MARY BETH KELLY, J.
By 2005 PA 44, the Legislature amended MCL 600.2919a(1)(a) to create a cause of action against someone "converting property to [that] person's own use." In this case, we consider whether this statutory language is coextensive with the common-law tort of conversion or, if not, what additional conduct is required to
We hold that "converting property to [that] person's own use," as used in MCL 600.2919a, is not coextensive with common-law conversion. By enacting MCL 600.2919a, the Legislature intended to create a separate statutory cause of action for conversion "in addition to any other right or remedy" a victim of conversion could obtain at common law.
In this case, plaintiff proffered evidence at trial that would allow the jury to conclude that defendant used the wine for some purpose personal to defendant's interests. As a result, the circuit court erred by granting defendant's motion for directed verdict on this claim. We affirm the judgment of the Court of Appeals and remand this case to the Kent Circuit Court for further proceedings consistent with this opinion.
Plaintiff, Aroma Wines & Equipment, Inc., is a wholesale wine importer and distributor. Defendant, Columbian Distribution Services, Inc., operates warehouses in Michigan. Starting in 2006, Aroma agreed to rent some of Columbian's climate-controlled warehouse space to store its wine while awaiting sale.
Aroma's sales declined sharply during 2008, and Aroma began falling behind on its monthly payments to Columbian. In January 2009, Columbian notified Aroma that it was asserting a lien on Aroma's wine and that Aroma could not pick up any more wine or ship any more orders until past due invoices were paid. In March 2009, Columbian released to Aroma a small portion of its wine in exchange for a $1,000 payment on Aroma's account. Notwithstanding this payment, Columbian asserted that Aroma had accrued a past-due balance of more than $20,000 on the account.
At some point during this dispute, and contrary to the terms of the contract, Columbian removed the wine from its climate-controlled space and transported it to an uncontrolled environment.
Aroma filed the instant suit in the Kent Circuit Court. Its second amended complaint alleged four separate causes of action: (1) breach of contract, (2) violation of the Uniform Commercial Code, (3) common-law conversion, and (4) statutory conversion under MCL 600.2919a(1)(a). As part of its statutory conversion claim, Aroma alleged that Columbian "converted [Aroma's] wine inventory to its own use" and sought treble damages for the alleged statutory conversion. In response, Columbian countersued for breach of contract based on Aroma's nonpayment of rent.
The case proceeded to trial. At the close of Aroma's proofs, Columbian moved for a directed verdict on Aroma's fourth count, the statutory conversion claim, arguing that Aroma had failed to provide any evidence to support its assertion that Columbian converted Aroma's wine to its own use. In support of the motion, Columbian emphasized that implicit in the definition of the word "use" is an inference limiting the definition to "using something for the purpose ... intended by the nature of the product or good." Aroma sought a broader interpretation of "use" that did not limit its scope to acts involving the wine's intended purpose but instead encompassed acts by which the converter exercised its dominion and control over the wine. Under this interpretation, then, Columbian could "use" Aroma's wine by asserting dominion and control over that wine as leverage in the dispute over the balance due Columbian. The court agreed with Columbian's interpretation of "use," concluded that "one would have to drink [the wine] or perhaps sell it" to use it, and granted Columbian's motion for a directed verdict on Aroma's statutory conversion claim.
Trial continued on Aroma's remaining counts and on Columbian's counterclaim. At the conclusion of the trial, the jury found that Columbian had breached its contract with Aroma and converted Aroma's wine, awarding Aroma damages totaling $275,000. The jury also found that Aroma did not breach its contract with Columbian and, as a result, did not offset the award granted to Aroma by any amount.
Aroma appealed the circuit court's decision to grant Columbian's motion for a directed verdict on Aroma's statutory conversion claim. The Court of Appeals reversed, holding that the circuit court's interpretation of "use" was too narrow.
As a result, the Court of Appeals remanded this case to the circuit court for such a jury determination.
Both parties then sought leave to appeal the Court of Appeals' interpretation of "own use." Aroma's appeal (Docket No. 148907) claimed that, like the circuit court, the Court of Appeals had erroneously defined statutory conversion as containing an additional element beyond those required to show common-law conversion. On this theory, and on the basis of the jury's finding of common-law conversion at trial, no further proceedings on the question of statutory conversion would be necessary and Columbian would be liable for statutory conversion. Columbian agreed with the Court of Appeals that statutory conversion requires a separate finding that the conversion was to the converter's "own use," but filed a separate application for leave to appeal (Docket No. 148909) that sought to reinstate the circuit court's narrower definition of "own use."
We granted both parties' applications for leave to appeal, limited to the single issue regarding "the proper interpretation of `converting property to the other person's own use,' as used in MCL 600.2919a."
We review de novo a trial court's decision on a motion for a directed verdict.
Under the common law, conversion is "`any distinct act of dominion wrongfully exerted over another's personal property in denial of or inconsistent with his rights therein.'"
We begin, then, with the text of MCL 600.2919a, which states in full:
Aroma's second amended complaint alleges that Columbian "converted [Aroma's] wine inventory to its own use" and that, as a result, MCL 600.2919a(1)(a) "applies to the facts of this case."
