| October, 1999 - Vol. 6, No. 5 | i |
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You are asking . . . Q.
Can a financial institution be held liable for the tort
of conversion even though they rightfully came into possession
of the property? A. Yes. The tort of conversion may be defined as "the wrongful exercise of dominion over the property of another in a manner inconsistent with or in defiance of the rights of the owner." See Dairy Dept of North Dakota v. Harvey Cheese Inc., 278 N.W.2d 137, 144 (N.D. 1979). Hence, the focus is on the exercise of control, not the taking. "Conversion is not the acquiring of Complaintant's property, but in wrongfully depriving him of it." Christensen v. Farmers State Bank of Richardton, 157 N.W.2d 352, 357 (N.D. 1968). Conversion may occur where a party rightfully comes into possession of property but refuses to return it upon demand. Dairy Dept, 278 N.W.2d at 144.
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