Property Law 2016 - s3-ap-southeast-2.amazonaws.com€¦ · 3 (1) Possession..... 46 (1A) Legal...

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PropertyLaw

2016

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Topic1.1:IntroductiontoProperty......................................................................13

MeaningofProperty........................................................................................13(a)Definitionaccordingtofeaturesofproperty................................................14Featuresofproperty(Blackstone)......................................................................14Featuresofproperty...........................................................................................17MillirrpumvNabalco(1971)...............................................................................17MabovStateofQld(2)......................................................................................18

(b)PropertydefinedwithreferencetoContent(Honore).................................18Bundleofstickmetaphor...................................................................................19

(c)Propertydefinedasarelationship...............................................................19YannervEaton....................................................................................................20LegalquestionandsubmissioninYanner...........................................................21DecisionofthecourtinYanner..........................................................................21

(d)Propertyasobjectofpubliclaw/humanright.............................................22Preliminaryfindings............................................................................................23

Justificationofproperty...................................................................................24SourcesofPropertylaw...................................................................................24

Topic1.2:NewFormsofProperty........................................................................26

Newformsofproperty.....................................................................................26Virtualproperty..................................................................................................26Resourcesoutsideofprivateownership............................................................26Naturalresources...............................................................................................27(a)Resourcesincapableofownership................................................................27(b)Resourcesincapableofownership................................................................29(c)Resourcesincapableofownership................................................................31

Topic1.3:Contractual&PropertyRights..............................................................33

ContractualRights............................................................................................33PropertyRight..................................................................................................33DistinctionbetweenLeaseandLicence..............................................................34LeaseandLicence...............................................................................................35Lease...............................................................................................................35Licence............................................................................................................35Differentiation................................................................................................35CowellvRosehillRacecourseCoLtd(HK).......................................................35

Summary.............................................................................................................36Classification.......................................................................................................37Classificationwithreferencetojurisdiction:......................................................38Classificationaccordingtonature......................................................................38Historicaldifferences..........................................................................................38Realproperty..................................................................................................38PersonalProperty...........................................................................................39Leases.............................................................................................................39

Summary..........................................................................................................40Topic1.4:AirRights,TDR&CarbonRights...........................................................42

Topic2.1:PossessionandTitle.............................................................................46

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(1)Possession...................................................................................................46(1A)LegalConsequencesofPossession............................................................47(1B)ScopeofPossessoryTitle..........................................................................48(1C)PossessoryTitleofPersonalProperty........................................................49FindersKeepersRule(CB2.12)àLOOKATFINDERSPRINCIPLEatbottomoftopic....................................................................................................................49WaverleyBoroughCouncilvFletcher.............................................................50

(1D)Enforceabilityofpossessorytitle..............................................................51(1E)Competitionbetweenpossessorytitleholders..........................................51(1F)Priorpossessorytitleandnativetitle.........................................................53(Mabo2).............................................................................................................53

(1G)Bailment(notthatimportantinourcontext)............................................53‘Seisin’.................................................................................................................55Importanceofpossession...................................................................................55

Questions.........................................................................................................56Summary:Finder’sPrinciple.............................................................................57

Topic2.2:Fixtures................................................................................................59

FIXTURESANSWERPLAN..................................................................................59Fixtures............................................................................................................60RelevanceoftheRule.......................................................................................61TwoTests............................................................................................................62(1)DegreeofAnnexation(startingpoint)......................................................62(2)ObjectofAnnexation................................................................................63Factors............................................................................................................64ElitestoneLtdvMorris(HL)UK.......................................................................65

Tenant’srighttoremove....................................................................................66Thirdparties.......................................................................................................67Statutoryprotection.......................................................................................70

FixturesExercise2.1.........................................................................................70Question2..........................................................................................................71

Topic3.1:AdversePossession..............................................................................72

PrincipleofLimitation......................................................................................72Example:JAPye(Oxford)vGraham(HL)............................................................72

MeaningofAdversePossession........................................................................73TitleHierarchy..................................................................................................74RationaleforAdversePossession.....................................................................74Requirements/Elements...................................................................................751)Factualcontrol:...............................................................................................753)Limitationperiod............................................................................................75ElementsinDepth..............................................................................................76(1)Factualcontrol...........................................................................................76(3)Limitationperiod.......................................................................................79

AdversePossession(Part2)..............................................................................81Continuousuninterruptedpossession..............................................................81KierfordRidgePtyLtdvWard.............................................................................81

AgainstwhichOwner.......................................................................................82

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Important:..........................................................................................................82GeneralPrinciple1.............................................................................................83

Expeditingadversepossessionperiodagainstfuturetitleholders....................83LimitationsofActionAct1958(Vic)s10(2)**OnlyforFutureTitleOwners/futureinterests...................................................................................................83GeneralPrinciple2.............................................................................................84CasebookExamplepg.166.............................................................................84

Adversepossessionagainstlesserinterest.......................................................85Crownland.......................................................................................................85AgainsttheCrown/statutorybodies.................................................................86

Interruptionofadversepossession...................................................................861.Assertionoftitle.............................................................................................862.Acknowledgmentoftitle:...............................................................................863.Abandonmentofpossession:.........................................................................87

DisabilityandFraud(extension).......................................................................87Itisimportanttoconsiderwhoisthepapertitleownerandwhoistheadversepossessor?Ifpapertitleownerisadisabledpersonthenthismightberelevant.Orifthe…isafraudsterthenthismightberelevant........................................87Disability.............................................................................................................87Fraud...................................................................................................................87Sections..............................................................................................................87

Consequencesofadversepossession...............................................................88ConsequencesofadversepossessionunderTorrens.........................................88ConsequencesofadversepossessionunderTorrens.........................................89

Proceduralaspects...........................................................................................89Adversepossessionandhumanrights..............................................................89Answerplan(CaseBookpg.204)......................................................................90

Topic4:DoctrineofTenure..................................................................................93

History.............................................................................................................93TenureDefinitions............................................................................................93Doctrineoftenure............................................................................................94TenureReform.................................................................................................94DoctrineofTenuredistinguishedfromallodialtitle(Europe)anddoctrineofestates.............................................................................................................95PrinciplesofSettlement...................................................................................95Settlement..........................................................................................................96

AdoptionofFeudalTenureinAustralia............................................................96FeudaltenureAustralia......................................................................................97

Scotland...........................................................................................................97DoctrineofTenure:NativeTitle...........................................................................99

NativeTitle.......................................................................................................99MabovQld(1)....................................................................................................99Mabo(2)...........................................................................................................100(a)IndigenousPossession.............................................................................100(b)Rejectionofthefeudaltenuresystem....................................................101(c)Rejectionofenlargedterranulliusdoctrine............................................101

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Radicaltitle.......................................................................................................102Summary........................................................................................................103Remainingfeaturesofdoctrineoftenuretoday..............................................103

NativeTitleDefinition,Nature&Establishment.............................................105NATIVETITLESUMMARY................................................................................105NativeTitleDefinition....................................................................................109

ExamplesofNativeTitle...............................................................................110MabovQld1................................................................................................110MabovQld2................................................................................................111

Radicaltitle–thetoolthecourtresortedto....................................................112ExtinguishmentofNativeTitle.........................................................................113

NatureofNativeTitle.....................................................................................113FeaturesofNativeTitle..................................................................................114DynamicNature–canbeaproblem................................................................115EstablishingNativetitle................................................................................115YortaAboriginalCommunityvVictoriaàanexplanationofrequirementsofNTAct...........................................................................................................116(X)BennellvStateofWA[2006]FCA1243–frozenintime.......................118YannervEaton..............................................................................................119

ApproachingaQuestion.................................................................................119SummaryofQuestionsifyouhaveaNativeTitleinterestyouwanttoprove.120

NativeTitleExtinguishment,Expiry&Act.......................................................121NativeTitle.....................................................................................................121TerminationofNativetitle.............................................................................122Extinguishment..............................................................................................122FormsofExtinguishment..................................................................................122

Non-Extinguishment.......................................................................................123LegislativePowerswithregardtoNativeTitle................................................123Constraintsonlegislativepowerstoextinguishordiminishnativetitle:.........124SusceptibletoDestruction/Termination..........................................................124InconsistentGrant(Mabo2)............................................................................124FejovCommonwealth..................................................................................125WikPeoplevQueensland–hadfarreachingconsequences........................125WAvWard....................................................................................................128WAvBrown(HCA)[notinStudyGuideortextbook]–illustrateshowtoapplyprinciples......................................................................................................129

NativeTitleAct1993......................................................................................130RecognitionofNT...........................................................................................130DeterminationofNativeTitle(s225)...............................................................131PublicRegisters.................................................................................................131

Acts................................................................................................................131Validationof:PastActs..................................................................................131IntermediateActs-between1Jan1994andWik(1996)................................132FutureActs(adoptionofNTAonwardscuttingouttheintermediateacts).....133

Summary........................................................................................................134Topic6.1:DoctrineofEstates.............................................................................135

ESTATESANSWERPLAN.................................................................................135

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DoctrineofEstates.........................................................................................138Estates...........................................................................................................138FreeholdEstates...............................................................................................140Seisin.............................................................................................................140

FeeSimple........................................................................................................140ToCreateaFeeSimple.................................................................................140ModernMeaningofaFeeSimple................................................................141

LifeEstate.........................................................................................................142GrantingaLifeEstate...................................................................................142

FutureInterest..................................................................................................143FormsofFutureInterests.............................................................................144Summary.......................................................................................................144

