Legal Question in Business Law in California

Re: car theft

OK, interesting question. Let me discuss the area in general......

First, as you recognize, it is possible for a business corporation to be convicted of certain crimes separately from its human directors, officers, etc., and there may be instances where a corporation has been found guilty of grand theft. In my experience it is far more usual for prosecutors to bring charges against the culpable humans (president, directors, etc.) than the corporation itself. There are several reasons, including (1) the humans can be sent to prison, and (2) finding and convicting individuals prevents unintended consequences of punishment from falling upon innocent employees, stockholders, etc. as might happen if the entire corporation were punished.

This is not to say that corporations aren't often penalized with fines, license revocations and the sort on account of misconduct, criminal or civil.

Next, it looks to me as though the separate crime of 'grand theft auto' no longer exists in California (former Penal Code section 484h). Instead, the same acts would either come under Penal Code section 484 (Grand Theft Defined) or Vehicke Code section 10851(a), Theft and unlawful driving or taking of a vehicle. See also Penal Code sections 484 (Theft Defined) and 486 (Theft, Degrees).

Next, while I don't know any of the facts pertinent to the possible theft to which you refer, if the matter concerns a dealer tampering with a car buyer's, lessor's or service customer's right to possession of a purchased, leased or repaired vehicle, the matter may more properly be treated as a civil matter, i.e. conversion (a tort) rather than theft (a crime). I know of at least two cases where car dealers were found liable for the conversion of customer-owned or leased vehicles.

Civil matters such as torts may be taken to court by the affected citizen as plaintiff. In criminal cases, the People are always the plaintiff and are represented by the district attorney. While private citizens can attempt to stir up the DA's interest in prosecuting a matter by filing a police report or contacting the DA's office and requesting an investigation (often referred to as 'pressing charges'), only the DA (or a grand jury) can make prosecutorial decisions.

The impact of a criminal conviction of either the dealership or its insiders would have a profound negative effect on its sales, reputation, licenses, franchises and insurance costs, I think.

Losing a civil action for conversion would be embarrassing and costly, but the effects would be less serious.

If you have more facts to share with me, please contact me and I can perhaps expound further on these basic thoughts.