Nevertheless, that is only the beginning of our analysis of the phrase "converting property to the other person's own use." Aroma claims that the jury's verdict against Columbian for common-law conversion necessarily means that Columbian had violated its statutory counterpart, namely, MCL 600.2919a(1)(a). Under this theory, common-law conversion originated as "conversion to the other person's own use" and, as a result, the Legislature's use of the phrase "converting to the other person's own use" simply identified common-law conversion as, by itself, sufficient to establish a defendant's fault for purposes of MCL 600.2919a(1)(a). To assess the validity of this argument we turn to the history of common-law conversion.
According to Blackstone, several distinct actions in tort originated from the principle that "if an acquisition of goods by either force or fraud were allowed to be a sufficient title, all property would soon be confined to the most strong, or the most cunning" and all other people "could never be secure of their possessions."
Three distinct causes of action are relevant to our analysis. Each arose out of the distinct ways that a wrongful deprivation could occur. Someone who wrongfully took property was liable in trespass to the property owner.
Correspondingly, Blackstone explained the origin of trover as allowing the "recovery of damages against such person as had found another's goods, and refused to deliver them on demand, but converted them to his own use."
Nevertheless, "[a]lmost from the beginning... the effort was made to expand trover into the field of the wrongful detention of chattels [that were] not found."
Before the turn of the twentieth century, the meaning of conversion as originally understood at common law began to evolve. Justice COOLEY'S treatise on torts defined conversion as "[a]ny distinct act of dominion wrongfully exerted over one's property in denial of his right, or inconsistent with it...."
This Court's conversion caselaw bears out this development in the common law. Justice COOLEY'S 1874 decision for this Court in Kreiter v. Nichols involved the conversion of beer and emphasized that if
From this development in the common law, the scope of a common-law conversion is now well-settled in Michigan law as "`any distinct act of dominion wrongfully exerted over another's personal property in denial of or inconsistent with his rights therein.'"
These examples crystallize the common law's development over the centuries to encompass many different ways in which property may be converted, beyond the original meaning of finding lost property and converting that property to the converter's own use. In addition to the Restatement's example, this Court has held that a sheriff or court officer who unlawfully seizes personal property is, in the absence of governmental immunity, liable for conversion, even if he or she does so in the execution of a court order.
For most of Michigan's history, conversion was a tort for which the only redress was an action at common law. Indeed, when the Legislature first enacted what we now refer to as the statutory conversion remedy, in 1976, its terms did not provide a separate remedy against a converter. As originally enacted, MCL 600.2919a stated:
In interpreting this now-defunct provision, the Court of Appeals has explained that, initially, MCL 600.2919a was not "designed to provide a remedy against the individual who has actually stolen, embezzled, or converted the property."
In 2005, the Legislature amended MCL 600.2919a to its present language.
The historical analysis of the common-law tort of conversion discussed earlier shows that Michigan law's understanding of conversion shifted away from requiring an additional showing that the conversion occurred for the other person's "own use" and toward allowing a property owner to recover for any act of dominion inconsistent with that person's rights in that property. This shift in the common law occurred long before the Legislature's
The Court of Appeals did not specifically address whether an additional element is required to transform common-law conversion into conversion to the other person's "own use" pursuant to MCL 600.2919a(1)(a). However, implicit in its analysis is that a plaintiff seeking treble damages pursuant to § 2919a(1)(a) must "present[ ] evidence that the conversion was to defendant's `own use' as required by MCL 600.2919a(1)(a)."
The word "use" is one of the most common words in the English language
Columbian proffered, and the circuit court adopted, a narrow definition of "use" focused on the intended purpose of the converted property, such as the definition of the word as "habitual or customary usage" quoted above. Under this definition, to convert Aroma's wine to Columbian's "own use" means that "one would have to drink it or perhaps sell it."
In reversing the circuit court's decision, the Court of Appeals held that "the definition of `use' encompasses a much broader meaning" than the circuit court's definition allows.
The Court of Appeals thus implicitly acknowledged the placement of the word "use" within MCL.600.2919a(1)(a). In particular, the word "own" modifies "use," suggesting that any use of the converted property must be intentionally geared toward a purpose personal to the person converting the property. When examining the phrase "own use" in this light, it becomes clear that the Legislature did not seek to restrict the application of MCL 600.2919a(1)(a) on the basis of the intended or common purpose of the converted property. Rather, the only restriction to the application of MCL 600.2919a(1)(a) to a common-law conversion offense is that it must be used for a purpose personal to the converter. Therefore, we agree with the Court of Appeals' definition of "use" and hold that conversion "to the other person's own use" requires a showing that the defendant employed the converted property for some purpose personal to the defendant's interests, even if that purpose is not the object's ordinarily intended purpose.
This broad definition of "own use" finds support in our early conversion caselaw. As explained earlier, in Kreiter, this Court held that conversion to someone's own use need not be geared toward the intended purpose of the converted property and held that a converter of beer was liable regardless of whether he or she "destroyed [it] from a belief in its deleterious effects, or made way with [it] in carousals or private drinking."
