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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!
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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)?
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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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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
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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
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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
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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)
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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:
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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
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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
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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:
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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
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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)
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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)
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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
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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:
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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
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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
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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
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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