Property Study Guide

7/24/2019 Property Study Guide

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ImportantNotes:

Thereare3sectionstothisoutline:

1.Aonepageattacksheet/issuechecklistthatshouldbesemimemorizedto

reflectthequestionsyoushouldbeaskingyourself(i.e.istheasshole

governmenttryingtotakemyproperty?),thustheissuesyouneedtospotin

ordertomaximizepoints.

2.Thecorrespondingrulesheet. Noticeitismatchedexactlytotheissue

checklist,soifyouspotanissuebutforgottherule,youhaveaneasyreference.

3.Thefulloutline. Thisalsomatchesuptotheissuechecklistandrulesheet. This

isthe3rd

layerofreferenceonlywhenyouneeddetailedinfoonanissue/rule,if

youabsolutelyneedtocite/referenceacase,orwishtothrowinsomepolicyat

the

end

of

your

IRAC.

PurpleFont=Policy

YellowHighlighting=Rules

GreenHighlighting=Examples(includingimportantcases)

Goodluck!


2/36

DoIhave1STPOSSESSIONoftheproperty?

ByFIND?

ByCAPTUREofa wildanimal?

ByCREATION?

PartofmyBODY?

ByACCESSION?

ByTRANSFER

NEMODAT?

ByBONAFIDEPURCHASE?

ByGIFT?

ByaTRUST?

AFIXTUREpartoflandIgot?

ADCOELUM?

ACCRETION?

AVULSION?

ADVERSEPOSSESSION

HowdidIgetthisproperty?

IstheSTATUTEOFFRAUDSsatisfied?

DidIREGISTER my

TITLE?

DidIRECORDmyTITLE?

WhatTYPEofRECORDINGACTdidIuse?

IsmyinterestevenRECORDABLE?

DoestheSHELTERRULEapply?

DoIhaveaWILDTITLE?

HowdoIprovethepropertyismine?

IsthereaCONCURRENTOWNER?

AmIMARRIED?

DoIhavetosharethispropertywithsomeotherasshole?

DoIreallyneedtheABSOLUTERIGHTtoEXCLUDE?

WasitaCRIMINAL act?

DidsomeassholeTRESPASSonmyLAND?

DidhefuckupmyPERSONALPROPERTY?

DidhefuckupmyINTERNETS?

HowdoIREMOVEtheassholeFROMMYLAND?

HowdoIgetaBUILDINGENCROACHMENT offmyland?

DudeisafuckingNUISANCE,howdoImakehimSTFU?

HowamIgoingtoGETMYSHITBACK?

Whydon'tIjustuseSELFHELP?

Didmy

TRUSTEE

screw

up?

WasmyBAILMENT fuckup?

AmIgettingDIVORCED?

CanIkickmyCOTENANTout?

IsmyCOOPorCONDOtryingtokickmeout?

Issomeassholetryingtowalkthroughorfuckupmyproperty(ordidhealready)?

DoesmylandfallunderthePUBLICTRUSTDOCTRINE?

TakingmyNAVIGABLE AIRSPACE?

TakingmyNAVIGABLEWATERWAYS?

DidthegovernmentTAKEmyland?

IsthisPHYSICALOCCUPATIONorDEPRIVATION ofmyuse?

AretheyclaimingNUISANCEABATEMENT?

IsthecitydoingsomeREGULATION?

DidIgetJUSTCOMPENSATION?

Isthe

government

taking

for

PUBLIC

USE?

Isthegovernmenttheassholetryingtotakeawaymyproperty?

WhattypeofLEASEisit?

DoestheSTATUTEOFFRAUDSapply?

DidIdeliveryACTUALPOSSESSION?

WhataretheTENANT'SDUTIEStome?

HowdoIKICKTENANTOUTandREPOSSESSmyproperty?

DidICONSTRUCTIVELYEVICTmytenant?

WastherereallyaBREACH oftheCOVENANTOFQUITE

ENJOYMENT?

OrdidIBREACHanIMPLIEDWARRANTYOFHABITABILITY?

WTFdoIdoafter tenantABANDONS thepremises?

Wasthis

aCOMMERCIAL

LEASE?

DidmytenantSUBLEASE hisrighttooccupy?

DidmytenantASSIGNhisrighttooccupy?

DidIASSIGNmyproperty?

HowdoIrentmypropertyout?

CanIABANDONorDESTROYit?

SEEFREEHOLDINTERESTSCHART

CanITRANSFERit?

CanICOMPLETELY RESTRICT FUTUREtransfers?

IfIhave

aLIFE

ESTATE

did

IWASTEsomething?

HowdoIgetridofthisproperty?

WashistrespassaNECESSITY?

WasthereaCUSTOMtohuntonmyland?

DidImakemylandaPUBLIC

ACCOMMODATION?

DidILICENSEitout?

DidI(or

aprevious

owner)

GRANTan

EASEMENT, how,andwhatkind?

WastheEASEMENTproperlyTRANSFERREDto

thenewasshole?

IsheblockingmyLIGHTandAIR?

DidtheassholeABANDONtheEASEMENT?

SEEPRIVITYCHART

DidI(orapreviousowner)GRANTaREAL

COVENANT?

DidI(orapreviousowner)GRANTanEQUITABLE

SERVITUDE?

Waitaminute,istherealegitimatereasonorexcuse

forthisasshole'strespass?

FINALATTACKSHEET

Outline Page 1


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Commonlawholds"firstintime,firstinright"thatis,apersonwho(1)controlsorholdstheproperty,

withorwithoutaclaimofownership,(2)withanintenttopossess,istheoriginalpossessorwithgreater

rightsthantheworld.

DoIhave1STPOSSESSIONoftheproperty?

Afinderoflostproperty isapersonwho(1)takescontrolofthepropertyand(2)hastheintentof

maintainingpossession

of

the

property;

he

has

greater

rights

to

the

found

property

than

the

whole

world,

exceptfortherightfulowner,apriororrightfulpossessor,orapersonholdingthroughtherightfulowner

orpossessor.

ByFIND?

Apersonwhogetsactualorconstructivepossession(throughlandownershiporcustom)ofawildanimal

withitsfreedomrestricted isgrantedrightstotheanimalsuperiortotheworld.

ByCAPTURE ofawildanimal?

Thefirsttocreatesomethingnewornovelisrewardedwiththerighttoexcludealltheworldfromsaid

property[subjecttosomelimitationsthatareunfairinmyopinion(tobediscussedlater)].

ByCREATION?

Noonecanownanotherpersonbecauseofunalienableselfownershipsousuallybodypartsarenot

definedasproperty(foreitherdueprocessorconversionpurposes,atleast)forpolicyreasons.

PartofmyBODY?

Ownershipisgiventosomebodywhenhemistakenlytakesaphysicalobjectthatbelongstosomeoneelse

andtransformsitthroughhislaborintoafundamentallydifferentobject.

ByACCESSION?

Nemodatistheprinciplethatnoonecangivethatwhichhedoesnothave,sothetransferee'srightsare

derivedfromthoseofthetransferor

ByTRANSFERNEMODAT?

TheUCCmakesanexceptiontoNemoDatandallowsagoodfaithpurchasertokeepthegoodwhenhe(1)

paysgoodvalue (2)ingoodfaith,and(3)thetitlewassimplyvoidableinsteadofvoid.

ByBONAFIDEPURCHASE?

Agiftisapresenttransferofpropertybyonepersontoanotherwithoutanyconsiderationor

compensation,wheretheremustbe(1)intent tomakeagiftbydonor,(2)deliverybydonortodonee,and

(3)acceptance bydonee.

ByGIFT?

Atrustisthreelegalpersonasplusatleastone"thing";thesettlor createsthetrustandistheabsolute

owner;thetrusteeisthepersonwhoreceivesthetrustandisresponsibleformanagement;the

beneficiary isthepersonthetrustbenefits.

By

aTRUST?

Athingthatwasoriginallyamovablechattel,(1)byreasonofitsannexation to,(2) applicationand

associationintheusewithland,and(3)theintent ofthepartymakingannexationisregardedaspartof

theland.

AFIXTUREpartoflandIgot?

Aowneroflandalsoownsunderneaththelandandabovetheland"towhomthesoilbelongs,heowns

alsototheskyandthedepths."

ADCOELUM?

Gradualchangeinbanksborderingrunningwatermayaddorsubtracttoanowner'slandbecausethe

boundaryline

of

the

property

remains

at

the

center

of

the

newstream

even

when

it

has

moved.

ACCRETION?

Suddenchangeofthebanksofastreamsuchaswhenariverformsanewcourseanddestroysorcreates

newbanks,theboundaryremainsasitasinthecenterofwheretheoldchannelwaslocated.

AVULSION?

ApartymayobtaintitletorealpropertybyAPwhenshe,byactinglikehavingclaimofright,(1)

continuously occupiesanother'slandin(2) actualpossession thatis(3) openandnotorious,(4) exclusive,

(5) hostileandadverseforlongerthanthe(6) SoL

ADVERSEPOSSESSION

HowdidIgetthisproperty?

FINALRULESHEET


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Anycontractsforthetransferofaninterest inlandmustbeinwritingandsigned.

IstheSTATUTEOFFRAUDS satisfied?

Notwidelyusedforrealproperty,thisregistrationsystemallowsownerstoobtainacertificateoftitleas

sufficientproofofownershipanysubsequentbuyeronlyneedstoinspectcertificatetoproveownership.

DidIREGISTERmyTITLE?

Thefunctionofrecordingactsisto(1)givethe"purchaserforvalue"oflandawaytocheckifthetitleheis

receivingisfreefrominconsistenciesofearliertransactions,and(2)ensurehistitleisgainspriority.

DidIRECORDmyTITLE?

Therearethreetypesofrecordingacts:purerace(thewinneroftheraceprevails),notice(asubsequent

bonafidepurchaserwinsregardlessifherecordsunlesshehasactual,constructive,orinquirynotice),

andracenotice(asubsequentgoodfaithpurchaserwinsonlyifhehasnonoticeANDrecordsbeforethe

priorinstrumentisrecorded).

WhatTYPEofRECORDINGACTdidIuse?

Interestsgainedthroughadversepossession,easementsbyimplicationornecessity,shorttermleases,and

contractsarenotrecordable.

IsmyinterestevenRECORDABLE?

Undertheshelterrule,anygrantee(bypurchaseorgift)fromabonafidepurchaserisprotectedasabona

fidepurchaser,eventhoughthegranteewouldnototherwisequalifyforthisstatus,withtheexceptionif

thegranteeistheoriginalgrantor.

DoestheSHELTERRULEapply?

Adeedthatisrecorded,butisnotconnectedtothechainoftitleofthepropertyiscalledawilddeed;it

cannotprovideconstructivenoticetosubsequentpurchasersofthepropertybecausetheycannotbe

reasonablyexpectedtolocatethe deedusinggenerallyacceptedmethods(granteeandgrantorindexes).

Do

I

have

a

WILD

TITLE?

HowdoIprovethepropertyismine?

The3waystwoormorepeopleeachownpresentpossessoryinterestinthesamepropertyare:(1)joint

tenancy(asingle,unifiedinterestinrealorpersonalpropertywhichincludestherighttosurvivorship);(2)

tenancyincommon(aseparated,dividedinterestwhichdoesnothaverightofsurvivorship);and(3)

tenancybytheentirety (whichonlyexistsbetweenhusbandandwife,whichincludessurvivorshipand

"indestructibility").

IsthereaCONCURRENTOWNER?

Undermodern

"community

property"

approach,

any

income

or

property

from

income

(not

gifts

or

inheritance)acquiredduringthemarriageisconsideredforthebenefitofthecommunityandequally

distributed.

AmIMARRIED?

DoIhavetosharethispropertywithsomeotherasshole?

Societyneedstherighttoexcludeforeconomicdevelopment,privacy,personalautonomy,liberty,and

security

DoIreallyneedtheABSOLUTERIGHTtoEXCLUDE?

