Conversion as a Tort Under Texas Law: What It Is and Why It Matters

When most people think of “theft,” they think of criminal charges—police reports, prosecutors, and criminal courts. But in Texas, there is also a civil remedy for theft-like conduct: the tort of conversion. Conversion provides a powerful tool for individuals and businesses to recover the value of property that has been wrongfully taken, withheld, misused, or destroyed.

If you're dealing with a situation where someone is holding your property hostage, refusing to return it, or using it in a way that violates your rights, conversion might be the claim that brings relief.

What Is Conversion?

Under Texas law, conversion is the wrongful exercise of control over someone else’s personal property, inconsistent with the rightful owner’s ownership or possessory rights.

In plain English:
If the property belongs to you, and someone else takes it, uses it, or refuses to return it without your authorization—they may have committed conversion.

Elements of Conversion in Texas

To prevail on a conversion claim, a plaintiff must prove:

1. The plaintiff owned or had the right to possess the property;
2. The defendant wrongfully exercised dominion or control over it;
3. The defendant’s actions were inconsistent with the plaintiff’s rights; and
4. The plaintiff suffered damages as a result.

Importantly, conversion applies only to tangible personal property—not real estate, and typically not purely intangible rights unless they are merged with a document (e.g., a stock certificate).

Examples of Conversion in Everyday Disputes

Here are common Texas-based scenarios where conversion may arise:

• A contractor refuses to return tools or materials after a project ends.
• A business partner keeps company property after withdrawing from the business.
• A tenant takes appliances or fixtures when moving out of a leased space.
• A mechanic performs unauthorized work and holds a vehicle hostage.
• A family member removes property from an estate before probate is opened.

In each situation, the wrongdoer is exercising control over property in a way that violates the owner’s rights.

Demand Letters and the “Refusal to Return” Requirement

Texas courts often look at whether the defendant refused to return the property after demand.

A proper demand letter serves two purposes:

1. It gives the defendant a chance to return the property;
2. It creates a clear record of refusal, strengthening a conversion claim.

Refusal after a proper demand is strong evidence of wrongful dominion.

Damages in a Conversion Case

Damages in a Texas conversion action typically include:

1. The fair market value of the property at the time of conversion

This is often the primary measure of recovery.

2. Interest

Courts may add prejudgment interest from the date of conversion.

3. Consequential damages

If the conversion caused additional financial harm—such as lost business opportunities, rental expenses, or replacement costs—those may also be recoverable.

4. Exemplary (punitive) damages

If the defendant acted maliciously, fraudulently, or with gross negligence, punitive damages may be available.

Is Conversion the Same as Civil Theft?

Not quite.
Texas also recognizes a statutory cause of action for civil theft under the Texas Theft Liability Act (TTLA), which allows:

• Treble damages,
• Attorney’s fees, and
• Court costs.

Conversion is more traditional and focuses on the fair market value and loss incurred. TTLA claims, however, require proof of criminal-level conduct as defined in the Penal Code. In many lawsuits, both claims are pled together.

Defenses to Conversion

Common defenses under Texas law include:

• Consent
• Abandonment by the owner
• Lack of ownership rights
• Mistaken possession without wrongful intent
• Statute of limitations (generally two years)

Even so, wrongful retention after a demand letter usually eliminates many defenses.

Why Conversion Matters

Conversion is a flexible and powerful tort. It:

• Allows property owners to quickly recover losses;
• Applies to a wide range of personal property disputes;
• Does not require proof of criminal intent;
• Pairs well with other civil claims such as breach of contract, fraud, or TTLA violations.

For individuals, families, and businesses, conversion provides a civil pathway to justice when someone takes or keeps what doesn’t belong to them.

At David C. Barsalou, Attorney at Law, PLLC, we help clients navigate business, family, tax, estate planning, and real estate matters ranging from document drafting to litigation with clarity and confidence. If you’d like guidance on your situation, schedule a consultation today. Call us at (713) 397-4678, email barsalou.law@gmail.com, or reach us through our Contact Page. We’re here to help you take the next step.