Chapter 9-4 Conversion of Real Property

• Jurisdiction: United States

9-4 Conversion of Real Property

9-4:1 Overview

A defendant converts personal property when he exercises an unlawful control and dominion over that property to the exclusion of and inconsistent with the property's rightful possessor.²⁰ However, Texas courts have clearly stated that an action only lies when the defendant converts personal property.²¹

9-4:1.1 Related Causes of Action

Oil and Gas Litigation: Conversion, Business Tort Litigation: Conversion, Trespass to Real Property

MUST READ CASES

Cage Bros. v. Whiteman, 163 S.W.2d 638 (Tex. Comm'n App. 1942)

Lucio v. John G. & Marie Stella Kenedy Mem'l Found., 298 S.W.3d 663 (Tex. App.— Corpus Christi 2009, pet. denied)

9-4:2 Expressly Rejected in Texas

The Texas Commission of Appeals impliedly rejected a cause of action for conversion of real property.²² Recent courts of appeals decisions have expressly rejected such a cause of action.²³ The correct cause of action to bring in such a situation is a trespass to real property cause of action.²⁴ Some minerals, once removed from the mineral estate, become personal property and may be converted.²⁵

¹⁸ Morgan Stanley & Co., Inc. v. Tex. Oil Co., 958 S.W.2d 178, 179 (Tex. 1997) ("[A] person must be a stranger to a contract to tortiously interfere with it."); Prudential Ins. Co. of America v. Financial Review Servs., Inc., 29 S.W.3d 74, 79 (Tex. 2000)

¹⁹ E.g., San Saba Energy, L.P. v. McCord, 167 S.W.3d 67, 73 (Tex. App.—Waco 2005, pet. denied); Grizzle v. Tex. Commerce Bank, N.A., 38 S.W.3d 265, 284-85 (Tex. App.—Dallas 2001), rev'd in part on other grounds, 96 S.W.3d 240 (Tex. 2002); Deaton v. United Mobile Networks, L.P., 926 S.W.2d 756, 760-61 (Tex. App.—Texarkana 1996), rev'd on other grounds, 939 S.W.2d 146 (Tex. 1997); MMR Int'l Ltd. v. Waller Marine, Ltd., No. H-11-1188, 2013 WL 3864271 (S.D. Tex. 2013).

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Notes:

^[20] Smith v. Maximum Racing, Inc., 136 S.W.3d 337, 341 (Tex. App.—Austin 2004, no pet.).

^[21] E.g., Cage Bros. v. Whiteman, 139 Tex. 522, 526, 163 S.W.2d 638, 641 (Tex. [Comm'n Op.] 1942); Lucio v. John G. & Marie Stella Kenedy Mem'l Found., 298 S.W.3d 663, 672 (Tex. App.—Corpus Christi 2009, pet. denied); Lighthouse Church of Cloverleaf v. Tex. Bank, 889 S.W.2d 595, 599 n.4 (Tex. App.—Houston [14th Dist.] 1994, writ denied).

^[22] Cage Bros. v. Whiteman, 163 S.W.2d 638, 641 (Tex. Comm'n App. 1942).

^[23] E.g., Lucio v.John G. & Marie Stella Kenedy Meml Found., 298 S.W.3d 663, 672 (Tex. App.— Corpus Christi 2009, pet. denied); Lighthouse Church...