DoctrineofEquitableWaste.............................................................................144StatutoryRequirementsforCreationofanEstate:Deed................................145Writing..............................................................................................................145NemoDatQuodNonHabetRule.....................................................................146Examples:......................................................................................................146

VestedandContingentInterests....................................................................1473CategoriesofInterest....................................................................................1483)DeterminableInterest..............................................................................148

Distinction.........................................................................................................150ImportanceofDistinction.............................................................................150ZapletalvWright–dealswiththedistinction..............................................150

Summary........................................................................................................151DoctrineofEstatesRemainders&Reversions................................................152FutureInterests..............................................................................................152(A)VestedremainderInterests:.......................................................................152

(B)ContingentLegalRemainderInterest........................................................1524SetofRules................................................................................................153

Trust..............................................................................................................155(6.3)RestrictionsontheRighttoAlienate......................................................155RestraintsagainstAlienability..........................................................................156Policy................................................................................................................156HallvBust.....................................................................................................157NullagineInvestmentsPtyLtdvWAClubInc...............................................157EltonvCavill.................................................................................................158JohnNitschkeNomineesPtyLtdvHahndorfGolfClubInc...........................159

Conclusion.....................................................................................................159Questions.......................................................................................................160

Topic7.1:Leases................................................................................................163

LEASESANSWERPLAN....................................................................................163Leases...............................................................................................................165

HistoricalDevelopment..................................................................................166CharacterofaLease.......................................................................................166EssentialElements..........................................................................................167DifferentFormsofLeases...............................................................................167(1)FixedTermLease–e.g.1year(starts1/1/16ends31/12/16)...................168

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(2)PeriodicTenancy–e.g.monthtomonthdependantonrentpayment......168(3)TenancyatWill............................................................................................168(4)TenancyatSufferance.................................................................................169

RequirementsforCreationofaLease.............................................................169(a)Statutoryformalities.................................................................................170(b)ExclusivePossession.................................................................................170

RadaichvSmith(1959)HighCourt...............................................................171StreetvMountford[1985]AC809................................................................171BrutonvLondonQuadrantHousingTrust(HL)–thisdecisionillustratesincorrectprinciples.......................................................................................172

(C)CertaininDuration....................................................................................173Examples.......................................................................................................174

(5)EquitableLease...........................................................................................174(a)The‘WalshvLonsdale’equitablelease...................................................175(b)Tenancybyestoppel...............................................................................175

(6)TenancybyEstoppel...................................................................................176RighttoAssignorSub-Lease...........................................................................177AssignmentandSublease.................................................................................178Assignment...................................................................................................178Sublease........................................................................................................178

PrivityofContract–partiestoacontract.......................................................178PrivityofEstate..............................................................................................179RelevanceofdistinctionbetweenPrivityofContractandPrivityofEstate.....179

LeasesRights,Duties,TerminationandRemedies..........................................181UsualCovenants(UsualTermsinaCT)...........................................................181ImpliedCommonLawCovenants...................................................................181

TestofImplication........................................................................................181CommonLawDuties......................................................................................181(1)DutyofReasonableRepairbyLandlord......................................................181(2)DutytoExerciseReasonableCarebyLandlord...........................................182DutyofCare..................................................................................................182DifferentFormulationsofDutyofCare........................................................183

(3)ImpliedCovenanttoProvideTenantwithQuietPossession......................183(4)ImpliedCovenantofNon-DerogationfromGrantbyLandlord..................184(5)ImpliedCovenanttoUsePremisesinaTenant-LikeMannerbyTenant....184(6)ImpliedDutybyTenantnottoCommitWaste...........................................184(7)ImpliedDutyofTenanttoYieldUpPossessionattheEndofLease...........185

ExpressContractualDuties.............................................................................185TerminationofLease......................................................................................186Remedies.......................................................................................................186Termination:Forfeiture....................................................................................187ProgressiveMailingHousevTabaliPtyLtd..................................................188

Repudiation......................................................................................................188ChanvCresdon.............................................................................................189

HybridNatureofaLease................................................................................189Tenant’sFixtures............................................................................................190ReviewQuestions...........................................................................................190

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Topic8.1:EquitableInterests.............................................................................192

HistoricalBackground....................................................................................192EquitableInterests.........................................................................................193DevelopmentofEquitableInterest.................................................................194The“Use”(theTrust)......................................................................................195

DKLRHoldingsCoPtyLtdvCommissionerofStampDuties.........................196InterestofBeneficiary....................................................................................196TypesofTrusts...............................................................................................197ExpressTrust....................................................................................................198DutiesofTrustees.........................................................................................199RightsofBeneficiaries..................................................................................199

ResultingTrust..................................................................................................199ConstructiveTrust............................................................................................203MuschinksivDodds......................................................................................203BaumgartnervBaumgartner(HC)................................................................204

RequirementsforRemedialConstructiveTrust...............................................204Ifsomeonehascreatedanimpressionthatacertainstateofaffairsexisted,andsomeoneelseactedtohisdetriment,thecreatoroftheimpressioncansometimesbeestopped,andaconstructivetrustcanbecreated..............205GiumellivGiumelli–.....................................................................................205Ø anexampleeventhoughHCdidn’trecogniseatrustbutfactsillustrateapossiblescenarioorexamplewherewecanconstrueatrustwithreferencetoestoppel....................................................................................................205

InstitutionalConstructiveTrust........................................................................206àInstitutionalConstructiveTrust:SaleßIMPORTANT(commonsituation) 206àTanwarEnterprisesPtyLtdvCauchi........................................................207

EquitableInterests,FormalityRequirementsandMereEquities.....................209OtherEquitableInterestsinLand...................................................................209FormalityRequirementsforEquitableInterests.............................................212Pre-ConditionsforcreatinganExpressTrust...................................................212Summaryofformalityrequirements................................................................213

DoctrineofPartPerformance.........................................................................214Requirements...................................................................................................214

EnforcementofEquitableInterests................................................................215EquitableRemedies..........................................................................................215WestdeutscheLandesbankGirozentralevIslingtonLondonBoroughCouncil......................................................................................................................215

MereEquities(subcategoryofequitableinterests).........................................215WhatisaMereEquity?................................................................................216Sometimesamereequityhasproprietaryfeatures,sometimesithaspersonalfeatures:.......................................................................................................216ProprietaryCharacter...................................................................................216PersonalNature............................................................................................217Mereequityinacourtcase:.........................................................................217LatecInvestmentsLtdvHotelTerrigalPtyLtd..............................................217RutholPtyLtdvMills....................................................................................218

HierarchyofInterests.....................................................................................219

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Questions.......................................................................................................219Topic9.1:Easements.........................................................................................222

NaturalRights................................................................................................222NatureofEasements......................................................................................222SubstantiveRequirementsforaValidEasement............................................223Elements...........................................................................................................2231)RequirementofDominantandServientTenement.................................2242.EasementMustAccommodateDominantTenement..............................2243.DominantandServientOwnersmustbedifferent...................................2254.RightmustbeCapableofFormingSubjectMatterofaGrant.................226

CommonEasements.......................................................................................228CreationofEasements...................................................................................228DistinctionbetweenGrantsandReservations.................................................229Grant(wherethenewpurchaserrequirestheeasement)...........................229Reservation(wheretheseller/ownerstillrequiresaccessandthereforeaneasement).....................................................................................................229

1.ExpressGrantandReservation...................................................................229EquitableEasement......................................................................................230

2(a).ImpliedGrant.........................................................................................230Presumptions................................................................................................231

ContinuousandApparentEasements..............................................................233Non-DerogationPrinciple.................................................................................233

2(b).Necessity................................................................................................2342(c).CommonIntentionorConstruction........................................................235CommonIntention:..........................................................................................235Construction.....................................................................................................236

3.EasementbyPrescription...........................................................................237DifferencetoAdversePossession....................................................................238Timing...............................................................................................................238TorrensSystem–notapplicable......................................................................238

Summary........................................................................................................2394.EasementbyStatute...................................................................................239EasementsModification,Extinguishment&ProfitaPrendre..........................240ConstructionofEasements.............................................................................240Remedies.......................................................................................................241ModificationorExtinguishmentofEasements................................................242ExpressRelease................................................................................................242UnityofTitle.....................................................................................................242ChangesinCircumstances................................................................................243ChangeofUse...................................................................................................243AbandonmentbyNon-User..............................................................................244

ImpactofAbandonmentonRegistration........................................................246EasementofProfitÀPrende(RightofTaking)................................................246RightisqualifiedtonaturalproduceàFructusNaturales;Industrialis..........246EnterLand.........................................................................................................246RentCharge......................................................................................................247

Questions.......................................................................................................247

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Topic10.1:RestrictiveCovenants.......................................................................251

Summary/Walkthrough..................................................................................251Nature............................................................................................................252IssuesExample:.................................................................................................253

Definition.......................................................................................................254AusterberryvCorporationofOldham..........................................................254AusterberryPrinciple....................................................................................255

(2)PassingofBenefitofaRestrictiveCovenantUnderCommonLaw.............256Requirements(beforethiscantakeplace):.....................................................256TouchandConcern&IntentiontoBind.......................................................257

(3)PassingoftheBurdenofaRestrictiveCovenantinEquity.........................258ExceptionDevelopedinEquity.........................................................................258PassingofBurdeninEquity..............................................................................259AttachingBurdenofCovenantinEquity:Burden.............................................2611)RestrictiveRatherThanPositiveinNature...............................................2612);3)CovenantMustBenefitIdentifiableLand............................................2614);5)IntentiontoImposeBurdenUponaKnowingSuccessorinTitle........262