Criminallawprovidesthe"backstop"topropertysopropertyownersdonothavetoresorttodangerous

selfhelpinordertoenforcetheirrights.

WasitaCRIMINALact?

Trespasstolandiscommittedwhenanindividualortheobjectofanindividualintentionallyenterstheland

ofanother

without

alawful

excuse

a

party

whose

land

is

entered

upon

may

sue

even

if

no

actual

harmis

done.

DidsomeassholeTRESPASSonmyLAND?

Trespasstochattelsisanintentionalinterferencewithapossessoryinterest absentconsentoftheowner.

DidhefuckupmyPERSONALPROPERTY?

Anelectronicmessagecanbedeemedatrespasswherethemessageinterfereswiththetargetcomputers

operation,aslongasaplaintiffcandemonstrateeitheractualhardwaredamageorimpairedfunctioning.

DidhefuckupmyINTERNETS?

Injunctions,eviction,ejectments,andactionstoquitetitleareconcernedabout(1)vindicatingthe

interestapersonhasinexclusivepossessionand(2) recoveringsaidpossessionofland(forexample

againstadefaultingtenantoratrespasser),whodoesnothave(ornolongerhave)anyrighttoremain

there.

HowdoIREMOVEtheassholeFROMMYLAND?

Issomeassholetryingtotakeaway,walkthrough,orfuckupmyproperty(ordidhealready)?


5/36

Thereisnouniversalruleforbuildingencroachments,sometimesmandatoryinjunctions areissued,

sometimescompensatorydamages(restitution) itdependsifthesituationcallsforusingapropertyrule

versusaliabilityrule.

HowdoIgetaBUILDINGENCROACHMENToffmyland?

Nuisancerequiresa(1)substantial (injuryrequired),and(2)unreasonable(gravityofharmoutweighs

utilityofactivitycausingharm),(3)nontrespassoryinvasion(intangiblethings)orinterferencein

another'suseandenjoymentoftheirland.

DudeisafuckingNUISANCE,howdoImakehimSTFU?

Replevin is

used

to

recover

wrongfully

taken

personal

property.

HowamIgoingtoGETMYSHITBACK?

Apersoninpossessionofpropertycangenerallyusereasonableforcetopreventorterminateanunlawful

entryorothertrespassuponlandoratrespassagainstortheunlawfulcarryingawayoftangibleproperty

Whydon'tIjustuseSELFHELP?

Trusteeshaveadutytocarryouttheexpresstermsofthetrust,thedutytoprudentlyinvest(dowhatis

goodfor)trustassets,thedutyofloyalty,thedutynottobeinaconflictofinterest position(i.e.toprofit),

thegeneraldutytoadministerthetrustinthebestinterestofthebeneficiaries.

DidmyTRUSTEE screwup?

Abailmentistherightfulpossessionofgoodsbyonewhoisnottheirowner;thebailee(personholding

goods)isnotaninsurerforthegoodsbutisliableforlackofcaretovariousdegreesbasedonwhois

benefitted andifthebailmentisvoluntaryorinvoluntary.

WasmyBAILMENTfuckedup?

Themodern

approach

to

divorce

is

"equitable

distribution",

where

property

is

divided

by

the

court

accordingtofairness,notbasedonwhohastitleusuallyonlypropertyacquiredduringthemarriagefrom

theearningsoftheparties,butsometimesincludes"futureassets"suchasaJ.D.

AmIgettingDIVORCED?

Regardlessoftheformofcotenancy,eachcotenanthastherighttooccupytheentirepremises,subject

onlytothesamerightintheothercotenants,unlessthepartiesmakeanagreementtothecontrary.

Thereisnorighttocollectandnodutytoaccount unlessheouststheothercotenantordepletesthe

land.

CanIkickmyCOTENANTout?

Courtswillenforcethecovenants,conditions,andrestrictionscontainedintherecordeddeclarationofa

commoninterestdevelopmentunlessunreasonable.

IsmyCOOPorCONDOtryingtokickmeout?

Atrespassertopropertymayhaveaprivilegetoenteranother'slandwithoutconsentinordertoavoid

seriousharm,butmustmyrestitutionforanydamageincurredhecausedwhiletrespassing.

Washis

trespass

aNECESSITY?

Atrespassermaybeexcusedifheentersthelandofanotherthatisunenclosedanduncultivated,forthe

purposesofhunting.

WasthereaCUSTOMtohuntonmyland?

Whenpropertyownersopentheirpremisestothegeneralpublicinpursuitoftheownpropertyinterests

(profit),theycannotexcludepeopleunreasonably,especiallyinanarbitraryordiscriminatory manner

towardsmembersofthegeneralpublicthatcomeupontheirproperty.

DidImakemylandaPUBLICACCOMMODATION?

Alicenseisapermissionsliptouseanother'slandforoneparticularpurposeonly,isnotassignable

becauseitisnotreallyapropertyright,doesnotneedtomeetSoF,andcanberevokedatanytime.

DidILICENSEitout?

Aneasementisaprivilegetothelimiteduseofthelandofanother,eitheraffirmative (toallowholderdo

something),ornegative (topreventlandownerfromdoingsomething). Aneasementcanbeappurtenant

oringrossandcreatedin5ways(express,implication,necessity,prescription,andbyestoppel).

DidI(or

aprevious

owner)

GRANTan

EASEMENT,how,

and

what

kind?

Whenthetitleoftheserviant estateistransferred,theburdenoftheeasementremainswiththeproperty.

Aneasementappurtenant (onewherethebenefitappliestotheparticularlandonly)normallypasseswith

thetransferofthedominantestate. Aneasementingrossisnottransferable.

WastheEASEMENTproperlyTRANSFERREDtothenewasshole?

Thereisnonegativeeasement fortherighttolightandair,oraclaimfornuisanceagainstsomeonewhois

buildingontheirproperty.

IsheblockingmyLIGHTandAIR?

DidtheassholeABANDONtheEASEMENT?

Waitaminute,istherealegitimatereasonorexcuseforthisasshole'strespass?


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7/36


8/36

WHATISPROPERTY?Hasbeendefinedinvariouswaysastheproductofone'slabor(Locke),tothefoundationof

capitalismandclassstruggle(Marx),butULTIMATELY:

Propertylawisaboutrelationsamongpersonswithrespecttothings

Howto

reward

and

encourage

efforts

for

productive

use

of

those

resources?

Resourcesoftheworldonwhichsocietydependsforsustenance,satisfactionitsneedsanddesires

Howlawdefinespropertyinterests

Howoneacquiresproperty

Howpropertyrightscanbeshared

Howoutsideparties'interestsaffecttherightsofOs

Propertyrightsconsistofwhatyoucangetthestatetobackyouupon:

Contracts

Capital

Intellectualassets

Moderneconomicgrowthisaboutintangible propertyrightsin:

Predictableandenforceableversionofwhatlawcalls"property"and"contract"

Enforcementrulesmorefocusedonabroadrighttoexcludethanonspecificlist ofrightstouse

By"propertyrights" wemean:

By"privateordering" wemeantheabilityforprivatepeopleandfirmstomakedeals witheachotheras

theychose,ratherthanasinstructedbythegovernment

Propertyrulesforcespeopletotalkandrationalize

Ourgoalisnottodecreaseuse,buttocoordinateincreaseduse

Ourgoalisnottoprotectthewealthy,buttofightpovertyandimproveeconomyfor allpeople

ExamplesWhyGovernmentRegulationisBad

Banksvs.debtors

U.S.depositorsandbanks

Nopropertyrights,almostnobankingsystem

Around18,000mortgagesinentireMexico

CompareMexico

Banking1.

Disclosurecanbegood

Keepssomesmallcompaniesfrom"goingpublic"

Encouragesothersalreadypublictobetaken"private"or offshore

Distractsmanagementandtheboardfromcorporate strategy

Butmandatorydisclosuremaybesoonerous,thatit:

SARBOX:UnintendedConsequences?2.

SECrulethathedgefundmanagersmustregisterunderthe InvestmentAdvisorsAct(immediately

overturned

by

DC

Cir.)

Supposedtoprotectinvestors

Onlyoptoutwasiffundhadatleasta2yearlockup windowduringwhichinvestorscouldnot

withdraw

Butthreatofwithdrawaliswhatgaveinvestorsinsmall fundsneededcomfortandcontrol

Soonlylargefundswithestablishedreputationscould attractinvestors

HedgeFundRegulation3.

PropertyRightsinIPasKeystoInnovationandCompetition

Notjustincentivestoinvent

Getinventionsputtouse

Increaseinnovation:1.

FINALFULLOUTLINE


9/36

Byfacilitatingcoordinationamongcomplementaryusersofthe invention(investors,managers,

marketers,laborers,ownersofotherinventions,etc)

TheDpartofR&D

Antimonopolyweapons

VitalslingshotforDavidagainstGoliath

Helpnewcompaniescompete:2.

PropertyRightstoEncourageIndividualIncentives

Lesson:identifyingaparticularincentivedoesnotalwayspredictactualresulting behavior need

toknowwhatotherincentivesareoperatingandhow

People

make

choices

(tradeoffs)

in

view

of

what

they

perceive

to

be

their

agendas, resources,

and

the

incentivestheyface(seeBecker1992Nobelextendingrationalchoicetheorytobroadrangeofhuman

behaviors)

Rentisgainfromdoinganactivityandsometimesprivateandpublicrentscandiverge

Lesson:potentialfornetoverinvestmentorimproperinvestmentinracetowardsa commonprize

Rentseekingandrentdissipation

Makingdecisionsrequiresagreatdealofinformation

Searchcosts,andthefixesofreputation,andadvertising

Lesson:lookforlowestcostprovider,evaluator

Informationcosts

Behavioralism

Lesson:weareonlyboundedlyrational,burdenedbycognitivebiases,heuristics, groupthink,fashion

Conclusion

Theseseeminglydiversefields(contracts,property,IP,corporate,finance,etc)sharebasicthemesin

common

Lotsofprivateflexibilitybackedupbyfirmgovernmentenforcement

Littleofflexiblegovernmentenforcementorfirmmandate

Privateorderingbenefitsfrom:

Economicsuccessisaboutprivateordering

Frustrategood

coordination

Facilitatebadcoordination

Somelegalapproachesmay:

PropertyRightsatTheirBest PropertyRightsatTheirWorst

Attributes: Attributes:

Predictableenforcement Unpredictableenforcementcreatedorchangedat

discretionofgovernment

Goodflexibilitycanbetradedandlicensed;

bundledanddivided

Badflexibilityfixedownerandfixedcontours

Usersdealwithprivateindividuals Usersdealwithgovernment

Effects: Effects:

Easyformarketactorstouse Easyforpoliticalactorstouse(regulatorsand

powerfulpoliticalconstituents)

Stimulatecompetition,innovation,economic

growth,andjobs

Concentratewealthandpower


10/36

THERIGHTTOEXCLUDE

TRESPASSVS.NUISANCE

RULERighttoExclude:Societyneedstherighttoexcludeforeconomicdevelopment,privacy,personal

autonomy,liberty,safety,andsecurity

Sometimesnecessityisrecognizedasadefensetoanactionfortrespass

"Strictliability"intortsanintentionaltrespassistheactofmovingonthelandofanother,

doesn'tmatter

ifthere

are

damages

Economicdevelopmentpeopleprobablywouldntinvestintheirlandifsomeoneelse

couldcomeinanddamageit

Invasionofpropertyregardedasaninvasionofpersonalspaceorpersonalwrong

Infringementofalegalrightisalwaysanactualharm,whethermeasurableornot

Propertyrightalsoprotectprivacy,autonomy,libertyinterests

Controllingyourphysicalspacegivesyouextraphysicalsafetyandsecurity

Heavypunishmenttodeterselfhelporretaliationifsomeonewantsitbadenough,they

canpaythehighprice

EXAMPLE:Jacquev.SteenbergHomes,Inc.(punitivedamageawardedevenwhenonlynominal

damagesnoactualdamagesbecauseimportanttodeterphysicalinvasionsofland,doesn't

matterthetrailerdidn'tdoanydamagetoJacque'sland)

