Conversion is a legal term that refers to an intentional tort that falls under the umbrella of theft crimes. In legal terms, the term theft is defined as the unauthorized taking of another person’s property coupled with the intent to permanently deprive the rightful owner of that property. The legal element of “taking” is further defined as seizing control over the personal property of another.
Conversion is one of the lesser forms of theft crimes. Although the legal definition for conversion may vary between states, the general elements of theft by conversion are as follows:
- The rightful owner had full ownership or right to possession of the property;
- The individual accused of conversion committed an unlawful taking of the property that was inconsistent with the property rights of the rightful owner or granted to them by the rightful owner; and
- The individual accused of conversion failed to return the piece of property or converted the property into another form without permission of the rightful owner.
In general, the crime of conversion occurs when an individual has permission from the rightful owner of a piece of property to use it for one use, but then does not return the piece of property afterwards or converts the property to their own use. Thus, with the crime of conversion, permission to possess the property was initially given by the property owner for the initial taking.
Eligibility: Generally, the kind of property that can be converted in a criminal act is personal property as opposed to real property. The definition of what constitutes personal property and any property that may be excluded from the definition could possibly vary from state to state, but the definitions are likely to be mostly the same. For the most part, the law defines what real property is and what personal property is quite clearly.
For example, if an individual rents a vehicle from a rental agency, but then does not return the vehicle at the end of the agreed rental period, they may be charged with the theft crime of conversion.
Another example of conversion would be a person giving another individual money to make a specific investment or acquire certain goods on their behalf, but that person instead makes a different investment or purchases goods other than those the original owner of the money wanted.
Conversion can also involve theft of property of limited value. For example, if a person lends another person their dress clothes for a formal event, but then the borrowing party never returns the clothes to the rightful owner, the borrower may be charged with conversion.
State Variations: Different states may define conversion differently. They may have different elements in their respective definitions of the crime, different defenses and different remedies. However, there are also likely to be significant similarities in the law of conversion among states. One likely area of difference would be the value threshold for determining whether a conversion is charged as a misdemeanor or felony.
What Are Some Defenses to a Claim of Conversion?
In short, there are many different legal defenses that an individual charged with conversion may affirmatively raise to avoid both civil liability and a criminal conviction. Once again, a theft crime, including the crime of conversion, is an intent-specific crime.
This means that the defendant must have acted with the intent to deprive the property’s owner of their property permanently. As such, the most common legal defense is the specific intent defense.
In every criminal case, the prosecution is responsible for proving all of the elements of the crime of conversion beyond a reasonable doubt. This includes the element that the defendant intended to permanently deprive the owner of their property by failing to return it or converting it into another form.
As such, if the prosecution is unable to prove the defendant’s specific intent to deprive the owner of their property permanently, the accused may be able to successfully argue that the prosecution has failed to satisfy their burden.
For example, if the accused party borrowed a car, and did not intend to deprive the rightful owner of their car permanently, but simply failed to timely return the car, there is a chance that they will not be convicted of conversion. Instead the charges against them would be dropped, or they may be charged with the lesser crime of trespass to chattel.
Other examples of common legal defenses to conversion include:
- Abandonment: The defendant may assert that the rightful owner of the property abandoned the property, and as such they forfeited the legal ownership of the property;
- Lack of Value: The defendant may assert that the property alleged to have been converted has no monetary value, and as such the rightful owner cannot prove that they suffered any harm by the conversion;
- Privilege: When asserting the legal defense of privilege, the defendant asserts that they had the right to deprive the rightful owner of their property in order to protect the property or people from harm;
- Interest: A defendant may assert that they had an interest in the property, such as being a part owner of the property;
- Consent: Consent is an absolute defense to conversion, which a defendant may assert when the rightful owner gave the defendant the permission to use or possess the property and the defendant operated within the boundaries of that consent;
- Authority of Law: The defendant may assert that they have the right to convert property in accordance with a court order or judgment; and/or
- Statute of Limitations: There are certain periods of time in which the prosecution or a person alleging they have been injured (i.e. a plaintiff) must charge a defendant or file a lawsuit against a defendant.
- As such, if either of those parties fail to charge the defendant within a specified period of time, or fail to initiate a lawsuit within the specified period of time, the defendant can assert that the statute of limitations has run and they are barred from bringing charges or a personal injury claim.
