Legal Definitions - innocent converter

An innocent converter is an individual or entity who takes possession of, uses, or disposes of another person's property, believing they have a legal right to do so, but without the true owner's permission. Despite their lack of wrongful intent or knowledge that they are interfering with someone else's property rights, their actions still constitute a legal wrong known as conversion. The "innocent" aspect refers to their genuine, but mistaken, belief that their actions were lawful.

• Example 1: Unknowing Purchase of Stolen Goods

  A small vintage clothing boutique owner purchases a unique, antique fur coat from a seemingly reputable seller at a local estate sale. The seller provides a convincing story about inheriting the coat and needing to downsize. The boutique owner, believing the seller is legitimate and the coat is rightfully theirs to sell, displays it prominently in their shop. Unbeknownst to the boutique owner, the coat had actually been stolen from a private collection a week prior.

  Explanation: The boutique owner is an "innocent converter" because they took possession of and intended to sell the coat (an act of conversion) without any knowledge that it was stolen. They genuinely believed they had a right to the coat, but their actions interfered with the true owner's property rights.

• Example 2: Processing Materials for a Fraudulent Client

  A custom furniture workshop receives a large shipment of rare, imported lumber from a new client, "Elite Designs Co.," with instructions to craft a bespoke dining table. The workshop processes the lumber, cuts it, and begins assembly according to the client's specifications. Later, it is discovered that "Elite Designs Co." had fraudulently obtained the lumber from a supplier on credit and did not actually own it. The true owner of the lumber demands its return from the workshop.

  Explanation: The custom furniture workshop acted as an "innocent converter." They took possession of and altered the lumber (an act of conversion) in good faith, believing "Elite Designs Co." was the rightful owner and had the authority to commission the work. They had no knowledge of the fraud, yet their actions interfered with the true owner's rights to their property.

• Example 3: Mistakenly Taking Identical Property

  A person attends a busy yoga class and, upon leaving, mistakenly picks up a high-end yoga mat bag from the cubby area, believing it to be their identical-looking bag. They take it home and use it for a few days before realizing it's not theirs due to a small, unique stitching pattern on their actual bag that is missing from the one they took. The true owner of the bag reports it missing to the studio.

  Explanation: The person who took the yoga mat bag is an "innocent converter." They took possession of and used the bag (an act of conversion) under the genuine, but mistaken, belief that it was their own property. They had no intent to steal, but their actions deprived the true owner of their property, even if temporarily.