Eminentdomainthestatecantrumpeverything

Easementsrighttocrosssomeoneelse'sproperty

Necessityiflifeorlimbisatstake,mayhaveaprivilegeofnecessity

Discriminationinpublicaccommodationscantexcludeonprohibitedgroundsifyouare

admittinganymembersofthepublicontoland

i.e.handingoutpamphletssometimesallowedunder1stAmendment

Freespeechrightsonprivateproperty

Invitationwillsubjectyoutomanymoreexceptions

Canexercisedominionbybuildingorengaginginactivitiesonthesurfacethat

wouldusetheairspace

Alsowouldresultinanabsurditytoregulatewhoownsairspace

Needtoexercisedominioninordertoowntheairspace

EXAMPLE:Hinmanv.PacificTransport(notrespassbyplanesunderadcoelumrule

(whoeverowns

the

soil,

owns

the

sky

and

depths)

because

owner

of

land

owns

as

much

of

thespaceabovehimasheuses,butonlysolongasheusesitandnouseinthiscase)

NOTanabsoluterighttoexclude:

RULETrespasstoLand:Anyintentionalintrusionthatdeprivesanotherofpossessionofland,evenif

onlytemporarily

Substantial=mustbeinjuryandunreasonable

Majorityofcourtssaysdustislikefumes,somethingthatispartoftheenvironment

soactionableonlyinnuisance,ifatall

Somecourtsputdustintrespasscategory,butalsorequireharm

Courtheredoesn'twanttosoftenthehardedgeoftrespasslawbyrequiringharm/

injuryincertaincases,soinsteadtreatsdustasanuisance

EXAMPLE:Adamsv.ClevelandCliffsIronCo.(nuisance,nottrespass,whendealingwith

intangibleobjectssuchasairbornedamagecausedbyparticulates,noise,orvibrations)

Nontrespassory=samethingcan'tbeanuisanceandatrespass(nuisanceforintangible

invasions)

EXAMPLE:Hendricksv.Stalnaker(waterwellisnotanunreasonableuseoflandbecausehe

hadnootheroptions,notinvasivelikeseptictankor"spitewall"thereforeisnotaprivate

nuisance)

Unreasonable=gravityoftheharmoutweighsutilityoftheactivitycausingharm

RULENuisance: Asubstantial(mustbeinjuryandunreasonable)nontrespassoryinvasionor

interferenceinanother'suseandenjoymentofland


11/36

Racingproblemrentdissipation:peoplewouldallpay$10toget$10isoverinvesting

Grantingabsoluterighttobefreefromnuisancewouldstopalotofsocially

productiveactivity

AbsoluterighttobefreefromphysicalinvasionsOKbutnonphysicalinvasionsare

morefactspecificinprovingharm,damages

EXCLUSION&GOVERNANCE

Landthathasmultiplepotentialuses,O'scandecidewhatismostvaluable,i.e.Jacquev.

SteenbergHomes,Inc.

Ownerhasabsoluterighttodecidehowpropertywillbeusedbest

RULE

Exclusion:owner

is

gatekeeper

of

the

resource

and

decides

how

to

use

Landthathasheightenedsignificance,i.e.Hendricksv.Stalnaker

Judgesdeterminehowpropertywillbeusedbest

RULEGovernance:focusesonparticularusesofresources,andpermitsorprohibitsuseswithout

regardtotheotherattributesoftheresource

2differentstrategiesforresolvingdisputesabouthowresourcesareused:

PROPERTYRULESVS.LIABILITYRULES

Decisioniswhohadinitialentitlement butdoesnotaddressvalue

Propertyrule

encourages

people

to

talk

it/courts

wont

enforce

PropertyRULE:rightcan'tbetakenawayunlessyougiveconsent(exceptthrueminentdomain)

Transfer/destructionofpropertyallowedbasedonvaluesetbythecourtinsteadofbythe

partiesthemselves

Notasgoodasifthepeoplethoughtitoutthemselves?

LiabilityRULE:rightcanbetakenawayatapricesetbythecourt

VINDICATINGPROPERTYRIGHTSINJUNCTIONSANDRESTITUTION

Thecoreattributeofpropertyisthatitcannotbetakenwithoutconsent;theactionof

restitutioncanbeviewedasawayforvindicatingrightsinproperty

Wheretheinjuryis irreparable,or

Where

full

and

adequate

relief

can't

be

granted

at

law,

or Topreventrepetitionofsimilaraction/multiplicityofsuits

EXAMPLE:Bakerv.HowardCountyHunt(injunctionjustifiedagainstcontinuingorrepeated

trespassesinpursuanceofasinglepurposethehuntersweren'tgoingtostoptrespassing)

RULEforInjunctions:Equitynotusedtoenjoinameretrespasswithexceptions

Plaintiffchoosesinjunctionisthisaproblem?(maywanttopreventdefendantsfrom

operatingthefactory)

Opportunismisthecost,ifyouknowsomebodyhasinvestedalotinyou,youcantake

advantage(maybe

even

wait

until

the

factory

is

built

before

suing

out

of

spite

Pilev.Pedrick(doesn'tmatterthefoundationwasbuiltonly1"onaccidentabsolute

propertyrightmeansthedefendantsmustteardownthebuildingorpaydamages)

Supportsequityruleagainstinjunctionifpersonseekingithasuncleanhands

Doctrineoflachesyoucan'tgetaninjunctionifyouwaittoolongandthetrespassing

partyreliesonyounotenforcingthepropertyright

GoldenPress,Inc.v.Rylands(mandatoryinjunctiondeniedbecausedefendant's

encroachmentwasunintentionalandslight,plaintiff'susenotaffected(damagesmalland

compensable),highcostofremovalwouldcausehardshiporevenunconscionable)

Efficientresultwouldbefordeftooffercompensationuptotheamountof

Pile ifcostofremovalgreatlyexceedsharmfromencroachment,partieswill

bargainsoentitlementgoestodef,andthewallstaysup

Coaseananalysis

EXAMPLES:

RULEBuildingEncroachments:Nouniversalruleastoinjunctionsforencroachment,sometimes

compensatorydamages(restitution),sometimesmandatoryinjunction(removeurshit)


12/36

tearingdownthewall

Probablywonthappeninthiscaseb/cplaintiffsdontwantstructureatall

Ifhavingwalltakendownworthmoretoplaintiffsthanhavingitfordefs,ideally

wouldpayenoughtogetittakendown

Mightnothappenifdefsdonthaveenoughmoney

GoldenPress plaintiffhastosellentitlementforatrivialamounttomoneysetby

thecourt

Alsodestroyingthehousewaswastedonewithuncleanhands

EXAMPLE:ProducersLumber&SupplyCo.v.OlneyBuildingCo.(buildingonanother'sproperty

couldnotbedestroyedbythebuilderthereweremanyoptionstheplaintifflandownercould

havetaking,butissueishisrighttochoosewastakingawaybythedefendant,doesn'tmatterthe

defendantwasaninnocentandaccidentaltrespasser)

RULE

Restitution:(1)

an

unjust

enrichment

of

the

defendant,

(2)

at

the

expense

of

the

plaintiff,

(3)

undercircumstancethatareunjust

ORIGINALACQUISITIONOFPROPERTY

BYCAPTURE/OCCUPANCY(FIRSTPOSSESSION)

Firstintime,firstinright

Constructivepossessionhasthesameeffectinlawasactualpossessionbutisnotactual

possession

RULEPossession:thecontrollingorholdingofpersonalproperty,withorwithoutaclaimofownership:

(1)an

intent

to

possess

on

part

of

the

possessor,

and

(2)

her

actual

controlling

or

holding

the

property

Ruleofcapturedesignedtominimizedisputesbecauseunlikelythatmorethanone

personcanclaimsuchpossessionorcapture

Landownersratione

soli

are

deemed

to

have

constructive

possessionof

wild

animals

ontheirproperty,evenifatrespassercapturedtheanimalbyfirstpossession

Piersonv.Post(disputewasn'taboutthefox,itwasvalueofthehunt,buthuntermusthave

possessionbeforegettingpropertyrights)

Mustshowmaliciousintentisbadforsociety,notthatitonlycreatescompetition

Keeblev.Hickeringill(DmaliciouslyinterferedwithP'slawfuluseofhisland,thedamages

notrewardedforlostducksforDinterferingwithP'suseofhislandforpleasureorprofit)

Courtsayswhalingwouldstopifpeopledidn'thaveassurancesthatthefruitsofhis

laborcouldbeappropriatedbyanychancefinder

Economicpolicyconcernswithrewardingandencouragingproductivity,and

minimizingfreeriders

Minimizingdisputes,maintainingsocialorder

Ghenv.Rich(whalergrantedpossessionofwhalebecausewhalingcustomsaysthewhale

killerownsit,notthepersonwhofindsit)

EXAMPLES:

Openaccess=accessisopentoallmembersofaparticularcommunity,butnottoall

outsiders

Ruleofcaptureestablishesownershipofaresourceonceitiswithdrawn(i.e.fisherowns

fishhecatchesinanopenaccessfishery)

Ruleof

capture

is

based

on

open

access

to

the

Commons

Individualsonlythinkoftheirslightgain,notthenetlosstosociety

Sointernalarrangementsorcontrolbyaprivateowner/thestatenecessarytoregulate

openaccessresources

Problemswithfreeridersdepletingfrominvestmentratherthantryingtoimproveit

RULE CaptureofWildAnimals: actualpossessionofawildanimalwithitsfreedomrestrictedgives

propertyrights

TragedyoftheCommonsnoonehastherighttoexcludeanyoneelse,andthuseveryonewill

"COMMONS"DEFINITIONS:


13/36

exercisehisrightofaccess

TragedyoftheAnticommonstoomanyhavetherighttoexclude,sonooneisabletousethe

resource

ProblemoftheSemicommonswhenagivenresourceissubjecttoprivateexclusionrightsin

someuses,butopenaccessforotherpurposespeopleincentivizedtofavortheirpartofthe

semicommonsandtrashtheotherparts

BYCREATION

Mainreasonforcreatingpropertyrightsininfoistoprovideincentivesforproducingmoreofit

Needtoprotectsothereisincentivetocreate,butnotoverprotectwhichwouldlimitcompetition

andraiseprices

Propertyrightnotagainstthewholeworld,justthecompetitorbecausethegains/

profitsareatissue,notthepropertyitself

HotNewsInternationalNewsServicev.AssociatedPress(courtfindsquasipropertyright/

unfaircompetitionbecausethisisanunauthorizedinterferencew/AP'slegitimatebusiness

preciselyatthepointwhereprofitistobereaped)

Wasproductofmechanicalskill,notexerciseofinventivefaculty

Somethingofaquasiproperty/contractrightapartyisliableforuseand

mustpaycompensationifheappropriatesanideaandusesitforhimself

Courtdoesallowprotectiontoalimiteddegreebylawofunjustenrichment

Dependsoniftherehasbeenunjustenrichmentpatentabilityofideairrelevant

PatentsTrentonIndustriesv.A.E.PetersonManufacturingCo.(nopatentprotection

becauseidea

not

inventive

enough

so

no

infringement)

EXAMPLES:

RULE

Creation:the

first

to

create

some

new

or

novel

thing

is

rewarded

with

a

right

exclude

others

from

usingit

BYACCESSION&ADCOELUM

Accessionappearstoinvolvetheperceptionthatonethingbearssuchaprominentrelationshipto

another

thing

that

possession

of

the

one

is

also

possession

of

the

other

Ifdeliberatelytakesomethingandconvertit,mustgivenewthingbackto

originalOevenifvaluehaschangedsignificantlybyadditionoflaborormoney

Enforcingoriginalownershipwithliabilityright(compensationforvalue

ofwhatyougaveuporlost)ratherthanpropertyright

Butcouldntargumentbemadethatthevalueofwhatyoulostwas

thevalueofittransformed,ratherthantheitsactualvaluewhen

taken?

