New York Court of Appeals Decision Arms Cybertheft Victims

In a decision issued March 22, 2007, the New York Court of Appeals for the first time applied the common-law doctrine of conversion to theft of electronic documents. Noting in its opinion that computers and electronically stored information are now “ubiquitous” in American society, the Court wrote, “We cannot conceive of any reason in law or logic why this process of virtual creation should be treated any differently from production by pen on paper or quill on parchment.” The decision represents a potentially powerful tool for plaintiffs in theft of information cases, as plaintiffs alleging conversion might be able to recover attorney’s fees, or, in egregious cases, even punitive damages.