TorrensLand.....................................................................................................263Examples...........................................................................................................263

(4)PassingofBenefitofCovenantinEquity...................................................264RestrictiveCovenantsAssignment&BuildingSchemes..................................265AssignmentofBenefitofCovenantatLaw.....................................................265StatutoryRequirements(s.134PLA)................................................................266

AssignmentinEquity......................................................................................266Summary...........................................................................................................266

RestrictiveCovenants:BuildingSchemes........................................................266DoctrineofBuildingSchemes...........................................................................267SmallvOliver&Saunders(Dev)PtyLtd........................................................268

ModificationandExtinguishmentofRestrictiveCovenants............................269ModificationandExtinguishmentofRestrictiveCovenantsbyStatute:S84PLA(Vic)...................................................................................................................269Section84formulatedinStanhillPtyLtdvJackson.....................................270

RemediesforInfringement.............................................................................271Topic11:Mortgages...........................................................................................273

SecuredLoan..................................................................................................273TypesofMortgages........................................................................................273PossessorySecurities......................................................................................274OldTitleMortgage(CLandoldAussystem)...................................................275Redemption...................................................................................................276TorrensMortgages.........................................................................................277ContractualFormalities..................................................................................278EquitableMortgages......................................................................................2781)FormalMortgageOverEquitableTitle.........................................................2792)FormalMortgageImproperlyExecuted.......................................................2793)SpecificallyEnforceableAgreementtoMortgage........................................2794)MortgagebyDepositofTitleDeeds/documents.........................................280

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Rightsoftheparties.......................................................................................282RightsofMortgagor(Debtor).........................................................................282RightsofMortgagor:(1)EquityofRedemption...............................................282OldTitleMortgage........................................................................................282EquityofRedemption:..................................................................................283ClogsOnEquityofRedemption....................................................................283

RightsofMortgagor:(2)Possession.................................................................284RightsofMortgager:(3)Leases........................................................................285

RightsoftheMortgagee(Bank/Creditor).......................................................286RightsofMortgagee:(1)RighttoSueforLoanMoney....................................286RightofMortgagee:(2)RighttoAlienatethesecurityinterest.......................286RightofMortgagee:(3)RighttoPossession....................................................287RightoftheMortgagee:(4)Foreclosure..........................................................287RightoftheMortgagee:(5)Mortgagee’sPowerofSale..................................288MannerinwhichsalemustbeConducted(Vic)...........................................289

DischargeofMortgage...................................................................................292PropertyExam–RevisionLecture......................................................................295

ExamStructure.................................................................................................295Hints:................................................................................................................295ExamPaper1;2015..........................................................................................295

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Topic 1.1: Introduction to Property

Ø MeaningoftheconceptofpropertyØ JustificationofprivatepropertyØ SourcesofPropertylaw

MeaningofProperty• Propertymeansdifferentthingstodifferentpeopleandtheconceptisused

indifferentcontexts• Threebasicmeanings:

1. Thingspeopleown2. Thingsthemselves

• Objectsthemselves• Land(realproperty)

• Fixtures(fixedtohouse&land)• Chattels(Goods)(personalproperty)• ChattelsReal

• Bookcanbeaproperty,butownershiporrighttotheobjectisanotherthing.

3. Rightswhichpeoplehavetothings• Propertyright:righttolandorgoods(tobedistinguished

from)• Personalright:righttoanotherpersonintermsofacontract

• Propertyisaplatformforrestofprivatelaw(Smith)DefiningPropertyLaw

• Propertycanbedefined:(a) withreferencetoitsfeatures

a. certaincharacteristicsallowsthethingtobeclassified(b) ordistinguishingitfromapersonalright

a. aspropertyrightsarenotcontractualrights(c) withreferencetoitscontent

a. whatisincludedintheideaofproperty(d) asarelationship

a. abroaderapproachbyseeingpropertyasarelationshipbetweenthepersonsandtheobjectanddifferentpersons

(e) asanobjectofpubliclaw/humanrighta. E.g.BillofRightsdoesnotallowyoutbedeprivedofyour

propertywithoutdueprocessoflawb. Noprivateownershipofland/river/mountainsinChina,it

isallgovernmentowned(Communism),whereasinAustraliaifyoubuyahouseyouownthehouseitself,thelandunderneath,thewateretc.

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OwningyourBodyandLife

• Lifeo NotrecognisedinAustraliaforeuthanasiao Auto-Icon–namingaphilosophersbodyandgivinghisbodytoa

museum• BodyParts

o RecognisableinAustralianlawtodonateorgans(a)DefinitionaccordingtofeaturesofpropertyBlackstone’sCommonlawdefinition:“Thereisnothingwhichsogenerallystrikestheimaginationandengagestheaffectionsofmankind,astherightofproperty;orthatsoleanddespoticdominionwhichonemanclaimsandexercisesovertheexternalthingsoftheworld,intotalexclusionoftherightofanyotherindividualintheuniverse.”(BlackstoneCommentariesontheLawofEngland)(CB3)

Featuresofproperty(Blackstone)ThefollowingfeaturescanbededucedfromBlackstone’sdefinition:

(a)Dominion(righttouseobject)• Controlexercisedbyapersonoveranobject• Dominiondenotessomelegallyauthorisedpower• Powerconcentratedinaspecificperson(s)(“sole”oneperson):

• Righttoabicycle(propertyright)vsrightofaccesstolibrary(personalright)

• Indigenousrightsconcentratedinclan/group• Somepoweroverthatbook

(b)Thingsoftheworld(External)• Thenotionofa‘thing’• Outsideofaperson

o Thehumancannotbetheobjectorproperty§ E.g.physicalproperty(land,chattels),orintangible

(intellectualproperty,shares,trademarksetc.)• Thingsmustbeseparateandapartfromourselves• Importanceofobjectinpropertyrelationship(Lametti)

(c)Externalised• Demarcationofproperty/boundaries

o E.g.ahousehasaboundarythatisidentifiable.• Thingsthatareunequalbetweenmen:

“Thefirstmanwho,havingfencedinapieceofland,said‘Thisismine,’andfoundpeoplenaïveenoughtobelievehim,thatmanwasthetruefounderofcivilsociety.Fromhowmanycrimes,wars,andmurders,fromhowmanyhorrorsandmisfortunesmightnotanyonehavesavedmankind,bypullingupthestakes,orfillinguptheditch,andcryingtohisfellows:‘Bewareoflisteningtothisimpostor;you

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areundoneifyouonceforgetthatthefruitsoftheearthbelongtousall,andtheearthitselftonobody’.Jean-JacquesRousseau(DiscourseontheOriginandBasisofInequalityAmongMen)

(d)Exclusion• Toexcludeothersfrom:

(a) enjoyingsamerights;or§ Preventingsomeonefromenjoyingthesamerightsor

havingaccessfromwhatyouhave.(b) interferingwiththeexerciseofrights

§ Exclusion§ Notphysicalbutthelawrecognisesyouentitledtoexclude

everyoneelse,andthispowerwillbeenforcedifbroughttocourt.

• Statecanenforceexclusion(matteroflawnotpower)• Exclusionservestheuseinterestsofproperty(Smith)• Propertyconsistsprimarilyincontroloveraccess–excludable-(Gray)

o Controllingaccesstothatproperty–excludabilityisanimportantfeatureofproperty.

o Feasibletoregulateaccessbyexcludingotherpeople.o Excludableifitisfeasibleforapersontoexerciseregulatory

controloveraccessofstrangerstobenefitsofresource(Gray)• Criticism:

o Notanabsoluteconcept(“total”)–onemaynotinterferewithrightsofothersorpublicproperty,healthandsafety

§ Notatotalconcepttoexcludeeveryoneallthetimeforever.

o E.g.therightsofsomeoneelseo Nottheonlyrightinherentinproperty(thereareother

associatedrights)o Exclusionisnotacharacteristicofindigenousrelationship:

connectionwithlandratherthanexclusion§ Mabocase

(e)Transferabilityofright• Propertyrightsaresaidtobetransferable/assignableandthisisan

importantfeature.• Criticism:

o Toowide.Mostrightsaretransferable(includingpersonalrights)o Notauniquefeatureofpropertyasyoucanalsoassignrightina

contracto Somepropertyrightsarenottransferrableorassignable(seenin

CTclause)o Somepropertyrightsarenotassignable(non-assignability

residentiallease)o Nativetitlerightsarenottransferable(Millirrpum)

§ Theexception§ Onlytransferrablefromgenerationtogeneration

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(f)Enforceabilityofrightagainstotherpersons• Rightinrem(operatesagainsttheworld)isapropertyright

o Enforceableagainstalargeandindefiniteclassofpeopleo Continuedexistenceofathingisrequiredo Ratheraconsequenceorfeatureofapropertyrightthan

identificationtool• Criticism

o Aconsequenceratherthanafeatureo Mustacceptthisapproachisuniversallyaccepted.

