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California Cannabis Claims: Conversion

We’re back with the newest part in our series on common California cannabis claims. Today, we’ll be covering one we often see in the context of buyer v. seller disputes: conversion.

How does California define a conversion claim?

The technical definition of conversion is “the wrongful exercise of dominion over the personal property of another.” It essentially means that the defendant interfered with the plaintiff’s right to possession of tangible property (not including real property). If a conversion claim is found, the plaintiff is entitled to recover the full value of the property. The plaintiff may also be entitled to punitive and other additional damages in certain contexts (more on that below). As I mentioned above, we typically see this claim pop up when a seller provides product to a buyer but doesn’t get paid – since the seller hasn’t received the benefit of the bargain, the buyer’s continued possession of the product could form the basis of a California cannabis claim for conversion.

Statute of limitations

The statute of limitations for conversion is three years. This means the claim needs to be filed within three years of the wrongful taking. There are exceptions to this rule though. First, if

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