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Courts & Disputes

Conversion

Conversion is dealing with somebody else's goods as though they were yours. Selling them, keeping them, or refusing to hand them back. The remedy is usually the value of the goods.

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What conversion means

Conversion is treating property that is not yours as if it were.

It is a civil wrong, and it does not require dishonesty. A person who genuinely believed they were entitled to sell goods can still be liable, because the wrong is the interference with the owner's rights rather than the state of mind behind it.

The conduct takes several forms. Selling goods belonging to another. Refusing to return them on demand. Destroying or consuming them. Using them as your own in a way inconsistent with the owner's rights. Taking them and keeping them.

What the claimant must show is a right to immediate possession of the goods and conduct by the defendant inconsistent with that right. The usual remedy is damages measured by the value of the goods at the time of conversion, plus any consequential loss.

How it is used

The Nigerian examples are consistent and familiar.

A mechanic who sells a customer's vehicle to recover unpaid repair costs, or simply because it has been there a long time. A warehouse or clearing agent who disposes of stored goods. A landlord who removes and disposes of a tenant's belongings. An employer who keeps a former employee's personal property. A carrier who delivers goods to the wrong person. A borrower who sells an item they were only lent.

The claim begins with a demand. A written demand for return, giving a deadline and stating what will follow, is both the correct first step and useful evidence, because refusal after demand is itself conversion.

Where the goods still exist and the claimant wants them back rather than their value, the claim is usually framed in detinue as well, since that is the action aimed at recovery of the goods themselves.

Key features

  • Dealing with another's goods inconsistently with their rights
  • Does not require dishonest intent
  • Requires the claimant to have a right to immediate possession
  • Remedy is usually damages measured by the value of the goods
  • Refusal to return after a demand is itself an act of conversion
  • Often pleaded alongside detinue where the goods still exist

How this works in Nigeria

Two Nigerian features are worth understanding before making a claim.

First, a lien may defeat it. A mechanic, printer or warehouse who is owed money for work done on goods may have a possessory lien entitling them to retain the goods until they are paid. Retaining is lawful. Selling is generally not, because a possessory lien is a right to hold, not a right to sell, unless a statute or the contract gives a power of sale. That distinction decides many Nigerian disputes.

Second, self help by landlords is a frequent source of these claims. A landlord who removes a tenant's property and disposes of it, however much rent is owed, is exposed to a conversion claim on top of the unlawful eviction. The lawful route is notice and a court order.

Criminal and civil tracks can also run together. Where goods were taken dishonestly the conduct may amount to theft or stealing under the criminal law, prosecuted by the state, while the owner separately sues in conversion for the value.

Conversion vs detinue vs theft

Three responses to somebody having your property, with different aims.

Conversion is a civil claim for interference with your goods. The measure is the value of the goods at the time of conversion, so it compensates you as if they had been sold.

Detinue is a civil claim for wrongful detention where the goods still exist and you want them back. The court can order return of the goods or payment of their value, which makes it the better claim where the item is irreplaceable.

Theft, or stealing under the Criminal Code and Penal Code, is a criminal offence prosecuted by the state. It requires dishonest intent, the standard of proof is higher, and the outcome is punishment rather than compensation.

A person whose car was sold by a mechanic may have all three available at once, and the civil claim proceeds regardless of what the police do.

Limits and risks

You must have the right to immediate possession. Where you sold, pledged or leased the goods, you may not, and a claim can fail on that alone.

A valid lien defeats a claim based on mere retention, so a claimant who owes the defendant for work on the goods should expect that to be raised.

Value is measured at the time of conversion, which can be less than replacement cost today, particularly with inflation and depreciation.

And limitation periods apply, running from the act of conversion, so a claimant who spent two years asking politely may find the clock ran while they were negotiating.

Worth knowing

Send a written demand for return with a deadline, and keep proof of delivery. Refusal after a clear demand is itself conversion, which converts a vague dispute about where your property went into a dated act you can point a court at.

Questions people ask

What is conversion in law?

Dealing with somebody else's goods in a way inconsistent with their rights, such as selling them, destroying them, using them as your own or refusing to return them. It is a civil wrong and does not require dishonest intent.

What is the difference between conversion and detinue?

Conversion claims the value of the goods, compensating you as though they were sold. Detinue claims wrongful detention where the goods still exist and you want them back, and the court can order their return.

Can a mechanic sell my car because I owe repair costs?

Generally no. A possessory lien may entitle them to retain the vehicle until paid, but retaining is not the same as selling. Selling without a power of sale in a statute or the contract exposes them to a conversion claim.

My landlord threw out my belongings. What can I claim?

Conversion for the value of the property disposed of, alongside any claim arising from an unlawful eviction. A landlord must follow the notice and court process regardless of how much rent is owed.

Is conversion the same as theft?

No. Conversion is a civil wrong not requiring dishonest intent, and the remedy is compensation. Theft is a criminal offence requiring dishonesty, prosecuted by the state, with punishment as the outcome. Both can arise from the same facts.

How is compensation for conversion calculated?

Usually the value of the goods at the time of conversion, plus consequential loss that flows from being deprived of them. That can be less than what it would cost to replace the item today.

Documents that use this

Conversion of Goods in Nigerian Law — LegalDoc