Also known as: willful and malicious conversion · willfully maliciously converted · willful malicious conversion · conversion · wrongful conversion
Written by attorneys · grounded in primary & secondary sources — see below
An intentional exercise of dominion over another's chattel or property done with ill will or intent to harm the owner.
Walter Washington signs a binding contract to buy land from Westbrook Dynamics. Before closing a fire destroys the buildings. Walter refuses to pay claiming the destruction excuses performance. Equity treats Walter as owner at contract formation so he must pay the full price despite the loss.
Wyatt Wilson borrows a specialized machine from Wolverine Steel for a limited repair job. He deliberately smashes the machine beyond repair to prevent a competitor from using it. Wolverine Steel recovers the value because the intentional destruction changes the chattel's identity.
Select any source to read its text and confirm it supports the definition.
William Williams serves as trustee of a trust that leaves an outright remainder to a disabled beneficiary. After unforeseen medical costs arise the court authorizes conversion of the remainder into a special needs trust. The change preserves assets and fulfills the settlor's intent under equitable deviation rules.
Winston West contracts to purchase improved property from Wellesley Media. A storm destroys the structures before closing. Under the majority rule Winston bears the loss and cannot avoid the contract or reduce the price even though the seller still holds legal title.
Wallace Webb stores crates for Westmont Healthcare under a contract limiting use to storage only. He removes and sells several crates for personal profit. The serious violation of the owner's control rights subjects Wallace to conversion liability.
Willow Walker contracts to buy land from Wolverine Steel. A flood damages the property before deed delivery. In a jurisdiction following the minority rule the seller still bears the risk so Willow may rescind without paying the full price.
The actor must intend both the exercise of dominion and harm to the owner or act with conscious disregard of the owner's rights. Mere negligence or good-faith mistake does not suffice.
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A debt arising from willful and malicious conversion of another's property is nondischargeable under the Bankruptcy Act. The bankruptcy court must find both the intentional act and the malicious intent before denying discharge.
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No. The definition focuses on the intentional violation of the owner's rights. The converter need not obtain a direct benefit. Harm to the owner through unauthorized dominion is enough.
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Equitable conversion itself is a legal fiction allocating risk. Liability for willful and malicious conversion arises only when a party intentionally interferes with the other's property rights in a malicious manner beyond the ordinary risk allocation.
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…could use in its manufacturing operations. By December 26, 1967 the parties had entered into what they designated as a toll conversion service contract known as the Molten Metal Agreement under which Essex would supply ALCOA with alumina which ALCOA would convert by a smelting process into molten aluminum. Under the terms…