Statutory conversion; MCL 600.2919a; Costs & treble damages; Investigatory expenses; “Result”; Attorney fees; Sufficiency of proofs

The court held “that MCL 600.2919a does not alter the common-law measure of damages for conversion aside from authorizing a multiplied recovery. Because investigatory expenses incurred in uncovering or responding to a conversion fall outside that measure, they are not recoverable under the statute and may not be trebled.” It further concluded that plaintiff-law firm “failed to substantiate both its claimed investigatory expenses and its request for attorney fees.” Thus, the court held that while it affirmed “the award of treble damages as to the documented pecuniary losses, [it reversed] the award of trebled investigatory expenses as not authorized by statute, [vacated] the awards for investigatory expenses and attorney fees as inadequately substantiated, and remanded[.]” The case involved defendant-law firm employee who charged “tens of thousands of dollars in personal purchases to the firm’s credit cards.” She first challenged the trial court’s decision to treble plaintiff’s investigatory expenses. “Under MCL 600.2919a, a person harmed by another’s theft, embezzlement, or conversion may recover three times the amount of ‘actual damages sustained, plus costs and reasonable attorney fees.’” The court held “that the statute leaves the common-law measure of damages for conversion unchanged, except to authorize a multiplied recovery. Because investigatory expenses incurred in uncovering or responding to a conversion fall outside that measure, they are not recoverable as ‘actual damages’ under the statute and cannot be trebled.” Defendant also challenged “the sufficiency of plaintiff’s proofs supporting both the $100,000 in investigatory expenses and the $100,000 attorney fee award.” The court held “that plaintiff failed to substantiate its claimed investigatory expenses and attorney fees with adequate proof.’” Finally, it found that defendant, “as the prevailing party, may tax costs under MCR 7.219(A).”