CHAPTER 6: TORT LAW 23
What is PayPal, information and how can it be the subject of a conversion? PayPal provides an
intermediary account for online purchases. PayPal charges the seller a fee for its service. Customers fund their
conversion.
Does the holding in this case mean that any transaction involving a credit card that leads to a dispute
is subject to a cause of action for conversion? No, the holding in this case does not mean that any transaction
involving a credit card that leads to a dispute can be subject to a cause of action for conversion. In this case, the court
Footnote 16: As a man carrying a package tried to board a moving train from a crowded station platform,
railroad employees on the train and the platform tried to help him. The man dropped his package, which contained
fireworks, and it exploded. The explosion caused scales on the platform to fall on Mrs. Palsgraf, injuring her. She
sued the railroad. The court found that the railroad employees were negligent in their conduct toward Palsgraf, who
was awarded damages. The railroad appealed.
In Palsgraf v. Long Island Railroad Co., the New York Court of Appeals dismissed Palsgraf’s complaint.
The question before the court was: Does the duty of care extend only to those who may be injured as a result of a
foreseeable risk, or does it extend also to a person who is outside the zone of danger and whose injury could not
What economic reasons are there for not awarding damages to Palsgraf? Who should bear the loss
in this and similar situations—the business or the injured party? What is a “zone of danger”?
Is the question underlying a determination of proximate cause one of social policy or economic
policy? That is, are courts (and plaintiffs) often looking only for someone to pay for an injury or damage and
thus assess liability on the basis of who can most easily pay? If so, does this mean that the individual who
has no assets and no insurance is likely to avoid liability?
The Long Island Railroad carried millions of passengers each year, and many of those passengers brought
packages onto the train. Should the New York Court of Appeals that the harm to Mrs. Palsgraf was not