Universalacceptanceofinremoperationofapropertyright:“Arealright,suchasownership,isaseveryfirstyearlawstudentknows,enforceableagainstthewholeworld.”(XZSIndustriesvAFDreyer(Pty)Ltd(2004(4)SA186(W)196F/G)

• Rightinpersonam(enforceable@person)–personalrighto Enforceableagainstspecificperson(partiesprivytorelationship)

§ Notdependantonexistenceofthingo Basisfordivisionbetweenpersonalrightsandpropertyrights

(g)Value• Marketvalue• Notnecessarycharacteristicofproperty• Sentimentalvaluejustbecauseofnomarketvalue• Negativevalue?(toxicchemicals)• Personalrightsalsohavemarketvalue

(h)Legalrecognition• Canarguethatapropertyrightisuselesswithoutbeingenforceable.• Propertyrightsmustberecognisedandlegallyenforceable.• ‘Propertyandlawareborntogetheranddietogether.Beforelawswere

madetherewasnoproperty.Takeawaythelawsandpropertyceases’(Bentham)

• Itisalegalconstruct:thereisnopropertyinabsenceofalegalsystem• Thisisnotuniquetopropertyrights• Legalidentityofpropertydependsonlegalsysteminwhichitisenforced:

Commonlaw,Equityorstatute• Otherrightsarealsorecognisedbylaw• Aboriginalrightsrecognisedasproprietarybecausethecommonlawand

statutoryframeworkrecognisethem• Aboriginalrightsonlyrecognisedifrightshavetheirorigininpre-sovereignty

lawandcustom(YortaYorta)• Pre-sovereigntyrightsmayencumbertitleofCrownuponcolonisation• Post-colonisationaboriginalrightsaredestroyed• Onemustnotoverstateessentialcharacteristicsofpropertytoidentify

property(seeforexampleMillirpumdecision)

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Featuresofproperty• Useandenjoymentofland/goods• Excludability• Enforceability• Externaltohumans• Alienability• Value(economic,sentimentalornegative?)• Legalconstruct

• Identifiable(boundaries)• Definable• Controloveraccess

• ProblemExample:

o Takingcellsfromahuman.ConfrontedbyCourt.Mustexplainthenewproductisapropertyornot,andcheckagainstthesefeaturesofitispropertyornot.

• Criticismoffeaturesapproacho Onemustnotoverstateessentialcharacteristicsofpropertyto

identifyproperty(Millirpumdecision)

MillirrpumvNabalco(1971)• NotrecognisedbutlaterrecognisedinMabo.

o Illustratesimportanceinlookingthroughmirrorsofcommonlawandtryingtoidentifyifsomethingisproperty.

• Facts:o Claimthataminingcompanywasinterferingwithrighttoperform

ritualceremonies• Issue:WhetherAboriginalcustomaryrightsoverlandqualifiedas‘property’

o Judgefollowedcharacteristicsandwhethernativetitlemetthesecharacteristics.

o ‘Ithinkthatpropertyinitsmanyforms,generallyimpliestherighttouseorenjoy,therighttoexcludeothers,andtherighttoalienate.Idonotsaythatalltheserightsmustco-existbeforetherecanbeproprietaryinterests,ordenythateachofthemmaybesubjecttoqualifications.’(BlackburnJ)

o Accordingtothecourtthefollowingincidentsofpropertywereabsent:

§ Rightofclanextendedtoperformanceofritualsonly(nouseandenjoyment);

§ Norighttoexcludeothermembersorotherclans(notexclusionary);

§ NorighttoalienatethelandbecauseAboriginalcustomprohibitedtransferofrights(inalienable)

• Held:

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o AbsenceofpropertyrightstolandinAnglo-Australianmeaningoftheterm

• Criticism:o Rightrelatedtolandtowhichtheywereconnectedo Hadpowertoseverconnectionwithlandbymovingawayo Righttoperformceremoniescanbeapropertyright(similarand

comparetoeasement)o Themerefactthesefeatureswerenotpresentdoesnotmeanitwas

notapropertyinterest

MabovStateofQld(2)• Nativetitlerecognisedbythecommonlawdespitethefactthatitdidnot

fittheWesterndefinitionofpropertyo Buthascertainspecialfeatures

• Nativetitle:interestsandrightsofindigenousinhabitantsinland,whethercommunal,grouporindividual,possessedunderthetraditionallawsacknowledgedbyandthetraditionalcustomsobservedbyindigenousinhabitants(BrennanJ)(Vides223NTA(CB16)

• Nativetitle(specialformofproperty)hasitsownspecialfeatures:o Nativetitleisinalienable(gentogen);o Nottransferabletothirdparties(gentogen)(transferredfrom

generationtogenerationortoCrownitoitspre-emptiveright);o Nativetitleisvulnerable,asitcanbeextinguishedbytheCrown’s

exerciseofradicaltitleo Traditionalbeliefofbelongingtoland

• Despitelimitations,Bartlettstillarguesitisapropertyrightinasensethatif

Federalgovttakestherightsaway,youcanreceivecompensationect..• Nativetitleisproprietary(Bartlett):

o Claimforcompensation(s51(xxxi)CA1901(Cth))o Exclusionarybecauseofavailabilityofequitableandcommonlaw

remedieso BurdenuponCrowntitle

(b)PropertydefinedwithreferencetoContent(Honore)• Forexample

o ContentinsidetheCokeBottle• Propertyisabundleofrights• Propertyincludefollowingelements(formingbasisof)property:

1. Righttopossess(exclusivephysicalcontrol)2. Righttouse(useandenjoyment)3. Righttomanage(determinewhomayuseandhow)4. Righttoincome(righttovaluegeneratedbything)5. Righttocapital(righttoconsume,wasteanddestroy)6. Righttosecurity(righttoexcludeothers)7. Poweroftransmissibility(righttotransfer)8. Absenceofaterm:indefiniterighttoenjoy,doesnotterminate

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9. Prohibitionofharmfuluse(refrainfrominterfering)10. Liabilitytoexecution(liabilityforsatisfactionofdebt)11. Residuaryrights(rightswhichgovernsentitlementsofothers)

Rightstakeninabundleandstatesas‘property’.

Bundleofstickmetaphor• Itconfersupontheholdera‘bundleofrights’whichreferstotheaggregate

ofrightsassociatedwithpropertyenforcemento Butcansplitownerinlegalandequitableinterestovertheproperty.

• Providesanaccuratedescriptionofwhomcandowhattowhominarelationship

• Problemswith“bundleofsticks”metaphor:o Abstracttreatmentofproperty,eachandeverycaselookedatinthe

samebundleandnotamodernwaytoobserveito Definesaccordingtoconstituentpartsandtreateachparcelofland

similaro Problematicwithpropertisationofnaturalresourceso Attempttoanalyselegalrelationshiptosmallestatoms(Smith)o Moreofadescriptionthanatheory(Smith)

• “Bundleofsticks”metaphorfocusesonthecollectionofinterrelatedrightsratherthanasingledefinednotion

(c)PropertydefinedasarelationshipPropertyisperceivednotasarightoveranobjectbutrighttoarelationship.

• Laylanguage:specifictangibleobjecto Nottherighttothebookbuttherelationship(Hohfeld)

• HohfeldrejectedBlackstone’sideaofpropertyasanabsoluterightandcharacterisationasaphysicalthing

o Itisanabsoluteright(notalwaystruethough),andthatpropertymaintainsarelationship.

• Theownerofthebookhastherighttotheobject,butcanexpectyounottointerferewiththeexercisableright.

• Allrightsareconcernedwithrelationshipsandnotthings(Hohfeld)• Ratherarelationshipbetweenanindividualandanobject/rightratherthan

theobject/rightitself(relational)o Propertyisarelationalfocusratherthanobjectfocus.

• Thingsformthebackdropofrelationships(Smith)• MoreEuropeanoutlook:

Arelationshipentails:(a)relationshipbetweenpropertyholderandthing;and(b)relationshipbetweenpropertyholderandthirdparties(exclusion/enforceability)

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Thefirstrelationshipinvolvestheuseandenjoymentoftheobject,theotherrelationshipinvolvestheelementofexcludability(animportantfeature).

• Relationshipcanbebrokendownintopowers,duties,rightsandimmunities• Propertyisan“exclusiveandprivaterelationship,whichanindividualhas

withanobjectorresourceswhichisenforceableagainsttherestoftheworld.”(Hepburn1stedCB7)

o SoundslikethewordsofBlackstone

YannervEatonPropertyisinvestigatedbytheHighCourt

Facts:• Argued:huntingofcrocodilesamountedtoanexerciseofnativetitlerights

protectedbyNativeTitleActandtheConstitutiono Maintainedaninterestthroughtheirtraditionallawsandcustomsto

catchcrocodilesforceremonialpurposes.• MagistratedecidedtheyhadaNativeTitleinterestandentitledtoexerciseit.

o HuntingofcrocodilesisintermsofaNativeTitleright(Maborecognised).

Appeal:• Itwentonappeal.QueenslandarguedtheConservationActs7.• Counterargument:HuntingrightsextinguishedbyFCA• S7(1)oftheFaunaConservationAct1974(Qld):

“Allfauna,savefaunatakenorkeptotherwisethanincontraventionofthisAct,duringanopenseasonwithrespecttothatfauna,isthepropertyoftheCrownandundertheControloftheFaunaAuthority”.

• Issues:o Meaningofs7(1)FCAanditsprovisionthatsomefaunaisthe

propertyofCrown• Fauna:bird/mammalindigenoustoAustralia• PropertyoverthatmammalvestedintheCrown.

o Didvestingof“property”createrightsinconsistentwithrightsofhunters(andextinguishedrights)?

