Conversion and Civil Theft: What’s the Difference?

Although theft is a criminal action, it also has a civil counterpart—in fact, there are a few areas where people can recover for stolen property in civil court, recovering the value of the property as the measure of damages, all without getting the criminal justice system involved.

Conversion of Property

One such cause of action is called conversion. Conversion is where someone takes property and converts it to their own, wrongfully—basically, the definition of criminal theft.

To win a conversion case, the person suing must show that they were the rightful owners of the property, and that the Defendant took actions that were inconsistent with this ownership—that is, that the Defendant deprived the owner of possession, ownership or usage of the property, and that the Defendant had no right to do that.

There also must be some measure of damages, but in conversion cases, this is usually obvious—the value of the property itself that was taken or used by the Defendant.

A court can order the stolen property returned, but can also order payment of the value of what was taken, along with any damages that may have stemmed from, or been a consequence of, the conversation.

No Contracts

Notably, you cannot plead and win a conversion case, if you have a contract. A breach of contract action is different from conversion, and if property is supposed to be returned by the terms of an agreement, the correct remedy is through a breach of contract case.

Civil Theft

Similar to conversion is civil theft. You will notice that in the definition of conversion, there was no actual intent that needed to be proven. Just taking and depriving the owner of the property is enough to warrant a conversion action.

But civil theft is different; it does require or suggest that there is some criminal motive and intent.

So why would you plead or ask for civil theft instead of conversion, knowing that it is harder to prove than simple conversion?

The answer is that civil theft allows for the recovery of three times the amount that was taken—yes, a triple multiplier for damages. This is a much harsher and more severe penalty, and allows for recovery of significant damages, even if actual damages cannot be or are difficult to prove.

Civil theft also does require that a demand letter be sent to the other side, and the other side has the chance to remedy the situation for 30 days after the notice is sent, and before a lawsuit is filed.

Limitations

Like conversion, you cannot claim civil theft, where there is a contract that provides a remedy; in that case, all you can do is plead breach of contract and get whatever contractual remedies the law allows.

Both civil theft and conversion require that some tangible, identifiable property be involved. It cannot be simply money, or other property which can be easily replaced or duplicated.

Let the West Palm Beach commercial litigation lawyers at Pike & Lustig help you with your trade secret case today if you have business property or information that you feel has been wrongfully taken from you.

Sources:

m.flsenate.gov/Statutes/772.11

floridabar.org/the-florida-bar-journal/counsel-beware-considerations-before-implementing-floridas-civil-theft-statute/