TORTS I 9.9.09 Midterm: Sept 23rd BASIC INTENTIONAL TORTS CompuServe Inc. v. Cyber Promotions, Inc. 962 F. Supp. 1015 (S.D. Ohio 1997) The is effected by trespass to chattel because of the partial interference in the use of the property o Dispossessing the ’s chattel Server influenced, it prevented company from assisting customers but not Utilized the Restatement of facts on p. 119 to clarify the interference Zaslow v. Kroenert (Cal. 1946) 276 P.2d 1 (Cal. 1946) An act of conversion was not committed, it was mere intermeddling o The possessions were moved/interfered with but not converted permanently away from original possessor Conversion o It is required that the individual must have the intent to effect (not harm) another from possessing their property o Check the ***mastering torts book for further definition Russel-Vaugn Ford, Inc. v. Rouse 206 So. 2d 371 Alabama was punishing the dealership for bad faith practices o This was the only tort that was brought to charge so they were applying such offense to to deter such future practices THIS IS NOT CONVERSION This is a court that’s effecting public policy Kremen v. Cohen 337 F.3d 1024 (9th Cir. 2003) The stumbling block o The lower courts were considered the domain name as an intangible Trespass to Land (Quare Clausum Fregit) Intent to be present Physical presence on, under, or above the land of another 1. a. Trespass to Land protects a posessor’s interest in exclusive possession of real property. A person who intentionally and without consent or privelege enters on, under, or above the land of another commits a trespass. i. Taking an unauthorized shortcut across the plaintiff’s lot, tunneling under it, stringing utility lines above it, or building a structure on it may be trespasses. b. Trespass to Chattels is the intentional exercise of dominion or control over another’s personal property but the act of “taking” is not necessary for it to be considered a tort. i. Applies to much more minor interferences 1. The interference causes a partial diminution of the chattel instead of the total replacement cost 2. Explain how CompuServe Inc. v. Cyber Promotions, Inc. involved a trespass to chattels. a. The ’s caused only a trespass to chattels instead of a conversion because the Appeals Court could not determine the total cost of diminution therefore ruling out the possibility of complete replacement of chattel b. The may have been in possession of such chattel and inconvenienced the yet it is impossible to compute burden when money damages aren’t reasonably recorded 3. What is the difference between trespass to chattels and conversion? a. Trespass to Chattels is much less severe of an interference than Conversion i. “The Second Restatement of Torts has marked the distinction by defining conversion as: “[A]n intentional exercise of dominion or control over a chattel which so seriously interferes with the right of another to control it that the actor may justly be required to pay the other the full value of the chattel.” Pg 116 ii. Conversion – “any act of dominion wrongfully exerted over another’s personal property in denial of or inconsistent with his rights therein” b. The two forms of trespass are determined in the calculation of damage i. “The distinction between conversion and trespass to chattels can be important because of the way in which damages are calculated” p. 116 4. In the case caption for Zaslow v. Kroenert, what is meant by the designation “Supreme Court of California, in Bank”? a. California courts choose to avoid the French definition of “en banc” which translates to “in total” or “the group” when applying to the totality of the court and all its judges. b. “In Bank” is an Americanized translation of “en banc” and the courts have acquired this term instead of the latter 5. What was the outcome in the trial court in the Zaslow case? What happened on appeal? Why? a. Trial Court’s decision to award Zaslow $3,500 was reversed with directions to the trial court to redetermine the amount of damages i. “Zaslow is entitled to actual damages in an amount sufficient to compensate him for any impairment of the property or loss of its use. But as the evidence shows $3,500 as the highest value placed upon the goods and it is undisputed that they were not damaged while in storage for about four months, the amount awarded by the judgment has no support in the evidence” pg. 121 6. Why didn’t the plaintiff in Zaslow sue for trespass to land? Who owned the real property in question? a. “the act of taking possession of a building and locking it does not, of itself, constitute a conversion of the personal property therein…” p. 120 i. “Thus, in Poor v. Oakman (104 Mass. 309) a person rightfully took possession of a building and put a new lock on the door…It was held that…the possessor of the real estate was not liable for conversion of the furniture…[one] who removes…chattels belonging to another, does not assert ownership or control over them to the extent of making him liable for conversion.” P. 120 ii. Mrs. Kroenert owned the real property in question until about a month and a half later Chapman took possession, where Zaslow was able to retrieve his belongings 7. Assume that Kroenert sold Zaslow’s personal property to Lefty’s Used Furniture Mart and that Buddy buys the furniture from Lefty’s. Could Zaslow sue Lefty’s for conversion? Could Zaslow sue Buddy? a. I believe under the circumstances presented, Zaslow could sue Kroenert for selling goods that didn’t belong to her. i. Since the objects/items were at a complete loss, being out of Kroenert’s possession, one can make the argument that she incurred a substantial interference against Zaslow and therefore would potentially incur a damage suit covering the total value of the items and inconvenience experienced by Zaslow as well. ii. Under the Bona Fide Purchasers rule, “A person who obtains property through theft or fraud is liable for conversion. So is one who later acquires the goods with notice of their illegitimate origin 1. It truly depends on how the items were acquired/procured but “a thief has no title to stole property and can pass no rights to a subsequent part. Hence a subsequent bona fide purchaser who pays full value is a converter…” therefore, both Lefty’s and Buddy can be held liable for conversion 8. a. 9. 