Thegood/bad

faith

consideration

deters

theft

Courtsaysdegreeoftransformationnotaboutphysicalchanges,

butabouthowmuchvalueisadded

Wanttoencouragingmanufacturing

Ifwrongisinvoluntary,originalOcan'treclaimifthepropertyhasbeen

transformedintosomethingsubstantiallydifferent

Ultimatelycomesdowntowhethertrespasswaswillfulornot

Wetherbeev.Green (Wetherbee'strespasswasn'twillfulhethoughthehadpermission,

andheconvertedthewoodintosomethingmuchmorevaluablesothehoopsbelongedto

himnow)

EXAMPLES:

RULEAccession:Ownershipgivenwhensomeonemistakenly takesupaphysicalobjectthatbelongsto

someoneelseandtransformsitthroughhislaborintoafundamentallydifferentobject

EXAMPLE:Strainv.Green(theseller'ssecretintenttokeepthoseitemsdoesnotmeantheyare

RULEFixtures:athingwhichwasoriginallyamovablechattel,isbyreasonofitsannexationto,

applicationand associationinusewithland,andintentofthepartymakingannexation regardedas

partoftheland


14/36

fixtures;intentisinferredbythecircumstances)

Appliestoresourcesdiscoveredbeneaththesurface,i.e.minerals,oil,gasdeposits,orcaves

EXAMPLE:Edwardsv.Sims(acourtcanorderatrespassontosomeone'spropertywhennecessary

todetermineifthatpersonishimselftrespassingifthecavewaspartlyunderLee'sproperty,

Edwardswouldbecommittingaseriesofcontinuingtrespassesunderadcoelum)

RULEAdCoelum: "towhomeverthesoilbelongs,heownsalsototheskyandthedepths"

RULEAccretion:Gradualchangeinbanksborderingrunningwater;boundaryremainsatthecenterof

thenewstream,soowner'sareamayvary,Nebraskav.Iowa

RULE

Avulsion:sudden

change

of

the

banks

of

a

stream

such

as

when

a

river

forms

a

new

course

and

destroysorcreatesnewbanks;boundaryremainsasitwasinthecenteroftheoldchannel

ActualpossessiongivetrueownernoticeandstartsSoL1.

Openandnotoriousgivecommunitynoticebybuildings,fences,crops,etc2.

Exclusive3.

Hostileoradverse4.

Continuous5.

Evenifaownerhassuperiortitle,shemaylosepossessioniftheSoLforchallengingtheoriginal

unlawfulentryexpires

Ifthereisachainofvalidconsensualtransfers,currentAPcancountthetimeofothersin

thechainoftitletomeetstatuteoflimitations

Adversepossessor

(AP)

gets

anew

title

after

SoL

expires

(usually

10

40

yrs)

Thelowesttransactioncostsolutionistoletthepersonusetheland(consent)ifyouletthem

usetheland,itisnot"adverse"possession

LesseeofEwingv.Burnet(BurnetprobablyentitledtoAPeventhoughhedidn'tactuallylive

ontheproperty;livedacrossstreetandsoldrightstograveltosomewhilerefusingto

others,thuspossessionisactual&continuous, andoutsideworldrecognizesyouasO)

But

most

jurisdictions

don't

care

about

good

faith

Carpenterv.Ruperto(Dsholdrecordtitletoland,Pusedthelandfor25yrsbutnoAP

because possessionofthepropertywasdoneinbadfaithbyP)

Privityisestablishedwheresuccessivepurchasersreceivedsamemistakendeedand

tackingallowedifprivityexists

Howardv.Kunto(everydeedintheneighborhoodwasoneoff,APestablishedeventhough

theyonlyusedthepropertyasasummerhousecontinuousoccupancydependsonthe

circumstances)

EXAMPLES:

Lossaversion/theendowmenteffectwouldbeworseforAPtolosewhathe

essentiallyhasthanfortitleownertogainsomethingheessentiallydoesn'thave

"Efficientbreach",makesitsoaplaintiffdoesn'ttryto"buy"alawsuit

Designedtoprotectrelianceinterest

Getsrid

of

gatekeepers

who

won't

do

their

job

in

favor

of

gatekeepers

who

will

Wewantlandputtoitsbestuse,discourageabsentTOs("yousnooze,youlose")

Policyandpurposebehindadversepossession

RULEAdversePossession:ifyouenterlandwhich,actlikeyouhaveaclaimofright,andremainthere

foralongenoughperiodoftime,youcantaketitleoftheland,haverighttoexcludeeventheoriginal

owner;5 requirements:

BYFIND&DISCOVERY

Afinderoflostpropertyisapersonwho(1)takescontrolofthelostpropertyand(2)

hastheintenttomaintainpossessionoftheproperty

EXAMPLE:Eadsv.Brazelton(nopossessionwhendudejustmarkedtheship,needactualtaking

withhisintenttopossess;certaindegreeofduediligencerequiredinfirstpossessionclaims)

RULEGeneralFinder'sRights:afinderoflostpropertyhasgreaterrightstothefoundpropertythanthe

wholeworld,excepttherightfulowner,apriororrightfulpossessor,orapersonholdingthroughthe

rightfulownerorrightfulpossessor


15/36

BYFINDSEQUENTIALPOSSESSION

Butsometimesactualpossessionisn'tnecessary i.e.constructivepossession

Andsometimesitdoesn'tcount i.e.abandonment

Firstpossession=usuallyresolvedbasedonactualpossession

Sequentialpossessionrejectsjustertii(3rdpartyrights)defense (unlessyoureceivedtitle

from

that

party)

Presentpossessiongivestitleagainstalltheworldexceptpriorpossessorsorsuccessorsintitle

Thereforeifplaintiffwins,nooneelsecansueoriginaldef

Ifplaintiffsuingformoneyandwins,someoneelsecouldsuebothplaintiffandoriginaldef

Allofthesehyposarereplevincasessuitsforpossession,notmoneydamages

Dealtw/underadversepossession

Allofthesehyposignorethepassageoftime

Allofthesehyposignorewherethethingisfound/ownerofplacewherethingisfound

RULESequentialPossession:finder(sequentialpossessor)hastitlegoodagainstalltheworldexceptthe

original(rightful)Oorapriorpossessor

Resolvingallofthesesituationsbylookingatwhohaditfirst

Wanttodiscouragetheft,protectsocietyfromthieves,andprotectOswhocant

provethey

are

Os,

good

vs.

bad

people

Trueownerlikelytofindthe1stfinder

Afindsring;BstealsitfromA;AsuesB. AwinsbecausehehasgreaterrightsthanB

Armoryv.Delamirie(Fv.Th)

Afindsringbutlosesit. Bfindsit. AsuesB. AwinsbecauseAhaditfirst,andwithout

abandoningorsellingit,Ahassuperiortitle

Clarkv.Maloney(Fv.F)

Ifwedon'tgiveringtoB,weencouragemorethievery

BtookringfromA;CtookringfromB;BsuesC. Doesn'tmatterthatCcanproveAhasajus

tertii(3rdparty)claim,it'sirrelevanttothedisputebetweenBandC

Andersonv.Gouldberg(Thv.Th)

Afindsring. Bstealsitandlosesit. Cfindsit. BsuesC. MostlikelyBwinseventhoughhe

isathief

because

jus

tertii

claim

again not

relevant

between

B

and

C

(Thv.F)

Afindsrock,looksatitbutthendropsit;Bfindssamerock,seesitisvaluableandtakesit; A

suesB. BhasburdenofprovingAabandonedit,whichmeansprovingintenttoabandon

difficulttodo

(Fv.F)

Afindsbike,sellsittoB;AsuesBsayinghehaditfirst. ObviouslyAgaveuppossession

(F/Sv.B)

Butwhatabouttherulethat3rd partyrightsdon'tmatter(justerti)whycanCuse

granttoBtowipeoutpriorpossession?

Ahadbike,soldittoB;Cstealsit;AsuesC. CwillclaimAgaveuppossessionofbike

(S v.Th)

Landtransferoftenhappenawayfromland,butwedon'tallowa3rd partytoclaimthe

landjustbecausetheygottoitfirst

Aleaves

B

anote

saying

he

can

have

As

bike,

before

B

gets

there,

C

sees

bike

and

takes

it;

B

suesC. Cmightseemtohave1stpossession,butbecauseofconsensualtransfer,Bwasin

priorconstructivepossession

(Bv.F)

Sweepwinsb/cnotransferofpossession,onlyabailmentcustodytransferredbuttitlenot

transferred

Agencyapprenticetookthejewelonbehalfofhisemployer(jeweler)soapprentice's

priorpossessionclaimcountsforjeweler

Sweepfindsjewel,givesittoapprenticewhogivesittojeweler

EXAMPLES:


16/36

PUTTINGITALLTOGETHERCOMPETINGPRINCIPLESOFACQUISITION

Competingprinciplesofacquisitioncasesturnonwhichoftworivalclaimsof

possessionthecourtfindsmorecompellingingivencircumstancesandcontext

Whenthethingismislaid

Maybewhenfinderisagentofsomebodyelse

Whenfinderisatrespasser/dishonest

WhenLOisinoronhisland(activepossessionofland)

When

LO

knew

the

thing

was

there

(constructive

possession)

IfyoudeliberatelyputsomethingdowninLO'shome(similartobailment)

GENERALRULEisfinderwins,butLOprevailsincertainexceptions:

ExtensionofadcoelumbecausethebeesandhoneyinDstreeskindoflikeunderground

mineralsbelongingtotheownerofthesoil

UScourtsverysympathetictothenotionthatownershipofbeesgoesw/ownershipofthe

land,perhapsbecauseitcannotbemovedoffland,alittlelesssympathetictowildanimals

EXAMPLE: Fisherv.Steward(plaintiffsweretrespasserswhohadnopropertyrightstothelandor

thetree,thebees,orhoney doesn'tmattertheymarkedit,givingthemrightswouldinfringeon

theLO'srighttoexclude)

RULELandownersvs.Finder/Trespasser:LOhasconstructivepriorpossessionofthingsfoundonhis

landasagainsttrespassers

Samewithgainsorlossesbyaccretion,newdepositsbecomethepropertyoftheO

Goddardv.Winchell(plaintiffownedland,leasedittoE;aerolitefellontolandandwasdug

upandsoldbyEtodefendantplaintiffwinsbecausethegeneraloccupancyruledoesnot

applybecauseaerolitewasnotlostorabandoned,itwaspartoftheearth,thussimilarto

adcoelum

Court

implies

that

LO

might

have

a

superior

claim

against

a

dishonest

finder

Finderreportedtopolice,thencamebacktoreclaimwhennooneelsehad

(reinforcedthattrueOwasn'tcomingback)

ImpliesthatifLOwaslivingathomeatthetime,wouldhavewon

LOhadneveractivelypossessedthehouse

LOhadnoknowledgeofthebroochsonotevenconstructivepossession

Hannahv.Peel(RARECASEfinder/occupantisownerofbroochbecausebroochwaslost

forconsiderabletime,asopposedtoaccidentallymisplaced)

Bridgesv.Hawkesworth(finderofmoneyinashopwinsagainsttheshopowner,because

unlikeahomeowner,theshopownerwasnotexpectedtohaveexclusivecontrolover

everythingintheshop)

EXAMPLES:

RULELandownervs.Finder/Occupant:finderoflostarticles,evenwhentheyarefoundonproperty,in

building,or

with

personal

effects

of

third

persons,

becomes

O

against

all

the

world

except

the

true

O

RULETreasureTrove:finderisawardedtitletogettreasurebackintocirculationpolicyoverridesthe

generalrule(alsoassumingillegalityonpartofLO)

