PROPERTY LEWIS FALL 2013
PROPERTY LAW
· Relationship between A and B, or A and the government as it applies to property
· Efficient use – in the hands of people that value it most (pig chart)
o Maximizes value for everyone involved (sale at price that makes everyone better off)
Forms of ownership – 43
1. Private – right to exclude
a. Internalize external costs
b. Reduces transaction costs (can make decisions w/o consulting anyone else)
c. Plan for future
2. Communal – right can be exercised by all
a. Increases externalities
3. State – can exclude all others
a. Zoning
b. Eminent domain (taking for public use, pay FMV)
Rights
1. Use in an effective way to maximize value
2. Exclude others from using it
3. Alienate (transfer) to the person that values it most
Exceptions
· Sidewalks – cant stop people from using
· Kidney – can give away but not sell
Ways to acquire property
1. Original acquisition
2. Transfer
a. Adverse possession
b. Gift/given away
c. Sold in market transaction
ACQUISITION & CREATION
Acquisition by Capture – wild animals & fugitive resources – 33
· Abandoned property/lost/mislaid property
o First finder who later loses or mislays property has superior right over subsequent finder under rule of FTFR (first in time, first in right)
Pierson v. Post – 18
First-in-time (FTFR)
· Must be the 1st person to kill or mortally wound OR 1st to exercise dominion and control over the animal
· Pursuit is not enough
· Trespasser who kills on another person’s land forfeits title to landowner
Constructive Possession – when there is not actual possession
· Animal that crosses onto land à property of landowner
· Reduces incentive to trespass, don’t want to reward trespassors
Ex. – T captures wild animal on O’s land, carries it to her land and cages. A trespasses onto T’s land and takes animal.
o T vs. A à T (superior right)
o O vs. T à O (constructive possession)
Escape – lose rights when a wild animal is captured and then returns to natural state, unless they have definite ownership
Ex. – P imports 2 foxes,kept them caged. 1 got away, D killed and skinned it. Who gets the hide?
P vs. D à P (definite ownership; D should’ve known they weren’t native to the area)
Animis Revertende – when an animal migrates onto owner’s land on a regular basis, belongs to owner even if they wander off
Ex. – F established herd of deer that roam freely during the day and return at night. H shoots and takes.
o F vs. H à F (superior right)
Marked animals – title not lost if escapes and owner exercises all efforts to recapture
Rule of Increase – offspring belong to owner of the mother
Ghen v. Rich – 26
Custom
Keeble v. Hickeringill – 30
Business Practices
· Courts decisions encourage market growth
· Malicious interference with another’s trade/business is not allowed, but competition is OK
Fugitive Resources – wander from place to place (oil & gas) – 36
· Use first-in-time theory (FTFR)
Prior Appropriation – 38
o
property – usage by one person doesn’t exclude usage by others
Cheney Brothers v. Doris Silk Corp. – 61
Moore v. Regents of University of California – 70
Conversion – 74
· Must show that you have title to property or ownership
· Conversion law can’t be extended – want people to do research and not be afraid of being sued
Bundle of Rights – property is an abstraction
· Rights/relationships among people with respect to things
· Right to possess/use/exclude/transfer
Right to Exclude/Right to Include – 88
· Both are necessary and sufficient conditions of transferability
· Rights have no practical meaning unless protected by the state
· Private landowners should feel confident that wrongdoers who trespass will be punished
· Private or public necessity may justify entry upon the land of another
· A man’s right to his property is not absolute!
o People can still enter when necessary and not interfering with rights of possession
Jacque v. Steenberg Homes – 89
Damages
· Compensatory vs. punitive
· Sometimes we want to stick it to someone even if what they did didn’t cause that much damage to deter future conduct
· Protection of peoples’ rights – caused virtually no damage, but unless we stick to them with big punitive damages, they will keep doing it
