LEGAL PRINCIPLE: TORT LAW — Conversion — Wrongful Payment of Crossed Cheque as Conversion
PRINCIPLE STATEMENT
The tort of conversion is committed when the person entitled to possession of a chattel is permanently deprived of that possession and the chattel is converted to the use of someone else.
RATIO DECIDENDI (SOURCE)
Per Mohammed, JSC, in Trade Bank Plc v. Benilux (Nig.) Ltd (2003) NLC-1862000(SC) at p. 6; Paras C–D.
"The tort of conversion is committed when the person entitled to the possession of a chattel is permanently deprived of that possession and the chattel is converted to the use of someone else."
EXPLANATION / SCOPE
Conversion requires permanent deprivation of possession and use by another. The principle applies to tort law. A cheque is a chattel for conversion purposes. The rule protects property rights. The plaintiff must prove the elements. The principle is well-established.