• PropertyasdefinedinYanner“Theword‘property’isoftenusedtorefertosomethingthatbelongstoanother.ButintheFaunaAct,aselsewhereinthelaw,‘property’doesnotrefertoathing;Itisadescriptionofalegalrelationshipwithathing.Itreferstoadegreeofpowerthatisrecognisedinlawaspowerpermissiblyexercisedoverthething.Theconceptof‘property’maybeillusive.Usuallyitistreatedasa‘bundleofrights’.Buteventhismayhaveitslimitsasananalyticaltooloraccuratedescription,anditmaybe,asProfessorGrayhassaid,thatthe‘ultimatefactaboutpropertyisthatitdoesnotreallyexist:itisamereillusion.’”perGleesonCJ(CB13).

o Gray–thatpropertydoesn’texistanditisanillusion.Featuresofproperty(Yanner)

• Falsethinkingthatpropertyisathing

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• Ratheralegallyendorsedconcentrationofpoweroverthingsandresources• Propertyconsistsincontroloveraccess(Gray)• Propertyrelationshipisnota‘monolithicnotionofstandardcontentand

invariableintensity’• Comprehensivetermdescribingalloranyofdifferentkindsofrelationships

betweenpersonandsubjectmatter• Thefactthatthetermissocomprehensivepresentstheproblem,notthe

answertoit

LegalquestionandsubmissioninYanner1. WhatinterestinfaunawasvestedintheCrownwhentheFauna

ConservationActprovidedthatsomefaunawas“thepropertyoftheCrownunderthecontroloftheFaunaauthority”?o QLDargueditisfullandcomprehensiveownership.Itisnotnarrow.

ThereasonforarguingthisisbecauseifastatuteisinconsistentwithNativetitle,itwillextinguishtheNativeTitle.Ifitisnarrower,thenitcanoperatesidebyside.

2. ItwassubmittedthattheFaunaActgavefullbeneficialorabsoluteownershipofthefaunatotheCrown

3. Submissionwasfoundedonnotionthatpropertyisthewidestofallterms

DecisionofthecourtinYanner• SeveralreasonswhyCrown‘property’isnotaccuratelydescribedasfull

beneficialorabsoluteownership:1. DifficultytoidentifywhatfaunaisownedbyCrown2. Meaningoffullandbeneficialownershipofwildanimals?

• Wildanimalsatcommonlaw:limitedpropertyrights.Itisnotacompletepower.Ifyoucapturedit,itisyourownershipright,ifitisescapeditisnow.

• PropertyinActcannotbeequatedtopropertyofdomesticatedanimals

• Ownershipconnotesrighttohaveanddisposeofpossession(faunaoutsidepossessionanddisposition)

3. FaunaActsuggeststhatpropertyinfaunacannotbeequatedwithpropertyofadomesticatedanimal

4. ReasonsforvestingfaunainCrown:desirabilitytoprovideforsomevestingtocreateroyaltysystem

DecisioninYanner(continued)

• Vestingofsomeformofpropertywasdesired

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• Courtsaidthattheterm‘property’doesnotnecessarilymeanfull,exclusiveorbeneficialownership

• Itisvestedbystatute,andexpressedinalegalshorthandinthefacttheStatehaspowertoregulateandexploitcertainresources.

• PropertyvestedinFCA:aggregateofvariousrightsofcontrolbyExecutivethatthelegislationcreated:

1. Rightstolimitwhatfaunamightbetakenandhowitmightbetaken;2. Rightstopossessionoffauna;and3. Rightstoreceiveroyaltyinrespectoffaunathatwastaken

• TheCourtfoundthatthiswassomethinglessthanfullbeneficialownership.o Comment:Stateholdsfaunainsenseofimperium(andnotinsenseof

dominium):guardianshipofresources(Pound)§ Itisholdingitasanimperialpower.Theycanregulateitbut

doesnotownit.

• Nativetitleinterest(itos223NativeTitleAct):o Huntingintermsofthetraditionalcustomsandlawsoftheclano Bythoselawsandcustomstheclanhadalinktolando UntilpassingofFCArights/interestswererecognisedbycommonlaw

• Principle:o NTisextinguishedbycreationofinconsistentrightso IfyouhaveaNativetitleinterestinconsistentwithastatutoryintrest

itisextinguished.Ifitisn’t,itcancontinuetoeexist.• Regulatingthewayinwhichinterestmaybeexercisedisnotinconsistent

withcontinuedexistenceofNT

• EffectofFCA:establisharegimeforbiddingthetakingorkeepingoffaunaexceptpursuanttoalicencegrantedbyAct

• Regulatingaspectsofrelationshipwithlandbut:o DoesnotseverconnectionofAboriginalpeoplewithland;ando IsnotinconsistentwithcontinuedexistenceofNTinterests.

• TheFCA,withreferencetoNTAandConstitution,didnotprohibitorrestrictnativetitleholderfromhuntingcrocodilesforpersonalornon-commercial/communalneeds

• Held:Thus,theFCAdidnotextinguishNTinterests.

• Ifpropertywasabroadconcept,itwouldhaveextinguishednativetitleinterest,ifitwasnarrowitwouldnothaveextinguishednativetitleinterest.

(d)Propertyasobjectofpubliclaw/humanright

• “Propertyistheinstitutionbymeansofwhichallsocietiesregulatesaccesstomaterialresourcesorthings”(Sackville&NeaveAustralianPropertylaw1)

• USABillofrightsexample:“Nopersonshallbe.…deprivedof…property,withoutdueprocessoflaw…norshallprivatepropertybetakenforpublicuse,withoutjustcompensation…”

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(5thAmendmentoftheConstitutionoftheUSA)• S51CthofAustralianConstitutionAct1901:

“TheParliamentshall,subjecttothisConstitution,havepowertomakelawsforthepeace,order,andgoodgovernmentoftheCommonwealthwithrespectto….(xxxi)theacquisitionofpropertyonjusttermsfromanyStateorpersonforanypurposeinrespectofwhichtheParliamenthaspowertomakelaws;

• Victoria:“Property”isprotectedbys20ofCharterofHumanRightsandResponsibilitiesAct,2006(Vic):‘Apersonmustnotbedeprivedofhisorherpropertyotherthaninaccordancewithlaw’

Preliminaryfindings• Difficulttoidentifyasetofcorecharacteristics• Emphasisseemstobeplaceduponthecharacteristicofexcludability(making

itprivate)• Propertyrightsarelimited(numerusclausus):

o Freeholdestates;leaseholdestates;easements;profitsandmortgages

o Equitableinterests:beneficialownership(trust),equitablelease;restrictivecovenantsandliens

• Publicinterestinproperty:modifiedbyrightsofother• Propertyhasbecomefragmentedinmodernworld(Videexample,CBp19-

20):o Jurisdiction,subjectmatter,durationoftime,culture,statutory.

§ Forexampletheownerofanestatecanleasetheestatetothetenantwhoacquirespossessionandenjoysthepropertyduringthecurrencyofthelease.Theremaybeamortgageregisteredovertheproperty,andthebankhasasecurityinterestovertheproperty.Ifunpaid,thebankcanselltheproperty.Neighbourcantraveloverthepropertyiftheownergrantsaneasement.Thefarmthereforehasmanyrelationshipsovertheproperty.

• Theownerandbank• Theownerandtenant• Theownerandtenant

§ Thiscanbeseenthroughthe‘bundleofrightsmetaphor’.• Propertyratherinvolvesacomplexbundleof

relationships• Rangeofpropertyinterestscanariseoversinglepiece

oflandbecauseeachisdistinctive• Differentformsofpropertyrelationshipsco-existwithoutconflictingwith

others.• Ifinterestsareinconflict,propertylawprovidesrulestoresolveconflict:

accordprioritytoaright.

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o Differentinterestsinlandcompetingwithoneanother,thenCLfallsbackonpriorityrulesinwhichoneisgivenmorepriorityovertheother.

Justificationofproperty

• Rewardslabour• Protectsprivacy• Promotessecurity• Personalandeconomicincentives• Promotespersonalliberty(CB35-36)

• Itshouldbenotedthat:

o Propertyremainsasocialcreation:notabsolute,sacrosanctandgovernmentmayinterferewithit

o Propertyhasledtomonopolisationofscarceresourceso Propertyrightsaresubjugatedbypublicinterestsconcerns

(environmentallawandresourcemanagement)

• “Withoutpropertytherewouldbe‘noplaceforindustry;becausethefruitthereofisuncertain:andconsequentlynoCultureonEarth,NoNavigation,oruseofthecommoditiesthatmaybeimportedbySea;nocommodiousBuildings,noInstrumentsofmoving,andremovingsuchthingsasrequiremuchforce;noKnowledgeofthefaceoftheEarth;noaccountofTime;noArts;noLetters’”

(ThomasHobbs)• Othertheoriestojustifyproperty(CB1.15-1.20)

SourcesofPropertylaw

• PropertylawdoctrineintroducedwhenBritishCrownclaimedsovereigntyoverAustraliaalittlemorethan200yearsago

• Sources:o ImportedEnglishcommonlaw(judge-madelawandstatute)o Equityo Enactmentsoflocallegislatureandcourtdecisionso Nativetitle(ongoingindigenousconnectiontoland)wasrecognisedin

theMabodecisionasarightrecognisedbythecommonlawbutnot‘of’thecommonlaw(newformofpropertyright–suigenerisformofinterestinrelationtoland-andanewsourceofPropertylaw).

o Internationalhumanrightslawhavingabearingonproperty.• Ex,Article1oftheFirstProtocolofEuropeanConventionon

HumanRightsimpactsonEnglishlaw:§ Providesaguaranteeofpropertyrights§ Stateconditionsfordeprivation–publicinterest+

compensation§ Allowscontroloftheuseofpropertyinthegeneral

interestbytheStates

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Topic 1.2: New Forms of Property