PROPERTY&PERSONHOOD

Righttoprotectthedignityofthehumanbody,righttotransferbodypartsorrefuse

toallowtheirtransfer(righttowithholdconsent)arepropertyrights

Thisbundleofsticksqualifiesas"property"fordueprocesspurposesandthestate

cannotredefinewhatisproperty

Newmanv.Sathyavaglswaran(nextofkinhaveapropertyrightinthebodypartsoftheir

deceasedrelatives forthepurposesof"cannotbedeprivedofpropertywithoutdue

process")

Moorev.RegentsoftheUniversityofCalifornia(spleencellsarenotpropertysoconversion

claimisnotvalidliabilitybasedonfiduciaryduty/informedconsenttheoriessufficiently

EXAMPLES:General

RULE

Human

Body:

No

one

can

own

another

person

because

inalienable

self

ownership


17/36

Becausesotiedupwithpersonhood,bodypartsarepersonal,notfungible,property

Chillingeffectonmedresearch resemblesanticommonsproblem toomanypeople

havevetopower,sosocialresourcesareunderexploited

Butdissentsaysthismarketalreadyexistsalready(sperm,plasma,ovaries)and

nowthecreatorofthebodypartgetsnosayinwhereitgoes/cutinitsvalue

JudgeArabian'sconcurrencesayspeopleshouldnotbeabletoselltheirbodyparts

duetoindignityofsuchamarket

protectspatient'srights)

Newmanmightnotapplytolivingpersons

Mooreturnspartlyonthenotionofvoluntaryabandonment neitherthe

deceasednorherparentsconsenttothetakinginNewman

"Property"rightunderDPCisnotthesameas"property"underconversionlaw

CouldlackofinformedconsentberecharacterizedasaDPclaim?Moorecompared

to

Newman

CONCLUSION isthat"property"mustbedefinedbyreferencetoitssurroundingsandits

consequences

Hechtv.SuperiorCourt(spermcountsasproperty;"atthetimeofhisdeath,decedenthad

aninterest,inthenatureofownership,totheextentthathehaddecisionmakingauthority

astotheuseofhisspermforreproduction")

LIMITSON

OWNABILITY

AND

ALIENABILITY

Fungible usedforachievingothergoals(i.e.money)

Personal haveaconnectionw/theproperty,painfultolose(i.e.weddingring)

Twotypesofproperty:

MightprovidesupportforArabian weshouldprotectaninterestthatshouldn'tbe

commoditized

Characterizationofpropertybecomesdifficultwhendealingw/thingsthatareintimately

connectedtopersonhood leadstoasplinteringofpropertyrights

Radin personhoodtheory

Courtsshouldrecognizenewpropertyrightswhenbenefitsofinternalizingthecosts/benefitsof

exploitation

outweigh

the

costs

of

recognizing

the

new

property

rights

Getafatterbeaver,atallertree,ariperfruit

Majoritysaysno costswouldbegreat

Oncemedicaladvancesmadecellsvaluable,questionbecomesdothegainsofrecognizing

patient'spropertyrightoutweighthecostsofdoingso?

Tragedyofthecommons,thelawgivespeoplereassurancethattheywillnotloseoutiftheywait

tilltomorrow

Demsetz explanationofprivatepropertyrightsineconomicterms

PUBLICRIGHTSRULEPublicRights:oftheprimarypurposeofthelandistobenefitthepublic,theresourcesaretoo

publictobeparceledouttoprivateownership

Mustremainaccessibleequallytoallmembersofthecommunity

NavigationalServitude=publichasarightofnavigationtonavigableairspaceandnavigablewaters

NAVIGABLEAIRSPACE

RULENavigableAirspace:"flightsoverprivatelandarenotataking,unlesstheyaresolowandso

frequentastobeadirectandimmediateinterferencewiththeenjoymentanduseoftheland"

EXAMPLE: UnitedStatesv.Causby(lowflyingmilitaryairplanescausingchickenstonotlayeggsqualifies

asatakingbecausetherewasdirectinjurytoCausby)


18/36

NAVIGABLEWATERS

PublicTrustDoctrine:stateresponsibleforprotectingthepublic'srighttousenavigablewaters,even

whenthelandbelowthewaterisprivatelyowned;statecannotrelinquishpowertoprivateparties

EXAMPLE: IllinoisCentralRRv.Illinois(extendedpublictrustdoctrinetowatersthatarenontidalbut

navigable(i.e.privatelyownedfishingstreamsbecameverydifficulttoestablish)

PUBLICTRUSTSANDCUSTOMARYRIGHTS

Becriticalofattemptstosurrenderapublicresourcetoprivateentity

Publictrustisviolatedwhenprimarypurposeofleg.grantistobenefitaprivateinterest

Anyattemptbystatetorelinquishitspoweroverapublicresourceshouldbeinvalidated

LakeMichiganFederationv.USArmyCorpsofEngineers(primarypurposeofpubliclandis

tobenefitpublic;cannotgrantpubliclandtoprivateuniversityevenifthereareincidental

benefitstothepublicmainpurposewasnewathleticbuilding,notthepublicpaths Would

includepublicpathsandareasaswellasprivateathleticfacilities(towhichpublicwould

haveaccesssubjecttoLoyola'srightofownership)

StateofOregonexrel.Thornton(PrivateO'stitleincludeddrysandbeachbutpublichad

historicallyuseditthusacquiredaneasement,sostatehasanequitablerighttoprotect

public'senjoyment)

EXAMPLES:

RULE

Public

Trusts:

I.e.courtsayspublicacquiredaneasementsoexceptiontogeneraltrespasslaw,not

repugnanttoit

Longuse/Exercisedwithoutinterruption/Peaceableuse,freefromdispute/Reasonableuse/

Certainty/Obligatoryrecognitionofcustom/Can'tbeinconsistentwithorrepugnanttoother

laws

a.

CustomaryRightsDoctrine Blackstone's7FactorTest:

Inherently

unjustand

disruptive

destruction

of

private

property

rights

Ifthepublicwantsthelandssobad,theyshouldhavetopurchasethemfromthe

privateowner

LookatthebigislandofwasteinthePacificOceannobodyownsitbut

everybodysuffersfromit

Whoshouldmanagetheoceanortheair

Sometimesgovernmentstepsinwhenthereisamarketfailurei.e.monopoly

Sometimesgovernmentmustbeamangerwhenindividualstakesaretoosmall

toexpresstheirpreferenceseconomiesofscale

Uncertainty aboutpropertyrightsinvitesconflictsandsquandersresourceshigh

transactioncosts

Criticsofpublictrust:

Well,whatfuckingincentivedoeshehavetomanageitproperly??

Butwhat

about

toll

roadsthat

are

privately

owned,

open

to

all

members

of

the

public,

andtheownercouldonlychargetollsnotwhatthemarketcouldbear,butonly

enoughtoreimbursehisexpenses?

Traditionally,only2pointsofviewcompletelygovernmentorprivateowned

PublicTrustappliedinIllinoisCentralRRv.Illinoisa.

Privateownersshouldbeabletobenefitfromtheirproperty

Havetheholdoutpersonkilledifit'sthatbigofadealrational?

Ifit'sworthenough,themarketwilltakecareoftheproblem

Argumentagainstprescriptionswhat'swrongwithholdouts?

PrescriptivediscussedinStateofOregonexrel.Thorntonb.

CustomaryRightsStateofOregonexrel.Thorntonc.

The3ApproachestoTreatingtheCommons(PublicAreas&Rights)


19/36

PROTECTINGRIGHTTOEXCLUDE

Criminallawprovidesextensiveprotectiontoproperty,i.e.larceny

PropertyOswouldbeoverwhelmedifhadtoenforcetheirownrights

Oswouldoftenresorttoselfhelp

Providesthe"backstop"ofownershiprightsthatiscriticaltomaintainingasystemofprivate

property

CRIMINALLAWSPROTECTINGREALPROPERTY

RULELarceny:A

trespassory

/taking

and

asportation

/of

the

personal

property

/of

another

/with

the

intenttodeprivehimofit/permanently(orforalongperiodoftime)

Justconcealingwithsuspiciousactivityisenoughtoshowintentsufficientforaprimafaciecase

EXAMPLE:Peoplev.Olivo(doesn'tmatterashoplifterwasapprehended beforeleavingthestore

today'sdefinitionof"takingfrompossession"simplymeansacustomerwhocrossesthelinebetween

thelimitedrightshehastodealwithmerchandiseandthestoreowner'spropertyright)

Employermayregulateaccessbutcannotdepriveworkersofaccessto

thingstheyneedi.e. privacy,orinterferew/hisrightsoflifeand

association

Createsdistinction:thereis(1)privatepropertyand(2)privateproperty

thatisn'tsoprivatebecauseyouallowothersonforyourowneconomic

gain

EXAMPLE:State

v.

Shack(no

trespass

when

medical

/

legal

workers

went

onto

farm

to

speaktomigrantworkersbecausethemoreyouopenyourpropertytoothers

(particularlyforeconomicpurposes)themoreyoubecomesubjecttothelegally

recognizedrightsandinterestsofthoseothers)

RULETrespass:usedtovindicatetheinterestthatapersoninactualpossessionhasin

exclusivepossessionofland(i.e.tenantv.squatter)

RULEEjectment: usedtovindicatetheinterestofapersonwhohastitletolandagainsta

personwrongfullyinpossession(i.e.landlordv.tenant)

RULENuisance:protects

the

interest

in

use

and

enjoyment

of

land

RealProperty

Notreallyusedanymore

Trespassd.b.a.:appliestotheforciblecarryingoff(asportation)ofplaintiffsgoods

Notreallyusedanymore

Detinue:basedontheunlawfuldetentionofgoods

Eventuallysupplantedbytortofconversion

Trover:usedtoallegethatdefhadwrongfullyconvertedplaintiffsgoodstohisownuse

RULEReplevin:usedforrecoveryofwrongfullytakingpersonalproperty

Becausewebumpintopeopleorthingsallthetime,whereastrespassto

landislesscommonandmoreavoidable

Noharmbecausesendinglettersdoesnotharmamailbox,orcalling

peopledoesnotharmatelephone

Invasioninsufficient, harmrequiredintrespasstochattelbutnottrespassto

land

EXAMPLE:IntelCorp.v.Hamidi(NotrespasstochattelsbecauseIntelcannotshow

anyharmdonetothecomputersystem)

EvenifserverswereonIntel'sproperty,notrespasstolandb/cintangible

interferencesonlandarenottrespassesunlesstheycausephysicaldamage

RULETrespasstoChattels:appliedwhentherehadbeennoasportationofpersonal

property,butdefhadinjuredorinterferedw/propertywhileitremaininplaintiffs

possession

in

some

manner

falling

short

of

conversion

PersonalProperty

CIVILACTIONSPROTECTINGPROPERTY


20/36

Electronicinvasionsmaybeconceivableastrespass,i.e.spammingclogsservers

Nonuisanceeitherbecauseserversarenotrealpropertyinthesensethataperson

cannot"affectinguseandenjoyment"ofaserver

SELFHELP

Jurisdictions

disagree

on

whether

reasonable

force

=

deadly

force

absent

physical

danger

Morecontroversialistheuseofselfhelptorecoverpropertyoncepossessionhasbeenlost

RULESelfHelp:Apersoninpossessionofpropertycangenerallyusereasonableforce"topreventor

terminateanunlawfulentryorothertrespassuponlandoratrespassagainstortheunlawfulcarrying

awayoftangibleproperty"

Thelandlordhadalegalrightofpossessioni.

Thelandlordusedpeaceable meansofreclaimingpossessionii.

