What is the test for punitive damages in an action for breach of contract?

Civil Code section 3294, subdivision (a) provides: "In an action for the breach of an obligation not arising from contract, where it is proven by clear and convincing evidence that the defendant has been guilty of oppression, fraud, or malice, the plaintiff, in addition to the actual damages, may recover damages for the sake of example and by way of punishing the defendant." Thus punitive damages may be awarded in an action for conversion upon a showing, by clear and convincing evidence, that the defendant's conduct amounted to oppression, fraud or malice. (Ferraro v. Pacific Fin. Corp. (1970) 8 Cal.App.3d 339, 351.)