Ø NewformsofpropertyØ VirtualpropertyØ Resourcesincapableofownership

Newformsofproperty• Propertyisadynamicconcept• Notionofpropertymaychangetomeetsocialdemands• Newsourcesarebeing‘privatised’• Parliamentcancreatenewformsofproperty• Increationofnewpropertybyacourt,thecourtmustbepreparedto

identifythesubjectofproperty,objectofpropertyandentitlementsthatattachtoproperty

• Ifnewformsofpropertyarecreated:o Itmustbeidentifiable;o itsscopeandformmustbeascertainable;o itmustnotimpingeuponacceptedmoralboundaries;o therehastobeasociallyandeconomicallyimperativeforthecreation

ofnewproperty

Virtualproperty• Incyberspaceindividualscanobtainvariouskindsofvestedinterests:

o domainnames,o webpages,o websites,o onlinedatabases,ando treasuresandcreditsinternetgames

• Valuable• Intangible,thoughvirtualpropertyisareality• Lawchallengedtobringnewkindofresourcesintotheoreticalrangeof

propertylaw(“propertised”)• Difficulty:

o Transcendsnationalboundarieso Thustheboundariesof‘property’shouldbeextendedtoinclude

virtualproperty

Resourcesoutsideofprivateownership• Romansdistinguishedbetweenthingscapableofprivateownershipand

thingsnotcapableofprivateownership(resintracommerciumandresextracommercium):

• Thingsoutsideofcommerce:o Commonthings(rescommunes)commontoallnotcapableof

appropriationbyany:• Air,runningwaterandsea

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o Publicthings(respublicae):propertyofstatebutintendedforpublicuse:

• Roads,riversandharbourso Religiousthings(resdiviniiuris)o Thingsnotbelongingtoanowneratagivenmomentintime(res

nullius)§ Wildgame§ Capableofappropriationbutnotpropertiedyet

Naturalresources• BractonwasinfluencedbyRomanlaw:notallresourcesavailableare

amendabletoprivateownershipo Publicpossessrightstonaturalresources(beaches,sea,parks,airand

runningwater(rescommunes)(uncontrollable);o Publictrustovernaturalresources;o Immunefrom‘privatisation’;

• PublicpossessinviolablerightstonaturalresourcesNotregardedaspropertybecauseof:

• Absenceofexcludabilityo AnimportantfeatureinEnglishlaw

• Hardins’“Tragedyofthecommons”?https://www.youtube.com/watch?v=4RE9PMwwaFc

o Overuseshowserosiono Ifsomethingisopentoeveryoneandpersonsactintheirowninterest

,thenaturalresourceisoveruse.Thusthisleadtodevelopmentofenvironmentallawtoprotectthenaturalresources

o Somenaturalresourcesareincapableofprivateappropriationduetomoralandsocialprinciples

o PrincipleinEnglishlawthattheStateisacarer/trusteeofnaturalresources

• Statutorycontrolovernaturalresources• Basisforenvironmentallaw• Someresourcesarethusoutsidetheboundariesofprivateownership

pursuanttomoralandsocialprinciples

(a)Resourcesincapableofownership(a)Righttoaspectacle(VictoriaParkRacingvTaylor)

Atissuewaswhetherthereispropertyinaspectacle.Casewasbasedon‘nuisance’becausebroadcastallegedlyamountedtounlawfulinterferencewithuseandenjoymentofracecourse.

LathamCJ• Ownerentitledtolookoverfenceofneighbour

o Cannotgetaninjunctiontostopsomeonelookingoverafence

• Neighbourcanpreventthisbyerectingfence

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• Canputupfencesandstructurestopreventpeoplefromattendingwithoutpayment

• Lawcannotbyinjunctionerectafencewhichownerisnotpreparedtoerect

• Canplacenoticeboardswherenotvisibletopeopleonoutside• Doesnotharmtheownerbydescribingwhattakesplaceon

anotherowner’sland• Expenditureofmoneyincreatingspectacledoesnotcreate

quasi-property• Noprecisemeaninginphrase‘propertyinaspectacle’• Spectaclecannotbeownedintheordinarysenseoftheword

–onlypropertyinmetaphoricalsenseinabsenceoflegalprinciple

o CantreallydefineaspectacleaspropertyRichJ(dealtwithnuisance)

• CamewithinapplicationofnuisanceDixonJ

• UnlikeintheUSA,thereisnoquasi-property(broadcastingrights)ifanindividualhasexpendedeffortandincurredexpensesincreatingsomethingofvalue

o IsaformofpropertybutnotthepositioninAustralia• Doesnotassumetheexclusivenessofpropertybecauseof

effortsofsomeonetoobtainvalueo Merefactthatyou’vespentmoneytostataracetrack

doesn’tgiveyoutherighttoexcludeothers• Therighttoexcludedefendantsfrombroadcastinga

descriptionoftheoccurrencetheycanseeontheplaintiff’slandisnotgivenbylaw

o Ifyouaretheownerofaracetrackandyouhaveracesontheland,youdon’thavetherighttoexcludeothersfrompassingbyandlookingin

o Thusnotaformofproperty• Notaninterestprotectedbylaworequity

EvattJ(dissenting)• Endresult:therighttoaspectacle/viewisnotcapableof

beingpropertized.o Ratiodecidendi:itisnotdefinable.o Notangiblepresence.o Parametersofthespectacleareunclear.o Exclusivenessofpropertyisabsent–bycreatinga

spectacleonyourproperty,youcannotexcludepasser-bypeoplefromlookingatit.IfthiswasgrantedinCourt,itwouldinterferewiththenormalpropertyrightsofownersofproperty.

• Nogeneralrightofprivacyandnounrestrictedrighttospyuponneighbour

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• Apersonwhousesdevicesforthepurposesofenablingthegeneralpublictooverlook/spycanbeliableinnuisanceifappreciabledamage,discomfortorannoyanceiscausedtoneighbour

• Surroundingcircumstancesneedtobeexamined• Answerliesinprivatenuisance

Held:• Spectacle/viewnotcapableofbeingowned

o Howevernewspaperscanobtainrightstodocumentacelebritywedding/spectacle.

o Butinnormalcourseofevents,youareabletolookacrosstoyourneighboursproperty.

• Ratio:o Notangiblepresenceo Parameters/boundariesofaspectacleareunclearo Absenceofexclusivenessofproperty

• Toallowrighttoexcludethewholeworldfromspectacleorviewmayimpederightsofneighbouringowners

• Otherrightsareusedtocontrolaccesstoaspectacle

(b)Resourcesincapableofownership

(b)Moralboundaries:• Ownershipofhumanlifeimpossible• Individual“owner”ofownbodyparts• Humancorpseintendedforburial/cremationnottreatedasproperty;

executorhascustodytodealwithbodyaccordingtolaw• Regenerativeparts(blood)maybetransferredinownershiptothirdparty

whocanclaimownership• Non-regenerativeparts(vitalorgan)nottransferableunlessdonated

during/afterdeath• Regulationsregardingdonordonations

• Humanpartsortissuemaybeneededformedicalresearch(CB62)

MoorevRegentsofUniversityCalifornia

• Issue:canhumantissuesthatwereremovedfrompatientandusedformedicalresearchbereclaimedinownershipbypatient(fromownerofpatentedcell-line)?

• Mooreclaimedheownedcellsandunauthorisedusethereofgavehimrighttosueforconversion

• Courtfoundthiswasnotthecase,whenthecellsweerremovedfromhimthenMooredidnothaveaninterestinthecells.

o Somethingnewwascreatedfromtheexcisedcells.• Heldthatownershipofcellswasnotestablished:

o Didnotretainasufficientinterestinexcisedcells;

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o Californialegislationlimitscontroloverexcisedcells;o CelllineandproductsderivedfromitcannotbeMoore’sproperty

becauseitisfactuallyandlegallydistinctfromoriginalcells• Heldthatexcisedcellsarenotlikechattelstosupportactionforconversion:

o Policyconsiderationnottoextendtortofconversion;o Tortofconversionisnotnecessarytoprotectpatient’sinterest;o Problemsinthisareashouldberesolvedbylegislation.

• UniChadpropertyrightsovercell-line(patents)MoorevRegentsUniCaliforniaPolicyArguments

• Patientcannotclaimtissuesbackbecausesocietalpolicyargumentsfavouringmedicaltreatmentoutweightheimportanceofindividualproprietaryconsiderations.

o Medicalresearchismoreimportantthanpersonalinterestincells (Efficiencyargumentprevailed)

• Extensionofpersonalpropertyrightstointerferewithmedicalresearchwouldbesociallyunacceptableandunjustified

• Individualrightsareprotectedbydoctrineoffiduciarydutyandinformedconsent

o Informedastowhichproceduresaretohappenandyoumustconsent,whichdidn’thappenhere.Onthisbasisthepatientwouldbesuccessful.

• BroussardJ(dissenting):difficultywithmajority’sreasoningonconversion–ifcellisstolenbythiefinlaboratory,UniCwouldbeabletomaintainanactioninconversion(Dualissueofownershipofpropertyinbodyanditsproductsandunethicalnatureofpracticeofnon-disclosure)

• Note:causeofactionwasrecognisedforbreachoffiduciarydutyorfailuretoobtainconsent

HumanTissuesAct1982(Vic)

• OwnershipoverhumantissuedealtbyAuststatutes• Ss38-39prohibitbuyingandsellingofhumantissues:

“…apersonshallnotsell,oragreetoselltissue(includinghisowntissue)ortherighttotaketissuefromhisbody”(s38(1)).“..apersonshallnotbuy,agreetobuy,offertobuy,holdhimselfoutasbeingwillingtobuy,orinquirewhetherapersoniswillingtoselltothepersonoranotherperson-(a)tissue;or(b)therighttotaketissuefromthebodyofanotherperson”(s39(1)).

