B & L FURNITURE CO. v. Transamerica Insurance Co.

The only issue presented in this case is whether an act of conversion by an insured constitutes “property damage * * * caused by an occurrence” under plaintiff’s liability policy with the defendant insurance company.

The facts have been stipulated. The plaintiff sold various items of furniture to a purchaser under a conditional sales contract. The plaintiff repossessed the furniture. The purchaser brought an action for conversion against plaintiff seeking $500 general damages and $5,000 punitive damages. The defendant refused to defend the conversion action, and the trial resulted in a…