Opinion ID: 2299356
Heading Depth: 2
Heading Rank: 2

Heading: Conversion of the Ashmere Corporate Shares

Text: Stock certificates are one example of documents into which intangible property rights, corporate shares, typically merge. Thus, an improper exercise of ownership or dominion over shares of a corporation is subject to a conversion claim. Shipley v. Meadowbrook Club, Inc., 211 Md. 142, 150, 126 A.2d 288, 292 (1956); Jones v. Ortel, 114 Md. 205, 214-15, 78 A. 1030, 1033 (1910); Restatement (Second) of Torts § 242 cmt. b; Keeton, supra, § 15, at 91. Neither petitioners nor respondent, however, have alleged that respondent exercised dominion over the Ashmere Corporation stock certificates. As stated, supra, we do not recognize a claim for the conversion of intangible property rights merged into a document when the defendant has not exercised ownership or dominion over that document. We note that in United Leasing Corp. v. Thrift Ins. Corp., 247 Va. 299, 440 S.E.2d 902 (1994), and Southern Cellular Telecom, Inc. v. Banks, 208 Ga.App. 286, 431 S.E.2d 115 (1993), neither plaintiff ever received control over tangible, valid stock certificates representing the intangible corporate shares in which they claimed an interest. Thus, neither plaintiff could sue for tortious conversion of those shares. Also adopting this analysis is Beck v. American Sharecom, Inc., 514 N.W.2d 584 (Minn.Ct. App.1994). The plaintiff in Beck sued for conversion of the shares of stock he never received under his employment contract. Noting that the plaintiff was not given possession of any of [the] shares and there was no transfer or delivery of shares to the plaintiff, the Minnesota Court of Appeals held that the conversion claim should not have gone to the jury. Id. at 589. In the case sub judice, none of the pleaded facts allege that any tangible documents in this case have passed into the control of respondent. Thus, based on the allegations of the complaint, a conversion was not alleged and no facts before the trial court sufficed for it to find that the claims were for conversion.