DidTabandonorsurrenderleasehold?a)

WasL'sselfhelprepossessionofpremiseswrongasamatteroflaw?b)

Twostepanalysis:

Asamatterofpolicytodiscouragepeoplefromtakinglawintotheirown

handsjudicialdeterminationavoidserroneousrepossessionandalso

disruptiontosocialorder/violence

Theonly

lawful

means

to

dispossess

aTwho

has

not

abandoned

or

surrendered

propertyistoresorttojudicialprocesswhichLdidnotdo

Bergv.Wiley(LclaimedTbreachedleasesoLchangedlocksandreleasedpropertybutLs

meansofrepossessionwereforcible(violencewouldhaveeruptedhadTbeenpresentor

notrestrainedenoughtoresorttojudicialprocess)andthereforeunlawful

Legalrightofpossessionbasedondefaultinpaymentonthecar1)

Peaceablemeansofreclaimingpossessionbecausecarwastakenat4:30AMand

plaintiffdidn'tprovokeviolence

2)

Williamsv.FordMotorCreditCo.(repossessionofcarwaslegalbecauseitwas

accomplishedwithoutanyincidentthatmightprovokeviolence)

EXAMPLES:

RULERepossession:Alandlordmayprovearepossessionislegal(andnoliability)if:

Importanceofrighttoexcludefromrealproperty

Courtdidn'twanttodisrupttheconsumermarketbychillingthesaleof goodsoncredit

Moveabilityofpersonalproperty

More

tolerance

of

/

latitude

for

self

help

repossession

of

personal

property

as

opposed

to

real

property

LAND PERSONALPROPERTY

Trespass Noharmrequired Harmrequired

SelfHelp

(LandlordTenant)(1)rightof

possession&(2)peaceablemeans

(SellerBuyer)(1)rightofpossession&(2)

peaceablemeans

EXCEPTIONSTO

THE

RIGHT

TO

EXCLUDE

COMMONLAWEXCEPTIONS

Defenseofnecessityshiftsfromapropertyrule liabilityrule

Oretainsentitlement,butdoesnothaveruleofabsoluteexclusiontheintrudercanuse

theentitlementoutofnecessity,withoutOsconsent,buthemustpaytheOjust

compensationforanydamage

EXAMPLES:Ploofv.Putnam(necessityofsavinglifejustifiesdockingsoanyinterferencesw/

personalpropertythatwouldotherwisehavebeentrespassesisexcused)

RULENecessity: privilegetoenterlandofanotherwithoutconsentinordertoavoidseriousharm

RULECustomRight:righttohuntonunenclosedanduncultivatedlandshasneverbeendisputed,and


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Economicsofhuntinghavechanged,nowhuntingismoreofarecreation

activity,sohuntersnowmaybewillingtopayforuseofland

Postingallowsyoutowithdrawyourlandfromthecommons

Lawnow ifyouhaven'tpostedonyourland,peoplecanhunt/fishthere

EXAMPLES:McConicov.Singleton(norighttoexcludeotherswhoarehuntingonyourlandpartly

becausethiswasbackinthedaywhentherewasnecessitytohuntforfoodandpartlybecause

customofhunting)

hasbeenuniversallyexercised

ButonlyappliestostateactionsoprivatepropertyOscouldstilldiscriminateonany

basisunlessitisapublicaccommodation

Righttoexcludecan'tinterferew/another'sconstitutionalrights

EXAMPLES:Ustonv.ResortsInternationalHotel(casinoscan'tprohibitpeoplebasedoncard

countingbecauseGamingCommissiondidn'trecognizeasareason(didnotexplicitlystatethatin

itsruleswhichareexpansive)

RULE

Public

Accommodations:When

property

Os

open

their

premises

to

the

general

publicin

pursuit

oftheirownpropertyinterests,theycannotexcludepeopleunreasonably cannotactinanarbitrary

ordiscriminatory mannertowardspersonswhocomeontheirproperty

Butalsoimportantpersonhoodargumenttherestrictiononthesellersrighttoselltheir

housetowhoevertheywantedwasagainstthenaturalpropertyrighttotransferthetitle

EXAMPLE:Shelleyv.Kraemer(14th Amendwouldbeviolatedifthestatejudicialenforceda

privateracist

covenant,

because

the

action

would

deny

equal

protection

to

plaintiffs)

RULEAntiDiscrimination:Thepowerofthestatetocreateandenforcepropertyinterestsmustbe

exercisedwithintheboundariesdefinedbythe14th Amendmentstatecannotenforcediscrimination

OTHERPOWERSOFSOVEREIGNOWNERS

LICENSES

MerelicensesarenotpropertyrightsdoesnotneedtosatisfySoFandcanbemadeorally

Butyoucanstillcreateapropertyrightbyhavinganinterest inthethingonthelandtowhichyou

gotthelicense,oragrant

Marronev.WashingtonJockeyClubofDC(theticketpurchasemadeacontract,butisnota

conveyanceofaninterestintheracetrack,sonotapropertyright)

Woodv.Leadbetter(alicenseisalwaysrevocable,butifcoupledwithagrantitisnoti.e.a

licensetohuntcanberevokedbutagranttotakethekilleddeermakesitirrevocable)

Publicpolicythemovietheatrecouldjustsellandrevoketheticketsatwillifthey

hadanabsoluterighttoexclude

Hurstv.PictureTheatres,Ltd.(itisassaultandfalseimprisonmentwhenyoukickamanout

ofthetheatreafterhepaidfortheseatandwasbehavingreasonablybecausetheticket

purchasewasacontractorlicense,butwithitcameanimpliedgrantorinteresttobeable

tositthroughtheperformance)

Contractsonlyaffectthepartiesbutcopyrightlawsarepropertyrightsagainst

"everyoneintheworld"

Pricediscriminationisok,that'swhatbusinessesdo

Contractscanbeprintedintinyscriptoutsideorthesoftwarecompaniescanjust

write,bybuyingthissoftware,youagreetotheshitinside

Transactionswheremoneyprecedesthecommunicationofdetailedtermsare

commonairlinetickets,cruiselinetickets

ProCD,Inc.v.Zeindenberg(bypurchasingthesoftware,Zeidenbergagreedtothelicenseor

contract,whichisnotapropertyrightthisisnotacopyrightbecauseitisnotacreative

expressionandnotapatentbecauseitisnotnew)

EXAMPLES:

RULELicenses: Alicenseisawaiverofowner'srighttoexclude,likeapermissionslip


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BAILMENTS

whosepurposeinholdingpossessionisoftenforsafekeepingorforsomeotherpurposemore

limitedthandealingwiththeobjectorchattelaswoulditsowner,and

a.

wherereturnoftheobjectorchattelinthesame,orsubstantiallythesame,undamagedcondition

iscontemplated

b.

RULEBailments:Abailmentisthetransferanddeliverybyanownerorpossessor(thebailer)of

possessionofpersonalpropertytoanother(thebailee):

(i.e.gratuitousbailmentliketakingcareofsomethingoryourfriend,finders,bailment

createdbymistake)

When

benefit

to

bailee

is

slight,

care

is

slight,

liable

only

for

gross

negligencea.

(i.e.valetdriverorhotelguyyougivethemmoneytotakecareofyourshit)

Whenbenefitisequal,dutyofreasonablecareunderthecircumstancesandliablefornegligenceb.

(i.e.borroweditems)

Whenbailmentbenefitsonlythebailee,themerestneglectordamagemakesthebaileeliablec.

Nobailmentwhenitwasjustanunattendedparkinglotwithmeters,butthe

attendantandtheticketandtheoneentry/exitinthiscasemeantthattherewasan

expectationtheattendants

would

protect

the

cars

Ticketsaysnoresponsibilitybutwhocares,itwasnotreadandnotacontract

consumersdon'tshoparoundwearerationallyignorantofthesestupidfacts

Allenv.HyattRegencyNashvilleHotel(theparkinglothadadutyasabaileebecausethe

factsmadeitmorethanalicenseorhiringofspace)

Involuntarybaileesareonlyresponsibleiftheyinterferewiththepropertyso

thatanimpliedcontractofbailmentiscreated(iftheykept[likeafinder]the

letter

then

there

might

have

been

an

implied

contract

of

bailment)

PhasnorighttobringsuitwhentheycouldnotcompelDtokeepphysical

propertyandwhentheinvoluntarybaileedidnotuseunreasonableorproper

meanstoridthemselvesofthemistakingpossession

Noconsenttothemistakingdelivery,sonotransferoftitle,sonoobligationasa

bailee

Cowenv.Pressprich(awindowmarked"deliveryofsecurities"doesnotqualifyasan

invitation,sothrowingabondthroughthewindowdoesnotmeanthereisatransferof

title,thusnoobligationasabailee;andinvoluntarybaileesdon'thavethesamedutyof

responsibilityasavoluntarybailee)

TheWinkfield(abaileehasmorerightstothepropertythananybodyelseintheworld

exceptthanthetrueowner,sothepostofficecouldsueTheWinkfield forthelostproperty

ofothers)

EXAMPLES:

RULEStandardsofCare:

ABANDONMENT,DESTRUCTION,&TRANSFER

Ownersovereigntyincludestherighttoabandonproperty,destroy,ortransferproperty

Absentprooftothecontrary,possessionispresumedtobeinthepartywhohasrecordtitle

EXAMPLE:PoconoSpringsCivicAssociation,Inc.v.MacKenzie(evenwhenthepartyobviouslydid

notwantitanymorePAlawdidn'tallowabandonmentofrealpropertywhentheystillheldtitle)

RULEAbandonment:Abandonedpropertyisthatwhichanownerhasvoluntarilyrelinquishedallright,

title,claimandpossessionwiththeintentionofterminatinghis/herownership,butw/ovestingitany

otherperson

and

with

the

intention

of

not

reclaiming

further

possession

or

resuming

ownership,

possession,orenjoyment

EXAMPLE:Eyermanv.MercantileTrustCo.(thedeadwomancouldn'thavehernicefancyhouse

burneddown,perherwill)

RULEDestruction:Thetakingofpropertybyinheritanceorwillisnotanabsoluteright,thestatemay

saywhatbecomesofthepropertyofaperson,b/cdeathforeclosesthedeceased'srighttocontrolit

andatestatormaynotimposeconditionsthatareuncertain,unlawful,oropposedtopublicpolicy

RULETransfer:Everyrestraintonalienationofpropertyisnotinvalid,butoneiswhenitviolatesrightto


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EXAMPLE:Lauderbaughv.Williams(themembershiprequirementtheplaintiffhadtomeetin

ordertosellherhousewasinvalidb/cittookawayherrighttosellherpropertyandthecontrol

overmembershipisarbitrary)

transferpropertyatall

RULEStatuteofFrauds:Anyconveyanceoflandotherthanlease3yearsorlessmustbeinwritingand

signedbyatleastoneparty

Deedsmustalsobedelivered

RULEDelivery:Nodelivery=nogift,butyoucanstillwillproperty

Giftstrumpsawillorheirs

RULE

Gifts

in

Causa

Mortis:gifts

in

contemplation

of

death

must

be

just

as

person

is

about

to

die,

and

if

thepersonlives,giftinvalid

FORMSOFOWNERSHIP

Designedtoreducecostsb/callowingonepersontocreateanidiosyncraticpropertyright,the

informationprocessingcostsofallpersonswhohaveorwantthistypeofpropertyrightgoup

Onlythosewhoarereallywillingtopayforitcandoit(pricediscriminationorpollutiontax)

NumerusClausus:Property,unlikecontract,isnotfreelycustomizablebypartiesbutratheris

standardizedintoaclosedsetofapprovedforms

MEDIATING

CONFLICTS

BETWEEN

OWNERS:

CONFLICTS

OVER

TIME

OpenMinesDoctrine:anyminingofmineralswaswasteunlessmininghadstartedbefore

lifeinterest

AffirmativeWasteiswhenalifetenanttakessomeactiontounreasonablyreducethevalueof

thereversionaryorremainderinterest(cuttingdownafewtreesisok,butnotaforest)

PermissiveWasteisthefailureofatenanttorepairorupkeepproperty,ornotpayingtaxes

CompareBrokawv.Fairchild(plaintiffcan'tteardownhouse becausetestator'sgrant

passedon"residence"notjustlandandplaintiffonlyhasalifeestatethehouseneededto

bepreservedforthefutureinterestseventhoughanewhousewouldincreasevalue)

WithMelmsv.