Accordingly, we agree with the Court of Appeals that someone alleging conversion to the defendant's "own use" under MCL 600.2919a(1)(a) must show that the defendant employed the converted property for some purpose personal to the defendant's interests, even if that purpose is not the object's ordinarily intended purpose. We now turn to the specific evidence presented in this case to determine whether Columbian is entitled to a directed verdict on Aroma's statutory conversion claim.
In determining whether the circuit court properly granted Columbian's motion for a directed verdict on Aroma's statutory conversion claim, we reiterate that we are not making any factual determinations, only whether sufficient evidence has been presented for the fact-finder—in this case, the jury—to conclude that Columbian converted Aroma's wine to its "own use," that is, for some purpose personal to Columbian.
Moreover, Aroma proffered various e-mails between its owner and Columbian's employees to support its claim that Columbian limited Aroma's access to its wine during a period when Columbian declared Aroma's account to be delinquent. Furthermore, the Court of Appeals also observed that Aroma proffered evidence that, if believed, would allow a jury to conclude that Columbian "filled the temperature-controlled storage space ... with other customers' products."
Therefore, we affirm the Court of Appeals' conclusion that the circuit court erred when it granted Columbian's motion for a directed verdict on Aroma's statutory conversion claim. Aroma presented evidence during its case-in-chief that would allow a jury to find that Columbian converted Aroma's property to its own use within the meaning of MCL 600.2919a(1)(a). As a result, Columbian is not entitled to a directed verdict on Aroma's statutory conversion claim.
Although its language is rooted in common-law conversion, the tort established in MCL 600.2919a(1)(a) is not the same as common-law conversion. Rather, the separate statutory cause of action for conversion "to the other person's own use" requires a showing that the defendant employed the converted property for some purpose personal to the defendant's interests, even if that purpose is not the object's ordinarily intended purpose. Aroma has alleged facts that, if believed by a jury, would indicate Columbian's conversion of Aroma's wine for its own purposes. Therefore, we affirm the Court of Appeals' conclusion that Columbian is not entitled to a directed verdict on Aroma's statutory conversion claim and remand this case to the Kent Circuit Court for further proceedings consistent with this opinion.
YOUNG, C.J., MARKMAN, ZAHRA, McCORMACK, VIVIANO, and BERNSTEIN, JJ., concurred with MARY BETH KELLY, J.
Moreover, as a matter of statutory interpretation, Aroma's reading of the statute in light of the House legislative analysis is faulty on two levels. First, the language of the amended MCL 600.2919a is unambiguous and, as a result, the examination of legislative history "of any form" is not proper. In re Certified Question from the United States Court of Appeals for the Sixth Circuit, 468 Mich. 109, 115 n. 5, 659 N.W.2d 597 (2003). Second, even if legislative history were relevant to the interpretation of MCL 600.2919a, legislative analyses
Three of Aroma's cited cases concluded that no common-law conversion occurred, so they can only stand for the uncontroversial principle that common-law conversion is a threshold to conversion to the other person's own use. See Victory Estates, LLC v. NPB Mortgage, LLC, unpublished opinion per curiam of the Court of Appeals, issued November 20, 2012 (Docket No. 307457), 2012 WL 6913826; Paul v. Paul, unpublished opinion per curiam of the Court of Appeals, issued December 17, 2013 (Docket No. 311609), 2013 WL 6670832; Armstrong v. O'Hare, unpublished opinion per curiam of the Court of Appeals, issued April 22, 2014 (Docket No. 308635), 2014 WL 1614474. A fourth case, JP Morgan Chase Bank v. Jackson GR, Inc., unpublished opinion per curiam of the Court of Appeals, issued July 15, 2014 (Docket No. 311650), 2014 WL 3529088, simply held that treble damages are unavailable when no damages occurred in the first place or would not have even been contested. Other cases did not discuss the "own use" language of § 2919a(1)(a), presumably because the issue was not raised. See J. Franklin Interests, LLC v. Meng, unpublished opinion per curiam of the Court of Appeals, issued September 29, 2011 (Docket No. 296525); 2011 WL 4501841; Stockbridge Capital, LLC v. Watcke, unpublished opinion per curiam of the Court of Appeals, issued March 4, 2014 (Docket No. 313241), 2014 WL 860353.
Finally, Aroma cites J & W Transp., LLC v. Frazier, unpublished opinion per curiam of the Court of Appeals, issued June 1, 2010 (Docket No. 289711), 2010 WL 2178555, which bears examining in slightly more detail. There, the panel suggested a two-step process for determining whether a plaintiff could properly assert a statutory conversion claim because it observed that "defendants failed to return plaintiffs' property after demand had been made and used property in their possession without the authority to do so." Id. at *14 (emphasis added). As a result, this decision, far from supporting Aroma's theory of § 2919a, actually undercuts it. Nevertheless, none of the unpublished Court of Appeals opinions cited for Aroma's theory provides this Court with any meaningful analysis of § 2919a, because the issue has not been squarely presented to any appellate court until this case.