As a business owner, it can be difficult to know where to start when you’ve been stolen from.
A civil theft action creates civil liability for state crimes such as theft, robbery, larceny, fraud, and embezzlement. Civil theft has broad applications to situations where a plaintiff’s “property” has been altered or stolen.
“Property” for the purposes of civil theft refers to “anything of value” including:
- real property;
- the things growing on, affixed to, and found on your land;
- tangible personal property;
- intangible personal property like rights, privileges, interests, and claims; and
- services.
Fla. Stat. 812.012 § (4).
Remember that a civil theft applies to both tangible AND intangible property. While the list below is nonexhaustive, you may be surprised by the range of items that can be used as the basis for a civil theft action!
TANGIBLE PROPERTY | INTANGIBLE PROPERTY |
| Construction materialsMoney CropsFurnitureFixturesComputersMachineryEquipmentOffice supplies Services already performedCash registersSignageVehiclesProduct stock | LogosDesignsBrand namesCompany secretsLicensesPatentsFranchisesProgramsCustomer listsTechnical dataIndustry knowledgeStudiesEstimatesMusical or artistic compositions |
WHEN DOES CIVIL THEFT APPLY?
Based on the definition of “property” and the items as outlined above, it’s easy to see how civil theft applies to a wide array of business contexts.
Some of the most common circumstances where a civil theft action may be necessary is when there is an overbilling of services, surplus funds under factoring agreements, mismanagement of funds by investment companies.
A business owner may also pursue a civil theft action where a defendant has stolen items from a physical location or misappropriated trade secrets.
Basically: if your property was stolen or altered in some way, you may be entitled to a civil theft action!
HOW DO I PROVE CIVIL THEFT?
To assert a civil theft action, a party must first prove the statutory elements of theft. In other words, this means you or your business actually owned property that was then taken by a defendant.
The second step to asserting a civil theft is proving criminal or felonious intent. This means that the defendant who took the property did so with that knowledge that it belonged to you or your business.
WHY USE CIVIL THEFT?
If you are a business owner suffering from some form of theft, pursuing a civil theft action is an important and under-utilized step in your recovery process.
Many business owners feel that pursuing small claims or other thefts may not be worth the time or money. However, a civil theft action not only allows you to reclaim your property but you can also recover damages and retrieve attorney’s fees in the process!
Some other potential outcomes for a civil theft action include:
- treble damages, meaning that you could receive up to three times the actual damages;
- potential recovery of other damages that are independent from those arising out of a contract; and
- recovery of damages outside of contractual relationship.
As a result, a civil theft action presents a lucrative award scheme for the successful business owner.
IS CIVIL THEFT ALWAYS APPROPRIATE?
Not every situation is civil theft! You must carefully consider whether a civil theft action is right for you.
For example, simple breach of contract likely would not be considered civil theft and would not entitle you to these heightened damages.
If no substantial fact or legal support backs your claim, then the defendant can also claim attorney’s fees and costs!
THAT’S A LOT – WHERE DO I START?
The first step is to work with an attorney to assess whether or not a civil theft action applies to your situation and proceed accordingly.
The attorney will then begin by drafting and issuing a civil theft letter.
A civil theft letter acts as a “pre-suit notice” and serves as a as a written demand for damages for which the defendant may be liable for. Fla. Stat. § 722.11.
This letter provides 30 days for the defendant to comply or face litigation.
The key to a successful civil theft claim is the thorough review of the facts with your attorney and a clear presentation of these facts in your civil theft letter.
Reach out to us if you believe you or your business are entitled to a civil theft action.
