Property I Outline

Subsequent Possession: Acquisition of Property by Find, Adverse Possession, and Gift

A. Background
i. Title- To have title is to have claim of ownership, often involves paper manifestation such as deed or will
ii. Possession, particularly with personal property, generally indicative of title, borders on presumption.
iii. Title allows for transfer via sale/gift, abandonment, exclusion of others (rights)
iv. Responsibilities-of care, cannot commit tort
v. Conversion- taking something one does not have claim to and using as if has that claim
vi. Trover- action for money damages resulting from D’s conversion to his own use of a chattel owned or possessed by the P. D’s sale of chattel creates constructive trust
vii. Replevin-return of actual item
viii. Ejectment-restoration of real property.
ix. Trespass-money damages for conversion of real property.
x. Bailment-possession of goods by one that is not the owner
1. Involuntary, e.g. one loses property and another finds
2. Voluntary bailment-putting in another’s care, etc.
3. Generally bailment creates duty of reasonable care, thus not identical rights to original ownership. Cannot destroy. If sell, creates constructive trust. Generally is not obligation to find rightful owner if involuntary
4. Voluntary bailment (i.e. The Winkfield), courts usually bar an action by the true owner against the present possessor if the bailee has recovered from the present possessor.
xi. Action to quiet title-claim asking court to declare ownership of property
B. Acquisition By Find
i. Lost or Mislaid Property
1. General rule- Title of the finder is good against the whole world but the true owner and prior finders. (Armory v. Delamirie-chimney sweep found jewels, brought to goldsmith)
a. Armory- prior possessor prevails over a subsequent possessor (applies in real and personal)
b. Reasoning for relativity of title
i. Otherwise would often destroy obligation of care of bailee to true owner
ii. Would likely encourage unlawful seizure once item is outside possession of true owner.
c. Anderson (illegally cut down logs which were subsequently stolen) – Prior possessors by way of wrongdoing have superior title to subsequent wrongdoer possessors
d. In more common case of disputes b/ wrongful prior possessor and honest subsequent, courts regularly find for subsequent.
2. Finder v. Landowner/Locus owner
a. Private home (Hannah v. Peel-soldier stationed in Peel’s home finds brooch, wins)
i. General rule-homeowner takes constructive possession of home, thus owns property w/in even if absent
ii. Locus owner thus generally first possessor even if not first owner, knowledge generally not necessary
iii. Hannah-Seemingly limited holding, since Peel never moved in, never took constructive possession of brooch, thus lost, P takes possession upon finding.
iv. South Staffordshire Water Co. (worker found rings in ground)-constructive possession of that which is attached to or under land/property, also possibly employer/employee and land owner/invitee
v. Rationale for embedded, reasonable expectation of owner
b. Public places (Bridges v. Hawkesworth-found bag of money in shop, finder awarded wins v. MacAvoy-shop owner wins purse)
i. General rule-lost property found in public place goes to finder
ii. General rule-Mislaid property found in public place goes to landowner
iii. Bridges-money never in possession or protection of landowner, no bailment created and no obligation. Thus, finder gets
iv. Bridges-case itself does not make public v. private distinction
v. MacAvoy-property voluntarily placed in shop, presumably creates obligation in shop owner, thus possession
vi. Rationale for rules, interest of true owner, likely to return to place where mislaid
vii. Problem w/ rationale, may retrace steps to places where could be lost
c. Occupier of land/licensee or invitee-occupier will almost always possess any lost or mislaid article regardless of knowledge
d. Employer/employee- If person finds thing as servant or agent of another, then finds it not for himself, but for that other. (SSWC). Not always case, law sprawls all over
e. Treasure trove
i. Traditionally, money, coin, etc. hidden in earth, if intention to return, went to king, if abandoned, went to finder.
ii. Modern-includes any hidden money, gold, silver, tendency is to treat as other found property, not lost but if mislaid, owner of place of find gets, if abandoned, finder gets
3. Mislaid-voluntarily placed, finder acquires no right
4. Lost-not voluntarily placed, finder generally entitled to possession against all but true owner. However, may not be true based on circumstances, including whether or not embedded in soil, public or private, etc.
5. Modern trend is to treat all property same, all covered by statute
ii. Abandoned Property
1. Voluntarily relinquished, finder generally entitled to keep
2. No concern of protecting true owners, but interests of owner of place of find remain, thus finder cannot always keep.
C. Acquisition by Adverse Possession
i. Background
1. Every American jurisdiction has one or more statutes of limitations that fix the period of time beyond which the owner of land can no longer bring an action, or undertake self-help, for the recovery of land from another person in possession
a. SOL-20 years used to be common, modern trend 6-10, can find 3-30
b. If record title transferred during period of SOL, does not reset SOL
c. To interrupt running of statute, if self-help is allowed, can make re-entry. If not, can bring action of ejectment (or possibly quiet title)
2. Adverse possession functions as a method of transferring interests in land without the consent of the prior owner, and even in spite of his dissent.
3. Rationale/Policies behind:
a. Promotes productive use of land by rewarding actual possessor and give permanence-Earning theory
b. Sleeping owner theory-owner that ignores land not deserving of title, encourages owner to tend to land
c. Stability theory-clear titles, proof of meritorious titles, and correction of errors