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05 July 2007 / Gregory Mitchell
Issue: 7280 / Categories: Features , Commercial
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Economic tort (2)

Should the tort of conversion apply to intangible property? Gregory Mitchell QC investigates

The tort of conversion is increasingly significant in the electronic world where intangible rights are held for their true “owners” without being evidenced or comprised in a piece of paper or other chattel such as a cheque or certificate. The majority (three) of the law lords in OBG v Allan Ltd [2007] UKHL 21, [2007] All ER (D) 44 (May) held that the tort of conversion is limited to chattels only. Intangible rights can be converted only so far as those rights are sufficiently connected with a chattel and where rights of ownership in the chattel are usurped. There was a powerful minority view from Lord Nicholls and Baroness Hale that English law should be extended.

BACKGROUND

In OBG the defendants were appointed in June 1992 over a company as administrative receivers. They took possession of the company’s assets and assumed the right to manage its business. The company had circa 88 different contracts with one major customer under which there

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NEWS
The Attorney General, Ellie Reeves KC MP, and Solicitor General, Andy Slaughter KC MP, marked the 25th anniversary of Pro Bono Week by joining lawyers, charities, students and parliamentarians at events celebrating voluntary legal work
Witness evidence can be compromised by AI before a solicitor sees the draft, leaving safeguards focused on authorship incomplete
Possession claims are entering a new digital era, with procedural traps awaiting practitioners who assume familiar rules still govern every step
A polished legal defence may owe more to artificial intelligence than legal merit—and creditors risk paying the price in delay and expense
An indemnity costs battle with a £20m gap could reopen an important question: what weight should an approved budget carry?
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