• Unlikelythatclaimforconversion(asattemptedinMoore)wouldsucceedorariseinAustralianjurisdiction.

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(c)Resourcesincapableofownership(c)Commonheritageofmankind

• Naturalresourcesofhighseaso Areaisopentoeverybody

• Outerspaceo Notionofcommonheritageofmankind

§ Oldromanideasthatyoucannotendorseprivateownershipthatwillleadtoconflict–referencetoUNOuterspacetreaty

o Endorsingprivateownershipwillleadtoconflicto UNOuterspacetreaty

• Spaceisprovinceofallmankind• Nosovereigntyclaimsbystates• Propertyrightscontrarytocommonheritage• Propertyrightshavebeenasserted

• MoonTreatyo Regulatingcontrolandownershipofmoono Divisionoflunarresourceso Rescommunesconcept

§ Belongstoeveryoneanditcannotbeappropriatedo (Strangely)Privateownershipnotexpresslyprohibited

§ Extra-terrestrialrealestate?§ Companysellingareasofthemoon?

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Topic 1.3: Contractual & Property Rights

Ø DistinctionbetweenpropertyrightsandcontractualrightsØ Classificationofproperty

PersonalRightàoperatesbetweenpartiesprivytotheCTPropertyRightàoperatesagainstthewholeworldContractualRights

• Inidentifyingaproperty,youlooktowardsthefeatures.Then,ifyoucallitapropertyrightthenyoucandistinguishitfromacontractualrightorpersonalright.

ContractualRight

• Contractualrightisonlyenforceableagainstotherpartytoacontract• CRentailstherighttohavethecontractperformed• Notarighttoathing

o Buttheobjectoftherighto E.g.bepaid

• Ingeneral,notenforceableagainstthirdparties

• Enforceablecontractentitlespartytosueintheeventofbreachofcontractbytheotherparty

• Rangeofpersonalremedies• Personalrightagainstotherpartytogetdamagesforbreachofobligation• Remedy:tomakegooddamage• Contractualrightmaybeinterpretedtobecomepropertyinterest(loancontract–

mortgage;purchasecontract-trust)PropertyRight

• Confersarightoverathingo Forexamplebankshavepropertyrightsoverahousewithamortgage.o Forexampleyoupayforaseatedticketatamatchandhavepropertyrighttositon

theseatnotownit.o WhatstartsoffasaCTcandevelopintoapropertyright.

• Enforceableagainstthethirdparties/restoftheworldo E.g.ifneighbourgrantsyouaneasementtotraveloverhisfarm,thenyoucan

traveloverhisfarm,enforceitoverotherneighboursandthirdparties.• Supportedbypropertyremediestoprecludeanybody(apartfrompersonwithbettertitle)

frominterferingwithpropertyrights• Mustfallundertherecognisedcategoriesofpropertyrights(numerousclausus,ora

propertyrightlimit)• Propertyrightsmayarisefromcontractcausinganoverlapbetweentwosystemsofrights• Contractwhichpurportstogiverightsoverthings,notnecessarilypropertyright:Cinema

ticket:rightofentry/access;propertyrightsarenotconferred• Note:righttoenforceacontractisresourcecapableofformingsubjectofproperty

relation:o Ownershipofcontractualright

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o Shares,insurancepoliciesandbankaccounts

DistinctionbetweenLeaseandLicence• Thedistinctionbetweenaleaseandalicencehighlightsthedistinctionbetweenproperty

andnon-property,andbetweenpropertyrightandcontractualright• Examples:

o Exampleone:§ Youleaseanapartmentfromalandlord.Hegivesyoukeysandaccessto

property.Heisentitledtoinspecttheproperty3timesayearbutapartfromthatyouhavecontrolandpossessionoftheproperty.

§ Leaseandpropertyright:becauselandlordconferredexclusivepossessionontoyou.Youthuscanexcludeanyonefromentering,eventhelandlordoncertaindays.Thisisforacontractualperiod.

o Exampletwo:§ Westfieldshoppingcentreownersallowspublictoentertheshopping

centrefreeofchargetoaccessit.§ Licence:becauseitispermissiontoenterorbeonthelandbutnotexclusive

possessionoveranypartofthebuilding.Gratuitouspermissionexistsbecauseyoupaynothingtoenter,anditmayberevokedatanytime.

o Examplethree:§ Youpaytowatchafootymatch.Theticketallowsyoutositonaspecified

seat.§ Contractual:permissiontooccupyduetoaCT.Permissiontoenterthe

premisesandtheseat,supportedbyacontractualarrangementinpayingforaticket.

o Examplefour:§ Youaretheownerofthefarm,owningwildberriesonthefarm.Yougrant

theneighbouronceayeartopickberriesonyourfarmandlinkittosomekindofagreement.

§ PropertyInterestlinkedwithLicence:tobeabletopickberries,youarealsoallowedtoenterontothelandandalsotakesomethingfromtheland.

o Thesearealldifferentpossibilities.Possibilities:

1. Lease:conferralofexclusivepossession,uponterms,foralimitedperiodoftime

2. Licence:permissiontodoanactonlicensor'slandwhichwouldotherwiseconstitutetrespass:

1. Merelicence:gratuitouspermissiontoenterland,revocableatwill,becausethelawdoesnotenforcepromiseswithoutconsideration.Notsupportedbyacontract.

2. Licencecoupledwithacontract:permissiontoentersupportedbycontractualarrangement

3. Licencecoupledwiththegrantofapropertyinterest:permissiontoenterlandinsupportofarecognisablepropertyinterestinland–forinstancearighttoremovegravelfromanother’sland(profitàprendre)

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LeaseandLicence

Lease• Itisapropertyinteresteventhoughhistoricallyitwasclassifiedasapersonalproperty.

o Itisapropertyright,alease.• Apropertyinterestiscreatedbyconferringpossession/enjoymentofland• Exclusivepossession=propertyinterest/right

o Canevenexcludelandlord.• Rightinrem

o EnforceableagainstanyoutsidersnotpartytotheCT• Classifiedhistoricallyaspersonalproperty(don’tconfusepersonalpropertywitha

personalright!)

Licence• Notapropertyinterest.• Permissiontodosomethingwhichwithoutpermissionwouldbeunlawful(accesslawful)• Creationofpersonalrighttouselandunderconditionswithownerretainingpossession• Nointerestpassestolicensee–notgivenexclusivepossession• Propertynotaltered• Contractuallicence(evenifirrevocable)notpropertyinterest

• Opportunitytowitnessaperformanceisnotaninterestinproperty/equitabletitle

Differentiation• Licenceispermissiontodosomethingthatwouldotherwisebeunlawful.Accessisgiven,

thusapersonalrightiscreatedbetweenguarantorandguarantee.Nopropertyinterestpassesànoexclusivepossession.Justacontractuallicencethatmaybeirrevocable.

• Leasegivesyouexclusivepossession.• Righttoexclusivepossessionisusedtodistinguishaleasefromalicence:

o exclusivepossession(lease);o absencethereof(licence)

CowellvRosehillRacecourseCoLtd(HK)• Suedfordamagesforassault-defencetrespassing–repliedirrevocablelicence.• Issues:

o Whetheruponpurchaseoftheticketdoesoneacquiresanirrevocablelicencetoremainthere;

o Ifonlycontractuallicence(damagelimitedtoadmittancefee)theCTcouldbebreached,claimdamagewhichisthefeeofadmittance;

o Ifproprietaryrightisgainedthroughbuyingtheticketthedamagerecoverableintortwouldbegreater

• WoodvLeadbitter:principlestatedthatamerelicenceisrevocable;licencecoupledwithapropertyinterest(example,easementsandprofitàprendre)isirrevocable.

o E.g.farmentryandpickberriesisirrevocable.

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DoctrineofWoodvLeadbitter:ifapropertyrightiscreatedandalicenceisgiventoenjoypropertyrightthegrantorcannotdivestgranteeofpropertyrightordeterminepropertyrightbybreakingagreement.Granteeownspropertyrighttowhichlicenceisanirrevocableincident

• HurstvPictureTheatres:righttoseeaspectacleisapropertyinterest(no).Interest(tosee

aspectacle)coupledwithlicenceisirrevocable.• CourtstatedthatthedecisioninHurstwaswronglydecidedbecauseitignoresthe

distinctionbetweencontractualandpropertyright(therefore,notfollowed)• TheCourtthenheldthatbuyingaticketforentertainmentcreatesapersonalrightinthe

buyeragainstthesellertohavethecontractperformed.o E.g.buyatickettowatchthecricket,youareexpectedtopayforitandcanexpect

theCTbeperformed.ButitisstillapersonalrightandCTbetweenyouandtheorganisers.

• Contractualrightsandobligationsarecreatedwhichareenforceableinpersonam• Breachofsuchcontract,remedyindamagesandnotproprietaryremediesDistinguishbetweenacontractconferringpossessionandenjoyment(lease)andcontractconferringrighttouselandunderconditionswithownerretainingpossession(licence)• Righttoseespectaclenotpropertyinterest:

o Notatangiblethingtobetakenfromlando Personaladvantage

• Analogy:wrongfuldismissalofemployeethatworksonpremiseorterminationofbuildingcontractwithbuildingcontractororrevokinglicenceofaudienceduetosafetyprovidesclaimfordamagesbutwouldnotentitlethemtoremainonpremise(becauseofsomeinterest).

o EvenifemploymentCTisterminated,evenwrongfully,youstilldon’thaveapropertyinteresttostayattheworkplace.

