What Is "Conversion" Under New York Law?

Let's be clear about something: when lawyers use the term "conversion," they are not talking about changing religions; rather, they are referring to causes of action, or claims, that a property owner can make if someone else assumes control over his property by refusing to return it, by disposing of it, by misusing it or by otherwise dealing with it in a manner inconsistent with the owner's rights.

There are two (2) types of conversion claims: one where the defendant wrongfully took the plaintiff's property, and another where the defendant, although originally entitled to take the plaintiff's property (such as a repair shop), is now wrongfully refusing to return it.

Generally speaking, in order to succeed on a conversion claim, the plaintiff must prove that he has legal ownership of a specific identifiable piece of property, and that the defendant has intentionally interfered with the plaintiff's ownership rights in the property.

Here's an important caveat: conversion is inapplicable to a real property or breach of contract claim.

If a plaintiff prevails on a conversion claim, he will be entitled to recover the replacement value of the property that it was worth at the time it was taken, plus interest on that value from the time of the conversion, compensation for time lost and money spent in pursuit of the property, and, if the conversion is malicious and wilful, emotional distress and physical harm resulting therefrom. Importantly, the profits lost as a result of conversion are generally disallowed, but in some cases they may be recoverable, such as when the loss may reasonably be expected to follow from the conversion.


Long Island, New York business litigation lawyer Jonathan Cooper represents businesses and individuals in commercial litigation and other matters ranging from breach of contract and breach of fiduciary duty to trade secret theft in New York's courts located in Nassau, Brooklyn, Bronx, Queens, Suffolk counties, as well as New York City and Westchester. In order to learn more information about business or commercial litigation under New York law, please see Jonathan Cooper's New York business litigation blog; to schedule a free consultation with Mr. Cooper, please contact his main office located in Cedarhurst, Long Island at 516.791.5700, or toll free at 866.374.1164.

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