Property Outline – Dean King – Spring 2013
· Property requires that:
1. Something is scarce (this creates value)
2. Something can be legally exchanged.
· When analyzing a situation focus on who has what rights, not ownership
1. Courts seek to maximize social wealth.
2. Uphold custom and consistency.
3. Reward investment and labor.
· Courts use a continuum for determining where to fall.
CLEAR RULE FLEXIBLE RULE
(Produces certainty, (Rewards investment & labor,
reduces litigation, encourages fairness,
maximizes social wealth) discourages free-riders)
EXAMPLE: Capture Rule(Clear Rule) “Possession” vs. Pursuit Rule(Flexible Rule)
· Three(3) types of recovered property.
1. Mislaid – Intentionally placed & forgotten.
2. Abandoned – Owner no longer wants property
3. Lost – Owner involuntarily parts with property & doesn't know where it is.
Type
Finder's Rights
Social Policy/Social Wealth
Mislaid
Owner of property where found retains rights (locus in quo).
Return property to true owner.
Abandoned
Goes to the finder (capture doctrine, social utility)
Reward finders of property by maximizing social utility.
Lost
(via statute) Must try to find true owner, (Common Law) Goes to finder.
Per statute. Common Law is similar to abandoned.
* Property rights only determined between parties of the case, not the absolute true owner.
** On exams classify & define each type of lost property and then examine why each party would or wouldn't utilize a category.
· Agents must relinquish property to their masters.
Exam Examples
(A) is a farmer who has harvested corn. (A) leaves the property on public land for a buyer. (B) finds the corn and takes it away. (C ) then takes the corn from (B). (B) sues (C ), (C ) says (B) has no right because it's (A)'s corn.
Answer- (B) wins because (A) is not a party to the suit. (B) is the true owner amongst the parties present. The court doesn't want to reward theft so it seeks who has the GREATER right amongst parties present, not absolute rights.
Common Law Right of Publicity
1. Δ uses Π's identity
2. Use of name or likeness
3. Lack of consent
4. Resulting injury
· Idea Expression Dichotomy
◦ Ideas are publicly free
◦ Expressions are protected.
EX: Detective novel vs. Sherlock Holmes
· Scientific theories aren't protected
◦ No copyright of Relativity
◦ Surgical Procedures
· Having value does NOT create an ipso facto property right.
◦ Can also have property without value as well.
▪ EXAMPLE: Abandoned building where taxes owed exceed value of property
· Difference in property rights when selling versus not sharing. AP has a right to not have its work product copied by INS but cannot pursue people who are reporting the news.
ESTATES & LAND
· Cannot gift things for after your death unless they're in your will.
· Three(3) criteria for Inter Vivos gift
◦ Intent
◦ Delivery (evidence of intent)
◦ Acceptance
*Inter Vivos = gift made while alive
· Life Estate = Possession for life
· Remainder Interest (Right of next possession)
◦ Interest in property after a previous interest expires (title, possession)
▪ Allows you to insure or protect this item while in possession of another.
· Value of property is its ability to be transferred (inalienability).
· UCC 2-403 Owner losses title to a buyer, if the owner → entrusts to Merchant → Sells to Buyer in good-faith.
◦ Encourages buying and selling in the market.
◦ Statutory Equitable Estoppel – Merchant in ordinary business & Buyer in good-faith who buys from merchant.
◦ Common Law Equitable Estoppel – Mere intermediary who doesn't deal with goods of that kind.
Adverse Possession
· Allows possessor to obtain superior title over true owner after a statute of limitations.
· S
tractor to build deck next to A's lot. B doesn't know contractor built deck one foot into A's lot. B uses deck until 2000 when lot sold to C. That same year A conveyed property to D. C has used the deck, earlier this year (2012) D surveys and asks C to remove encroachment. It would cost $5,000 and C refused. Statue of limitations is 20 years. D sues C.
◦ Issues – 5 steps of Adverse Possession
▪ Connecticut Doctrine(No mental element, T/O doesn't have to know)
▪ Maine Doctrine(Mental element necessary, T/O must know)
▪ Statute of Limitations & Privity(transfer by consent)
▪ Maine and Iowa Doctrines (subjective) may encourage perjury
▪ Color of Title(Defective title to land that is not actually owned)
▪ Constructive Adverse Possession
Adverse Possession of Chattels
· Need to actively seek personal property once it is gone.
◦ Three(3) year statue of limitations goes into affect when stolen.
◦ Reasonable diligence requirement.
▪ Causes of action cannot be delayed.
· Innocent true owner v. bonafide purchaser
◦ Purchaser can win under 2-403 only if true owner entrusts goods to a merchant who deals in goods of that kind.
▪ Otherwise true owner wins.
· Laches Defense
◦ Affirmative defense in equity, not law, regarding delay(flexible rule)
· Demand and Refusal Rule
◦ Clear rule that also favors true owner.
· Seisin – Possession of land with obligation
◦ Services
◦ Incidents (Homage, relief, wardship, marriage)
· Relief is essentially an estate tax/inheritance tax
· 1290 Quia Emptores
◦ Ability to sub-infudate abolished. Obligations still owed for transferring title but no further need to seek permission. (Creates free alienability)