• Evenifagreedforconsiderationnottorevokelicence,suchlicencecanberevokedwherenopropertyinteresthasbeengranted.

o Organiserscanrevokepermissionandremoveyoufromthepremises,thismaybeabreachofCTifyouwereremovedbutinnocent,andcanclaimdamagesforfeeofticket.

• Suchrevocationconstitutesabreachofcontract:damagelimitedtoadmissionfee.Unabletorecoverdamageintort

• Uponrevocation(evenwrongfully)plaintiffbecomesatrespasserandremovalwithoutuseofundueforcedidnotconstituteassault.

Summary• Inidentifyingwhatapropertyrightis,wedistinguishitfromacontractualright,and

distinguishbetweenaleaseandalicense.• Barelicence–canberevokedatwilloflicensor,andforanyreasonwhatsoever(no

contractualrelationshipandnograntofapropertyinterest)o Ownerofsomethinglikeashoppingcentrecanrevokepermissionforyouto

bethere.YourbeingthereisnotlinkedtoaCTbutalicenceofpermissionthatcanbewithdrawnforanyreasonwithnoCTobligations.

• Licencecreatedbymeansofacontract–revocableatwilloflicensor,bysuchrevocationthelicensormaybecomeliableforbreachofcontract(contractualrelationshipbutnograntofapropertyinterest)

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o E.g.attendingacricketmatchandenteringintoaCT,stillrevokableandbreachedandtheattendeeshaveremediesforbreach.

• Licencecoupledwithgrantofpropertyinterest(profitàprendre–righttoremovenaturalproductfromland).Licensecannotberevoked

o Permissiongrantedtoremovethingsfromproperty,someonecannotgetridofyoubycancellingpermissiontobeontheland,becausethatpermissionislinkedtoapropertyinterest,andthatinterestisenforceableagainsttheowner.

Overview(CB35)

• Propertyright(inrem);contractualright(inpersonam)• Propertyconfersdifferentrights(righttoexclude)• Contractmaycommencefrominpersonamtopropertyrights(loan–mortgage)• Lease(exclusivepossession)• Licence(permissiontoenter)notlinkedtoaCTcanbewithdrawnwithnoconsequence• Licencecoupledwithcontract(e.g.payafee)doesnotbecomeproprietaryevenifthe

contractcontainsaprovisionmakingitirrevocable• Licenceisnotarecognisedpropertyinterestandcannotbeenforcedagainstthirdparties• Relationshipsmayconfercontractualandproprietaryinterests

ClassificationofProperty(SeeCB68)Afteridentifyingaproperty,youmustclassifyit…Classificationwithreferencetonatureofobject:

• Propertycanbedividedinto:o Realproperty(Land) (Immovables)o Chattelsreal(Leasesofland)o Personalproperty(Chattels)(goods) (Movables)

• Realpropertycanbesubdividedinto:

o Corporealforms:(tangible)• Land(andrightofpossession)• Territorialseaandsea-bed• Fixtures(addedtoland)• Nativetitle

o Incorporealforms(intangible)• Easements• Profitsàprendre(righttoremovethingsfromland)• Rentcharge• Mortgage(propertyrightofsecurity)

Classification• Typesofleaseholdinterests

o Fixed,periodic,tenancyatwillandtenancyatsufferance• Personalpropertycanbesubdividedin:

o Corporealforms• Chattels/goods(chosesinpossession)

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o IncorporealformsEnforceablelegalrights(chosesininaction):

§ Debts§ Shares§ Righttosueundercontract§ Copyright§ Insurancepolicies

Classificationwithreferencetojurisdiction:o Legalinterest(Commonlaw)o Equitableinterest(Equity)

Classificationaccordingtonature• Propertyisclassifiedinaccordancewiththenatureofsubjectmatter:

o Primaryclassificationisbetweenrealproperty(land)andpersonalproperty(chattels)

• Realproperty:propertyinterestoverland• Personalproperty:interestoverchattels/goods

o Land:physicalearthandanythingattachedtoitandtheairspaceaboveo Personalproperty:movableobjectswhichdonotconstitutelando Personalpropertyisaresidualcategoryo Sub-divisionwithineachcategoryisbetweentangible(corporeal)andintangible

(incorporeal)o Corporealpropertyexistsinaphysicalsense,whereasincorporealpropertydoes

notexistinaphysicalsensebutislegallyenforceable

Historicaldifferences• Differencesbetweenlandandchattels:

o Feudaltenureappliestolandonly:• LandissubjecttoultimateownershipbytheCrown• Personalpropertyisnot

o Availabilityofremedies:• Realpropertycanberecoveredbyrealactionifownerwaswrongfully

dispossessed;• Personalpropertyrestrictedtoapersonalmonetaryclaimbasedupontort

or/contract;• Possessorytitleofpersonalproperty

o Rulesofdescentdifferedupondeathofowner:• Landwenttotheheiratlaw(usuallytheeldestson)• Personalpropertywenttothenextofkin

Realproperty• Distinctionhastosomeextentbeensupersededduetoavailabilityoforderfor

repossessionofchattelsinthesamewayasforlando Caninstituteremedytoclaimpossessionofpersonalpropertysodistinctionisnot

importantanymore

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• Statutoryprovisionforrecoveryofchattels• Land(realty)subdividedintotwocategories:

o Corporealproperty(hereditaments)referstorightstoland(rightofoccupation)§ Canpossesstheland/goods,andremedytoclaimpossession

o Incorporealpropertyreferstorightsoverland:§ Cannotpossessorclaimpossession

• easements:rightswhichburdensonepieceoflandandbenefitsanother• profitàprende:righttotakesomethingoutofthesoiloftheland• rentcharge:aburdenonlandentitlingthegranteetocollectrentsfrom

land• mortgage:lendersinterestinlandwhichsecuresrepaymentofaloan

PersonalProperty• Tangiblepropertyconfersuponholdertherighttopossesstheobjectwhereasintangible

propertydoesnotconfertherighttopossess(objectisaright)– Soifitiscorporealproperty(landorgoods)thenyoucanhavepossessionofitand

youhavearemedytoclaimpossession.• Personalpropertycanbesubdividedinto:

– Chosesinpossession(tangiblepersonalproperty)– Chosesinaction(intangiblepersonalproperty)–enforceableright:

• Rightofclienttomoneyinbankaccount• Share• Lifeinsurancepolicy

- Chosesinactioncannotbepossessedphysicallyandcannotgiverisetopossessory

rights

• Chosesinactioncanbefurtherbrokendowninto:– pureintangibles(notrecognisedthroughadocument)– documentaryintangibles(recognisedthroughdocument–billoflading)

Leases• Propertyisalsoclassifiedintothirdcategory,namelychattelsreal(leases):

o Anenforceablecontractconferringexclusivepossessionforalimitedtimeagainstland

o Classifiedaspersonaltyforhistoricalreasonso Realactionsnotavailabletodispossessedtenanto Affordedonlypersonalrightsandactionfordamageso Writofejectmentallowedtenantsrecoveryofpossessionofleasedlando Remediesakintorealactionso Classifiedundertheblendedcategoryof‘chattelsreal’o LeaseholdinterestsareincludedwithinthedefinitionoflandundertheProperty

LawAct1958(Vic)• IntheearlydaysinEnlgishCL,ifyouhadaleaseyoudidnothavearealactioninthesense

youcouldreclaimthatpossession,despitelookinglikearealright.o Itlackedthefeatureofaremedy.

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• Overtime,itbecamepossibleforatenant,orowneroflandtoreclaimpossessionsothedistinctiondisappearedbutstillcouldnotclassifyitasRealProperty(orland),andnowregarditasanintermediatecategory.

• Now,aleaseholdinterestisregardedaslandSummary

• Propertyisarelationshipbetweenperson/object/otherpersonsandmaybemorethanonerelationshipexisting:YannavEaton.

• Inidentifyingwhatapropertyrightis,wedistinguishitfromacontractualright,anddistinguishbetweenaleaseandalicense.

• Barelicence–canberevokedatwilloflicensor,andforanyreasonwhatsoever(nocontractualrelationshipandnograntofapropertyinterest)

o Ownerofsomethinglikeashoppingcentrecanrevokepermissionforyoutobethere.YourbeingthereisnotlinkedtoaCTbutalicenceofpermissionthatcanbewithdrawnforanyreasonwithnoCTobligations.

• Licencecreatedbymeansofacontract–revocableatwilloflicensor,bysuchrevocationthelicensormaybecomeliableforbreachofcontract(contractualrelationshipbutnograntofapropertyinterest)

o E.g.attendingacricketmatchandenteringintoaCT,stillrevokableandbreachedandtheattendeeshaveremediesforbreach.

• Licencecoupledwithgrantofpropertyinterest(profitàprendre–righttoremovenaturalproductfromland).Licensecannotberevoked

o Permissiongrantedtoremovethingsfromproperty,someonecannotgetridofyoubycancellingpermissiontobeontheland,becausethatpermissionislinkedtoapropertyinterest,andthatinterestisenforceableagainsttheowner.

• ClassificationofPropertyàFixturesàPersonalProperty/PossessionàAdversePossession

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