What Are Remedies for Conversion?
It is important to note that the exact remedies for conversion will depend on the state laws that cover the tort of conversion in the state in which the taking occurred. In general, the legal remedies for conversion involve a court order for the party that converted the personal property of another back to the original owner.
In addition to returning the property to its rightful owner, the party that took the personal property will also generally be required to reimburse the owner for any damage that they occurred. For example, if a party borrowed a car for an errand, but did not return the car for days, the rightful owner may seek damages related to the value of the time the owner was deprived of their car, as well as any damages on the car that occurred during the wrongful possession of the vehicle.
Can You Face Criminal Charges for Conversion?
In short, yes, an individual that commits conversion will be charged under the criminal theft statutes in the state in which the theft crime occurred. It is important to note that the crime of theft by conversion can either be charged as a felony or misdemeanor.
The exact criminal charge typically depends upon the value of the property that the individual is accused of converting. For example, for property that is valued at $500 or less, the crime of theft by conversion may be charged as a misdemeanor crime. Misdemeanor charges are generally punished by up to 12 months in jail, criminal fines of up to $1,000, or a combination of both.
In cases where the property that was converted was valued at higher amounts, such as more than $5000, then the crime of theft by conversion may be charged as a felony crime. Felony theft charges are typically punishable by imprisonment for 1 to 10 years, payment of a fine of more than $1,000, or a combination of both.
Finally, repeat or habitual offenders will often be charged with a more serious offense and also face payment of a fine of a larger amount or longer prison terms. In addition to the criminal penalties discussed above, individuals convicted of theft by conversion will also generally have to pay the victim the replacement value of the property that was converted.
What Are Some Other Considerations?
Other considerations to factor in include:
Process/Steps: As noted above, the victim of a conversion may also file a civil lawsuit against the perpetrator, because conversion is a tort, i.e. a civil wrong, also. A person can seek redress for conversion of their property in their state’s civil justice system. They would ask for compensatory damages to reimburse them for any economic losses they have suffered.
The process of pursuing a civil lawsuit generally involves gathering evidence, filing a complaint, serving the defendant with the complaint, engaging in discovery, and possibly having a trial. The specific procedures and requirements are mostly the same in all states, with some variation depending on the state and the rules of a state’s court.
The Importance of Hiring a Lawyer: A person can always represent themselves in a civil lawsuit. For example, if the amount of a person’s economic loss is not great, they might file their lawsuit against the person who converted their property in a small claims court and represent themselves.
However, in a case in which a person’s loss is significant, then they may want to hire a lawyer to represent them. The decision whether to hire a lawyer depends on the complexity of the case, the value of the claim, and the individual’s legal knowledge and resources.
Consulting an attorney is generally recommended so that a person understands their rights, and the costs of hiring a lawyer. A consultation could help the victim of conversion understand exactly what a lawyer can do for you and how they can increase your chances of succeeding in your lawsuit.
In addition, the victim of a conversion might have some kind of insurance that would cover the cost of hiring a lawyer and a lawyer might be able to help a victim identify any insurance they might have that could help them afford legal representation.
Costs/Fees: There are costs to pursuing a civil lawsuit. Typical costs in civil cases include attorney’s fees, the fee for filing a complaint, other court costs, expert witness fees, and the costs of gathering evidence, e.g. deposition costs. These costs are going to be different depending on the complexity of the case and the state in which the case is fought.
Evidence/Documents: The type of evidence that would be needed in both civil and criminal conversion cases would include ownership documents, e.g. the registration for a vehicle, receipts, contracts, witness testimony, photographs, and any other documentation that supports the claim of ownership and the unauthorized use of the property. The specific evidence required will depend on the facts of the case and the elements that need to be proven.
Do I Need to Contact an Attorney?
If you have been accused of the theft crime of conversion, it is in your best interest to immediately consult with an experienced criminal defense attorney. An experienced criminal defense attorney can help you understand your specific state’s laws regarding conversion, as well as determine if any legal defenses are available based on your specific circumstances.
If there is an available legal defense, an attorney will be able to timely and properly raise the applicable legal defense to have the charges being brought against you reduced or dismissed completely. Finally, an attorney can also represent you at any in person criminal proceedings.
