Chapter 15 - § 15.7 • REMEDIES

• Jurisdiction: Colorado

§ 15.7 • REMEDIES

Generally, damages for conversion are the value of the converted property at the time and place of the misappropriation, plus legal interest from the time of conversion to the time of trial.⁷² Conversion is not a continuing tort.⁷³ Actual damages for conversion include both noneconomic and economic damages.⁷⁴ Damages for conversion may include lost profits resulting from the conversion, provided the plaintiff shows his or her mitigation of such damages where such mitigation is possible.⁷⁵

If the defendant's taking of property is conducted in a manner that constitutes a wanton disregard for the plaintiff's rights, exemplary damages may also be available, even if the taking is allegedly done under a mistaken claim of right.⁷⁶ Likewise, if surrounding circumstances demonstrate that the taking was wrongful and accomplished with reckless disregard of the plaintiff's rights and feelings, or involved circumstances of fraud, exemplary damages may be available.⁷⁷

In Colorado, exemplary damages are governed by statute.⁷⁸ The statute provides that where a jury assesses damages for "a wrong done to the person or real property, and the injury complained of is attended by circumstances of fraud, malice, or willful and wanton conduct," the jury may award exemplary damages so long as they do not "exceed an amount which is equal to the actual damages awarded . . . ."⁷⁹ Exemplary damages may be trebled if, while the action is pending, the defendant: (1) continues or repeats the behavior that is the subject of the claim in a willful and wanton manner; or (2) acts in a willful and wanton manner that further aggravates the plaintiff's damages when the defendant knows or should know that his or her action would produce aggravation.⁸⁰

"Willful and wanton conduct" is defined in the statute as "conduct purposefully committed which the actor must have realized as dangerous, done heedlessly and recklessly, without regard to consequences, or of the rights and safety of others, particularly the plaintiff."⁸¹ Exemplary damages may only be awarded when the party asserting the claim proves beyond a reasonable doubt the commission of a wrong under the circumstances set forth in the punitive damages statute.⁸²

The statute provides that a claim for exemplary damages may not be included in any initial claim for relief and is only allowed by amendment to the pleadings after the exchange of initial disclosures pursuant to C.R.C.P. 26 and the plaintiff establishes prima...