld.

Replevin is appropriate where the plaintiff wants the actual item back (e.g., a unique heirloom), often combined with damages for loss of use.

## Distinguishing Conversion from Trespass to Chattels

Both torts involve interference with personal property, but they differ in **degree** and **remedy**.

- **Trespass to chattels**:
  - Covers **less serious interferences**.
  - Plaintiff must show **actual damage** or a substantial loss of use.
  - Remedy: cost of repair, diminution in value, or loss-of-use damages (e.g., rental value).

- **Conversion**:
  - Requires **serious interference** with the right to control the chattel.
  - Plaintiff recovers the **full market value** of the chattel (forced sale).
  - Destruction or permanent deprivation almost always qualifies.

Courts use the seriousness factors listed earlier (duration, intent to assert ownership, harm, inconvenience) to distinguish between the two.

> **Exam Tip:**  
> If the owner is permanently deprived of the property, or the property is destroyed or significantly altered, select **conversion**. If the interference is minor or temporary, with limited harm, think **trespass to chattels**.

### **Worked Example 1.1**

A borrows B’s rare coin collection without permission, intending to return it in a week. Instead, A sells the coins to C, who does not know they were borrowed. B demands the coins back, but C refuses.

> **Answer:**  
> A’s sale is a serious interference with B’s possessory rights, amounting to conversion. C, as a bona fide purchaser, is also liable for conversion because title could not pass from a thief or wrongful possessor to him. B may recover the full market value of the coins from either A or C. Payment of that value creates a forced sale, passing title to the payer.

### **Worked Example 1.2**

D borrows E’s bicycle for an afternoon ride without asking, but returns it undamaged the same evening.

> **Answer:**  
> D’s temporary use intentionally interfered with E’s possessory rights but did not seriously interfere with them. This is likely trespass to chattels, not conversion, because the interference was brief, caused no damage, and did not justify full-value damages. E might recover nominal damages or loss-of-use damages if any.

### **Worked Example 1.3**

A musician’s brother borrowed the musician’s electric guitar to use in his classroom the next day. Instead, he took it to a rowdy bar and played with his rock band all night. A drunk patron grabbed the guitar and smashed it. The repair cost is $750; the guitar’s market value at the time was $1,500. The musician sues his brother for conversion.

> **Answer:**  
> The brother intentionally used the guitar beyond the scope of permission (taking it to a bar instead of a classroom) and exposed it to a foreseeable risk, resulting in its destruction. This is conversion. The usual remedy is the full market value at the time and place of conversion—$1,500. On the MBE, that is the best answer, rather than repair cost or unspecified loss-of-use damages.

### **Worked Example 1.4**

A warehouse receives a shipment of televisions from a person who, unknown to the warehouse, stole them. Before the true owner appears, the warehouse returns the televisions to the thief at his request. Later, the true owner sues the warehouse for conversion.

> **Answer:**  
> A bailee who receives stolen goods without notice of the theft may return them to the person who delivered them without liability, provided the true owner has not yet asserted a claim. Because the warehouse returned the televisions before any demand from the true owner and had no notice of the theft, it is not liable for conversion on these facts.

### **Exam Warning**

> On the MBE, intent for conversion means intent to perform the act, not intent to cause harm or to convert. A mistaken belief in ownership or authority to transfer is not a defense. However, accidentally damaging another’s property, without any intentional interference with that chattel, is not conversion.

### **Revision Tip**

> If the interference is minor or repairable at modest cost, think trespass to chattels. If the owner is permanently deprived of the property, or it is destroyed, significantly altered, or wrongfully sold, think conversion and full market value damages.

## Defenses and Privileges (Brief Overview)

Most defenses to intentional torts can also apply to conversion, including:

- **Consent:** If the owner consented to the use or disposition of the chattel within the scope of what occurred, there is no conversion. Exceeding the scope (e.g., using the item in a much riskier way than agreed) may eliminate this defense.
- **Necessity:** In rare cases, damage to property to avert a serious threat may be privileged, though the actor may still have to pay actual damages (private necessity) or may be fully excused (public necessity).
- **Privileges of law:** Lawful seizure or retention of property by officers or officials acting within legal authority will not constitute conversion.

However, defenses are limited:

- Mere **mistake of law or fact** about ownership, title, or authority is not a defense.
- Self-help “recapture of chattels” must be carefully confined to reasonable, peaceful means; using excessive force to retake property can itself create tort liability, even if the owner was originally wronged.

## **Key Point Checklist**

_This article has covered the following key knowledge points:_

- Conversion protects a person’s possessory interest in **chattels** (personal property), not land.
- A prima facie case of conversion requires an act, intent to do the act, causation, and **serious interference** justifying full-value damages.
- The defendant need only intend the act that interferes with the chattel; intent to harm or to “steal” is not required, and mistake is not a defense.
- Acts such as theft, wrongful sale, refusal to return on demand, destruction, and substantial misuse may constitute conversion.
- Even **bona fide purchasers** and some bailees can be liable if they seriously interfere with the true owner’s rights.
- Conversion applies primarily to tangible personal property and to certain documents in which intangible rights are **merged**; pure intangibles and real property cannot be converted on the MBE.
- The standard remedy is the chattel’s **full market value** at the time and place of conversion, resulting in a **forced sale**; replevin is available if the plaintiff seeks return of the specific chattel.
- Trespass to chattels involves lesser, repairable interferences with a chattel; conversion involves serious, often permanent, interferences.
- On the MBE, destruction or permanent deprivation of a chattel almost always points to conversion and full-value damages.

## **Key Terms and Concepts**

- Chattel
- Conversion
- Trespass to Chattels
- Dominion and Control
- Bona Fide Purchaser
- Bailee
- Serious Interference
- Merged Document
- Market Value
- Forced Sale
- Replevin

Intentional torts - Conversion