Pabst

Brewing

Co.(OK

to

tear

down

the

mansion

because

it

was

completely

surroundedbyanindustrialparkandtherewasnovalueinpreservingthehousefor

residentialorbusiness)

Ifthelifetenants'actionwouldmaximizethepresentvalueofthepropertyforboth

thelifetenantandthereversionorremainderinterest,thenitshouldbepermissible

Posnersayscourtsshouldjustapplysimpleruleofwealthmaximization

Doesn'tmatterthatallfutureinterestswouldbebetteroffeconomicallyw/ohouse

Showswhylifeestateisoftenabadideaendsupbindinglifetenant

PresentpossessoryO'srightsareconstrainedbylawofwastefromexercisingfullrightsof

ownershipsothatnonpossessoryOsareprotected

AmeliorativeWasteiswhereanactsignificantlyincreasesthevalueofaninterestbutthisisalso

notallowedbymostjurisdictions

RULEWaste:

Againstpublicpolicyb/cbasicpremiseofownersovereigntyistherighttotransfer

ButrestrictionsonalienationOKforlifeestatesandgenerallyOKforusagerestrictionsand

defeasibleestates,see MountainBrowLodgev.Toscano(userestrictionbylodgemembersonlyis

OK,butnotsale/transferrestrictionbecauseitisanabsoluterestraintbutnodifferencein

outcomebecauseafterremovingtherestrictionclause,itjustbecomesadefeasibleestate)

RULERestraintsonAlienation:Completerestraintonalienationofafeesimpleisvoid(evenfora

limitedtime),butpartialrestraintsareOK,stilldisfavored

MEDIATINGCONFLICTSBETWEENCONCURRENTOWNERS

JointTenancy(whichincludesrightofsurvivorship)a.

RULEConcurrentInterests: 3wayswhere2ormorepeoplecanhavepossessoryinterestsinthesame

property:


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Tenancyincommon(doesnothaverighttosurvivorship)b.

Tenancybyentirety(onlybetweenhusbandandwife,includessurvivorshipandindestructibility)c.

Survivorshipifonedies,theotherbecomesthesoleowner

Possessioneachentitledtooccupytheentirepremise

EqualSharesidenticalinterests,identicalsharescannothave1/4and3/4

Createdbysingleinstrument(deed,will)andalltenantsatsametime

Destroyedorseveredwhenonejointtenantconveysaninteresttoa3rdparty,remainingparties

stillhave

joint

tenancy

and

everything

else

becomes

atenancy

in

common

Leasesdonotsevere

Mortgagesusuallysevere,exceptinstatesthattreatmortgagesasliens,seeHarmsv.Sprague

(lienisonlyasecurityinterestintheproperty,butdoesn'tchangethetitle)

RULEJointTenancy:eachpartyhasasingle,unifiedinterestinrealorpersonalproperty

Nosurvivorshipeachtenantcanmakeatestamentarytransferinterestpassestodescendants

Unequalsharesareallowed

Presumptionistofavortenancyincommonoverjointtenancy(aslongasnotmarried)

RULETenancyinCommon:eachtenanthasaseparateundividedinterest

Divorceendsthetenancyinentiretyandsplitaccordingtotenantsincommon(equalshares)

RULETenancybytheEntirety:Only22statesusethissurvivorship,butnoseverance atallsurviving

spousegetscompleteinterest

OustingacoTrequiresanactofexclusionORusethatnecessarilypreventsanother

coTfromusinghisrightintheproperty

Unlesstheoccupyingtenantoustedtheother,seeGillmorv.Gillmor(CoTnotliableto

othercoTforrentbymerelyusingcommonpropertyaslongashedoesn'tinterferewith

othercoTrighttooccupy)

Noduty

to

account

i.e.

one

co

Tdoes

not

have

to

pay

the

non

occupying

co

Thalf

of

what

normalrentwouldbe

UnlessothercoTshavestoodbyandpermittedhimtodoso,seeGillmorv.Gillmor

Paymentsmadebyonetenant:missingcoTnotrequiredtoreimburseoccupyingcoTfor

repairs/improvements/taxesmadetocommonpropertywithoutconsentofothercoTs

Presumptionagainstpartitionbysale

Partitionatenantincommonorjointtenantcandividethepropertyorsellitanddivide

proceeds,seeDelfino

v.

Vealencis(if

impracticable

to

physically

partition

property

ORinterests

of

partiesbetterservedcourtcanorderapartitionbysale)

RelationshipBetweenCoTenants

MARITALPROPERTYINTERESTS

Toprotectthesurvivingspousefrombeing"disinherited"

Lengthof

marriage

doesn't

matter

Exceptionwithspousal/forced/electivesharesurvivingspousecanrenouncethewilland

receivedeither1/2or1/3oftheestate,includingrealandpersonalproperty

Deathifthespousedieswithawill,thewilldisposesoftheproperty,ifspousedieswithouta

will,thespousegetseverything

Whenmarriagewasshortandtherearelessassetstodivideup,courtsoftengrantalimony

(helpspousewhohelpedyou)insteadofequaldivisionofassets

Butsomejurisdictionssaynomaintenanceawardifcapableofsupportingyourself

But seeOBrienv.OBrien(medicaldegreeismaritalpropertyandsubjectto

equitabledistribution,includingthevalueofthedegreebasedonfuture

earningcapacity)

Lookatactualfinancialcontributionindeterminingdivisionofassets,nothowthat

contributionwillaffectfutureincome

Incomeearnedaftermarriageends(futureincome)treatedasseparateproperty

Divorcemaritalpropertyasdefinedbystatuteissubjecttoequitabledistribution

RULECommunityProperty:anyincomeorpropertyfromincome(notgiftsorinheritance)acquired

duringthemarriageisconsideredforthebenefitofthecommunityandequallydistributed


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ENTITYPROPERTY:SEPARATINGMANAGEMENTANDPOSSESSION

Leasesareadefactofinancingdevice(allowspoorpeopletogetthingstheynormallydon't)

Also,leverageresourcessobothlandlordandtenantcanconcentratetheirlimitedresourceson

specificareasshoppingmall(storescan'trunthemallandthemallcan'trunallthestores)

Spreadstheriskforboththeowner(multipletenants,allofthemcan'tdefault);andthetenant

(might

get

a

new

job)

LEASES

OLDCOMMONLAW&INDEPENDENTCOVENANTS

Allocationofriskunderaleasehereisthat tenantwillgetupsidegain,soalsotakes

downsideriskifsomethingbadhappensthatisn'tL'sfault

EXAMPLE: Paradinev.Jane(don'tgiveashitthatsoldiersinvadedthepropertyandtenantwas

kickedout,thetenantstillowesrenttwoindependentpromises)

RULEIndependentCovenants:IndependentcovenantsmodeloftheLTrelationshipwasthatall

covenantsmustbeperformedwithoutregardtowhetherothercovenantshavebeenorcanbe

performed

THERISEOFDEPENDANTCOVENANTS&THEEMERGENCEOFTHEMODERNLEASE

StatuteofFraudsanyleaseformorethan3yearsmustbeinwritingandsigned

EstatesforYearsanyleaseforafixedperiodoftime,musthavefixedstartandenddatesandno

noticeofterminationisrequired(impliedalreadyinlease)

PeriodicTenancyleasecontinuesatendofoneperiod,unlesseitherpartyterminatesitwith

notice(commonlawrequiredoneperiodofnotice,moststatestatutesrequire30daysnotice)

TenancyatWillnostateddurationandcanbeterminatedatanytimebyeitherparty

GeneralRULES:

RULETenant'sRightofPossession:courtssplit,somerequiretheLtodeliveractualpossession(newT

cansueLifLdoesn'tkickoutTout),somerequirelegalpossessiononly(newTisonhisown)

L

traditionally

not

responsible

for

other

T's

behavior,

but

recently

L's

held

liable

when

the

other

T

isviolatinghislease,seeBlackettv.Olanoff(Tdidn'thavetopayrentbecausetheloudassclub

nextdoorhadaleasethatsaiditwouldn'tdisturbneighbors)

RULETenant'sRightofQuiteEnjoyment:ifLorsomebodyelseunderLinterfereswithT'srighttoquite

enjoymentanduseofthepremises,thisisabreachofcovenant

Noretaliatoryeviction

UnderCL,wouldhavetoshowbreachofduty,substantialandpermanentdeprivationof

enjoymentofpossessionandabandonmentbutwedon'thaveall3here

NowwetreattheTLrelationshipasacontract:impliedwarrantyofhabitability+implied

dutyand

T's

obligation

to

pay

rent

isdependenton

L's

performance

of

this

duty

EXAMPLE:Javinsv.FirstNationalRealtyCorp.(impliedwarrantyofhabitabilityappliedeventhou

Tknewabouttheconditionsatcontractformation)

RULEImpliedWarrantyofHabitability:residentialT(notcommercial) canterminatethelease,

withholdrent,oruserenttomakerepairs,butmustprovideevidence(suchasbreachofabuildingcode

orsubstantialthreattoT'shealthorsafety)

Thereisabreachofduty(i.e.repairsomeshit,ortostopnightclubfromdisturbing

tenantsevenbyevictionofnightclub, seeBlackettv.Olanoff)

i.

SubstantialandpermanentdeprivationofT'senjoymentofpossession&enjoymentii.

AbandonmentbyTinreasonableperiodoftime(Trequiredtoabandonpremisesbecauseit

showsthatconditionsweresufficientlybaduninhabitable/unusable)

iii.

BUTmodernstatutessayTcanwithholdrentbecausethereisanimpliedwarrantyof

habitabilitybyL

Notethattraditionalcommonlawappliesindependentcovenantstohabitabilityofpremises,so

usuallytheTcannotjuststoppayingrent,UNLESSTshowsconstructiveeviction

RULEConstructiveEviction: theTcanstoppayingrentif:


26/36

Thebreachwasmaterialevidencedbythe"rider"thatseparatelystatedtheconsideration

inexchangeforbothparties,ANDbothpartiesknewthelargedoctorpopulationwasthe

onlyreasonforthelease

Rescind

the

lease

due

to

the

landlord's

breach

and

not

pay

any

more

rent1) Continuedtherentandsuedforlostprofitsattheendofthelease2)

Treatedthebreachastheendofthe"contract"andsuedfordamages3)

Thetenanthadseverallegaloptionshere:

Thisrepresentsariskspreadingbetweentenantandlandlord

EXAMPLE: MedicoDentalBuildingCo.ofLosAngelesv.Horton&Converse(L'spromisenotto

leasetoanotherpharmacyandT'spromisetopayrentaredependent,therestrictivecovenant

wasnotincidental,itwenttothewholeconsiderationofthecovenant)

RULEBreachofLeaseinCommercialSettings(TreatedasBreachofContract):

SeeInreKerr(Lrelettingthepropertywasimplicitacceptance ofsurrender)

RULESurrender: needTsovertactofsurrenderandLsovertactofacceptanceofsurrender

Treleasedfromobligationsunderlease

ButLcansuefordamages differencebetweenrentdueunderleaseandfairmarketvalue

TreatassurrenderandacceptLcansueTforRentL FMRVa.

ButseeInreKerr(Lsayshetookoption2torelet,butsincethenewleasewaslonger

thantheoriginal,courtsayshetookoption1)

MakessensewhenmarkethasgonedowncansueTfordifferencebetweenhisrentand

currentrent

collected

from

second

T(not

fair

market

value)

ReletpremisesforTLcansueTforRentL RentL2b.

CourtalsosaysunfairtoTandwastefulnottorelet

Lnowrequiredtomitigatebytakingreasonablestepstoreletpremises

Mustshowaptalongw/otheravailableapartments

ButcanstillrejectprospectiveTsonreasonablegrounds

ButseeSommerv.Kridel(NewJerseysaysthereisadutytomitigateshiftingtocontract)

DonothingandsueforrentLcansueTforRentL asitcomesdue;nodutytomitigatec.