10. Assume that Ms. Kroenert induces Mr. Zaslow to sell (i.e., “trade”) his living room, dining room, and bedroom furniture (with a fair market value of $3,500) to her in exchange for a Georgia O’Keefe painting owned by Kroenert entitled “Decomposed Cow Parts on the Prairie.” Although Kroenert knew that the painting was a forgery and virtually worthless, Zaslow was unaware of Kroenert’s deception. Kroenert sells the furniture to Jones, but Jones has no idea of the swindle that Kroenert pulled on Zaslow. Could Zaslow sue Jones for conversion? What if Kroenert bragged to Jones about the details of how she “pulled one over on that sap, Zaslow”? Under what circumstances does destruction or removal of a part of a chattel result in conversion of the entire chattel rather than merely conversion of the part? For example, if you steal a tire, do you convert the car? a. The removal of the tire, causes the vehicle to cease functioning as a vehicle. The car won’t drive down the road if the there are only three wheels i. Therefore if there is a destruction or removal that causes impairment or discontinuation, then the situation is considered a conversion rather than Trespass to Chattels. ii. THIS IS NOT CONVERSION BECAUSE ONE CAN BUY A NEW TIRE AND HAVE IT FULLY FUNCTIONING AGAIN. 1. CONVERSION when the vehicle is converted to a level unfixable by the How can you explain the court’s rejection in Russell-Vaughan Ford, Inc. v. Rouse of the argument that “there was no conversion of since the plaintiff could have called his wife, at home, who had another set of keys”? Why did the court find it important to impose liability for conversion rather than trespass to chattels? a. The court found nothing in their cases which would “require the plaintiff to exhaust all possible means of gaining possession of a chattel which is withheld from him by the defendant, after demanding its return.” i. The customer didn’t need to call his wife to get keys that were with him when he originally arrived at the dealership. His rights were removed from acquiring the vehicle and it was converted appropriately 1. In Compton v. Sims [96 So. 185 (Ala. 1923)] a. After an individual demanded the keys to his automobile the in possession, decided to withhold them from the ’s persons and the court decided that without the keys, he could not move the vehicle, which amounted to a conversion of the automobile. i. “conversion may consist, not only in an appropriation of the property to one’s own use, but in its destruction, or in exercising dominion over it in exclusion or defiance of plaintiff’s right…” p.123 11. In Kremen v. Cohen, suppose that Network Solutions had not transferred the name “sex.com” to another person, but simply lost the records of the registration. As a result, another person was allowed to register and use the name for commercial benefit. Would Network Solutions be liable for conversion? a. Although pulled from a case battle over the possession of human tissue, Moore v. Regenst of the Univer. Of Cal, 793 P.2d 479 concluded that “To establish a conversion, [a] plaintiff must establish an actual interference with his ownership or right of possession…” p.132 i. In this case, Network Solutions could possibly argue that Kremen would not have had the chance to establish a right of possession because the ownership was never established. Therefore, preventing Kremen from seeking charges of conversion against their persons. 12. What is a bailee? What rules have developed regarding bailees and conversion? a. A bailee is an individual who is temporarily holding goods belong to others b. Rules protecting bailees against conversion i. A bailee without notice that a chattel is lost or stolen is not liable for conversion merely by reason of receiving it ii. A bailee who, without notice of other claims, redelievers a chattel to its bailor is not liable for conversion, even though the bailor is not the rightful possessor iii. A bailee who redelivers a chattel to one entitled to immediate possession is not liable to the actual bailor for conversion c. Rules holding bailees responsible for conversion i. A bailee with knowledge or reason to know that the bailor has no right to deliver the chattel becomes liable for conversion by receiving the goods ii. A bailee with notice of multiple claims to a chattel is under an absolute duty to redeliver the chattel to its true owner. (the bailee’s difficulty may be avoided by a relatively simple procedure whereby, pursuant to statute, the bailee deposits the goods in court and asks the court to resolve the dispute) 13. Look at the case caption for Kremen. What type of court is the United States Court of Appeals for the Ninth Circuit?2 What makes this a “federal case”? a. The United States Court of Appeals for the Ninth Circuit is known for being “the first federal courts designed exclusively to hear cases on appeal from trial courts. In an effort to relieve the caseload burden in the Supreme Court and to handle a dramatic increase in federal filings, Congress, in the Judiciary Act of 1891, established nine courts of appeals, one for each judicial circuit.” (http://www.fjc.gov/history/home.nsf/ca_frm!OpenFrameSet)