Conversion

Question 1

What is conversion?

Answer 1

Unlawful intentional interference with plaintiffs right to immediate possession.

Question 2

Elements of conversion

Answer 2

1. Plaintiffs right to immediate possession (question of law)
2. Defendants intentional (even innocent) act or dealing with the chattel. E.g. using it, changing it, transferring it.
3. The act or dealing was inconsistent with plaintiffs continuing rights in the goods.

Question 3

Remedies for conversion

Answer 3

Fictional sale, converters keep goods and pay plaintiff value at the time of conversion.

Consequential damages also available.

Question 4

Hollins v Fowler (Blackburn J’s principle)

Answer 4

Ratio: sale and delivery (Marcq v Christie’s) coupled with knowledge of a change in ownership can be conversionary (even if innocent). Some interferences can be lawful (Finders or knowledge)

Facts: Fowler owns cotton bales. Bayley lied stating he was buying on behalf of Seddon. Bayley is given the cotton bales. Micholls sends agent Hollins to buy the bales, brings them back. Fowler sues Hollins (agent).

Question 5

Kuwait Airways Corporation v Iraqi Airways company

Answer 5

Ratio: Acts must be “so extensive an encroachment on the rights of the owner [to be inconsistent]”. Not all acts with amount to conversion.

Facts: Iraqi forces seizes 10 places and moves them to iraq. “resolution 369” - steps to carry this out included painting the planes, getting insurance, using them commercially, and registering them. Also moved them for safekeeping.