RULEAbandonment:ifTabandonsanddoesn'tpayrent,Lhas3options:

Theacceptanceisthechangingofthelocksbythelandlordsothesurrenderisgood

Tenantowes$2000dollars,fromthetimehelefttothetimelandlordacceptedhisoffer

SurrenderMethod:

Thereasonableamountoftimeseemstobe1month,i.e.theamountoftimethatitactually

tookforthelandlordtofindanewtenant

Thedefaultingtenantisgoingtobeliablefor1monthofdowntime($1000)andthe$100

differenceinrentforremainingmonthsonhislease(9x$100)

ReasonableEffortstoMitigate:

TESTHYPO:Lease2months$1000/month,12monthlease,after2monthsthelandlordchangesthe

locks,advertisingstartsinmonth5,landlordsignsanewleaseforthefinal5months,butonlyat$900

ConditionsexistedattimeofleasebutmostcourtssayJavinsapplieseventoobvious

defectspresent

at

time

of

lease

ButIWHmeansTsmustgetatleastoursocietalstandardofhousingcourtswont

allowthemtomakebargainsforsubstandardhousing

Thosethatcantaffordtosuewillbeputonthestreet,andthosewhocan

affordtosuearethosethatcouldaffordhigherrentanyway

Butalsohavetothinkaboutcosttosocietyofhavingsubstandardhousing,i.e.

disease,vermin,firehazards,etc

HerepublicpolicyoverridescertainKprovisionscourtreadingLeg

Thiswilldecreasethesupplyoflowincomehousingb/cLswilleithertakesub

standardapartmentsoffthemarketorwillfixthemupandthenraiserent

LwillarguethatTknowinglywaivedthisright,bargainedaroundpoorconditions

DoesJavinsapply?

TESTHYPO:TwaivesIWHrightsfora$200reductioninrentb/cofsomedefectinapartment,butthen

stopspayingrentb/cclaimsCodeviolations


27/36

determination(HousingCode)intolease

Economistsagreethatrentcontrolisbadfortheeconomysomestayin

rentcontrolledapartmentswhocouldaffordtomove,somearestill

closedoutofthemarket

CouldLegjustestablishrentcontrol?

Couldstayandwithholdrentuntilviolationsfixedi.

CouldsueLtofixapt(specificperformance)ii.

Also

could

receive

K

damagesiii.

Soifnowaiver,Javinsapplies,andThasremedies:

CourtmustdetermineFMRVw/defectswhichmaybewhatThadcontractedtopay(and

washere!)

ButJavinssayspremisesmaystillbeworthsomething

TRANSFEROFTHELEASEHOLD

WhenLtransfersthereversion,transfereetakespropertyinterestsubjecttoT'sleasehold

interest

Lcantransferhisreversioninterestto3rdpartyduringtermoflease

Sublease:TcarvesoutaninterestforsubTwhichissmallerthanT'sinterest

SignificanceisbecauseassignmentmeansnewT1isliableforrenttoL,butsublease

justmeansthatT1isresponsibleonlytooriginalT

SeeJaberv.Miller(ThastopayLforrent,notT1,becauseT>T1wasanassignment,

thusLandTarestillinprivityofcontractbutthereisnoprivityofcontractbetweenL

andT1(butthereisprivityofestate)

Assignment:Ttransfers

entire

original

interest

to

assignee

(must

be

entire

remaining

time)

Tcanalsotransferhisleaseholdinterest

RULETransferofLeases:Unlessthepartiesagreetootherwise,eithermaytransferhisinterest

EXAMPLE: MullendoreTheatres,Inc.v.GrowthRealtyInvestorsCo.(a leasecovenantforbenefit

of

promisee's

assignee

does

not

run

with

the

land

unless

it

touches

or

concerns

the

land,

and

in

thiscaseasecuritydepositwasnotabenefittotheland)thoughisn'tadepositforthebenefit

fortheland(whethertopreventdamagesortoinsuretimelyrent)?

RULERunningofBenefitorBurden:Theburdenrunsifthepromisetouchesandconcernsthe

promisor'sassignee'sinterestintheland(promisor'sassigneecansuetoenforce);thebenefitrunsifthe

promisetouchesandconcernsthepromisee'sassignee'sinterestintheland(promisee'sassigneecan

suetoenforce)

TstillliabletoL,regardlessofrunswithlandornot

TcansueT1ifT1doesnotpayrentbecauseT1becomesprimarilyliableandTissecondaryliable

T1liabletoLonlyforpromisesthatrunwiththeland(i.e.promisetopayrentbutnotcontractfor

securitydeposit)

L1isliableforanycovenantsthatrunwithland,i.e.repairsandupkeep

RightsafterTassignstoT1:

Lwithholdingconsentinordertoclaimasurplusisnotavalidreasontorefuse

Reasonablebasesforrefusalofsublet:poorcredit,ifT1wasgoingtousepremisesfor

somethingcostlytootherTs,illegal,etc

Oftenamorepersonalrelationship

MostresidentialTsnotsublettingforprofit(asopposedtoTinKendall)

Argumentto extendhigherstandardtoresidentialpropertyisdiscrimination

Lsgetalittlemorefreedominresidentialproperty

Kendalldoesntsaywhether"commerciallyreasonable"standardwillapplytoresidential

leases,butataminimum,residentialshouldbejustplainreasonable

EXAMPLE: Kendallv.ErnestPestana,Inc.(L'srefusalofsubleaseb/cwantstosublethimselfin

orderto

take

advantage

of

increase

in

FMRV

is

not

commercial

reasonable)

RULELimitationsonTransfers:Lcan'twithholdconsentarbitrarily,standardofcommercial

reasonableness


28/36

COOPS,CONDOS,&COMMONINTERESTCOMMUNITIES

PossessordeemedtobeOinafullersensethanTowninfeesimpleabsolute

Managingentitytypicallyagentnotjustforitself,butininterestsofallresidentstogether

Oofaparticularunitdoesn'tgetallofthesticksinthebundleofusualownership,shegivesup

someindividualautonomyforaformofcollectiveselfgovernance

RULECommonInterestCommunities: onepartyhaspossession,butanother(oftenmanagerial

association)hascontrolovercertainaspectsofthatpossession(i.e.restrictionsonsale,restrictionson

use)

Restrictionsshouldbestruckdownonlywhenarbitraryorinviolationoflaworpublic

policy

Ownersobviouslywantedtomaximizeprofits(businessjudgmentrule),thusdowhat

isgoodfortheentirecommunitythebitchshouldoflivedsomewhereelse

Nahrstedtv.LakesideVillageCondominiumAssoc.(apetrestrictioncontainedinthe

recordeddeclarationofacondoisnotenforceablebecausethepresumptionisthatthe

restrictionsinthemasterdeedarereasonablebecausewasdesignedtobenefitthe

communityasawhole)

forpurposesofcoop1.

withinthescopeoftheboard'sauthority2.

ingoodfaith3.

Defertoboard'sjudgmentaslongasboardacts:

40West67th Streetv.Pullman(OKtokickToutbycoopboardb/cofhisobjectionable

conductbecause

the

business

judgment

standardgoverns

acoop's

decision

to

terminate

a

tenancy

EXAMPLES:

RULE

Restrictions:courts

must

enforce

the

covenants,

conditions,

and

restrictions

contained

in

the

recordeddeclarationofacommoninterestdevelopmentunlessunreasonable

TRUSTS

Settloristhepersonwhocreatesthetrusta.

Trusteeisthepersonwhoreceivesthetrustandresponsibleformanagementandcontrolb.

Beneficiaryisthepersonthetrustismeanttobenefitc.

RULETrusts:3legalpersona+atleast1thing

Needstobeconstruedtothegeneralintent

Andspecificintentisimpossibletosatisfyorthatwouldviolateapublicpolicy

Exceptwhenyoucan'tfigureoutWTFthecreatorofthetrustwants,seeWiberv.Ownes(if

thetermsofthetrustareincomprehensible,tofindcypres("closeenough"):

EXAMPLE: BroadwayNationalBankv.Adams(thefounderofthetrusthadarighttodisposeofit,

absolutegifttohisbrother,orgiftwithrestrictionsorlimitationssuchasthiscasewhereincome

ofthetrustwascreatedforthebenefitofthedebtorbrother;thuscouldnotbereachedby

attachmentbeforeitwaspaidtobrother)

RULE

Settlor's

Rights:The

founder

of

the

trust

is

the

absolute

ownerof

his

property

The3rdexecutorbreachedthetrustbyfailingtoexerciseordinaryprudencewhenhe

witnessedtheothers'dividedloyaltiessoheisonlyliablefordamagesofcostwhensold

NotethatthefuturevalueofthepaintingsFARexceededwhatthe"appreciationvalue"that

thecourtsdeterminedtodaythepaintingswouldbeworth$100millioninsteadof$15

EXAMPLE: Rothkov.Reis(2executorsofartist'sestatehadBIGconflictofinterestbasically

rippedthemoffsotheyhadto payappreciationdamages becausetheestateassetsaresold

belowvalue)

RULEDutyofExecuter(Trustee):trusteeshaveadutytocarryouttheexpresstermsofthetrust,the

dutytoprudentlyinvest(dowhatisgoodfor)trustassets,thedutyofloyalty,thedutynottobeina

conflictofinterest position(i.e.toprofit),thegeneraldutytoadministerthetrustinthebestinterestof

thebeneficiaries


29/36

TITLERECORDSANDTRANSFERS NemoDatistheprinciplethat"noonecangivethatwhichhedoesnot

have"sothetransferee'srightsarederivedfromthoseofthetransferor

EXAMPLE: KunstsammlungenZuWeimarv.Elicofon(NYlawsaysownerofGermanartinNY,who

legallybought

it,

cannot

have

good

title

because

only

the

true

German

owner

has

the

right

to

title

inthepropertybutquestionableiftheartwasstolenperse)

Astraightuptheftisnotapurchase(void),butaswindleisapurchase(voidable)

Atransferorwithvoidabletitlecantransfergoodtitletoagoodfaithpurchaserunder

2.403(a),thetestforgoodfaithistheactualbeliefofthebuyer

Andthegoodfaithpurchasermustpaygoodvalue

EXAMPLE: Kotisv,NowlinJewelry,Oinc.(thiefreceivedthewatchthroughatransactionof

"purchase"becausethewatchwasgiventohimvoluntarily)

Thisisaminorityrulenormallythebadpartyismissing,butitseemsthecourt

mighthavebeeninfluencedbythefactthatthepropertyownercouldraiseanaction

againstthepartythatconductedthefraud

EXAMPLE: Hauckv.Crawford(thelandtransferwasinducedbyfraudbuttheproperty

ownerstillcouldn'tgethislandbackbecausehewasnegligentinsigningthedeed)

RULEEstoppelException:whennewownersarebonafidepurchasers,ifthepropertyownerwas

negligentincreatinganestoppel,heshouldhavetobeartheconsequences

RULEBonaFidePurchasersUCC:isexceptiontonemodat,abonafidepurchasermayhavegoodtitleto

stolenthings,ifhedoesn'tknowitwasstolen,paidvalueforit,andthetitleis"voidable"insteadof

"void"

RECORDINGACTS

Betweentheparties,itwasaprivatecontractthatgoverned

Butagainsttherestoftheworld,thepossessionwasnecessary

Originallythesystemwasthatyouneededtogettheconsentofthepropertyowner,butthenalso

takepossessionofthepropertybeforeyoucouldassertyourpropertyrightagainsta3rdparty

Provingownershipcomplicatedassocietymovedawayfromnemodat

Moreaccurate,butmoreexpensiveanddependsonlazyandincompetentgovernment

workers

Alsoleavesaracingproblemincaseofairplanes,boats,etc

i.e.USPTOregistration

Registrationresolvespotential

disputes

at

the

time

of

the

transfer

Problemwithinaccuracy,especiallywithartworkbecausetheyjustforge

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