Paralegal Advanced Competency Exam (PACE) Practice Exam

What type of damages can be pursued in a conversion action?

1. Emotional distress damages

2. Punitive damages

3. Actual damages resulting from the loss of property

4. Legal fees incurred during litigation

The correct answer is: Actual damages resulting from the loss of property

In a conversion action, the primary goal is to seek compensation for the wrongful possession or interference with a person's property. The correct answer focuses on actual damages, which are intended to make the plaintiff whole by covering the loss of property that resulted from the conversion. This includes the market value of the property at the time of the conversion, as well as any other losses incurred directly because of that wrongful act. Emotional distress damages, while relevant in other types of legal claims, generally do not apply to conversion because the focus is primarily on property rights rather than personal emotional harm. Punitive damages, which aim to punish the wrongdoer rather than compensate the victim, may be available in some circumstances, but they are not the primary type of damages sought in a standard conversion claim. Legal fees incurred during litigation can be addressed separately through different legal doctrines or statutes, such as in cases where statutes allow for recovering attorney’s fees, but they are not a direct form of damages tied to the conversion itself. Thus, the emphasis in a conversion action is appropriately placed on actual damages resulting from the loss of property, making that the most fitting choice.