Select Page

Property I
University of Michigan School of Law
Krier, James E.

Property Outline
 
Property
(Ely, 53) a means of distributing and redistributing the wealth of a society
Utilitarian view of property predominant (Hume, Bentham)
o       Break from natural rights view (Locke)
§        All property in the US is owned by someone
·        Ownership and possession are relative terms
o       Have to judge claims against each other
§         Land was originally acquired by first possession
·        Land can’t be initially possessed anymore
o       Johnson v. M’Intosh – Native Americans were occupants, not possessors
o       Planets and satellites are governed by treaty.
o       Land can’t be abandoned
Private property
(Reich, 53) “nourishes individuality and healthy diversity”
(Friedman, 53) essential to political freedom
Is freely transferable.
o       Allows transfer of property according to value
Aren’t allowed to illegally interfere with private property
o       Allowed to compete as long as you don’t interfere in private property.
§        Competition “increases the welfare of mankind”
§        Interference inhibits trade and welfare of the nation
·        Ex. Keeble v. Hickeringill
§        Problem: There are 2 schools. Can the 2nd one lure students away from the 1st school by having better teachers?
·        Yes. It doesn’t matter which school was 1st. 
·        Could the 2nd school compete by shooting at the 1st school, thus scaring away the students?
o       No. Illegal interference in the performance of the 1st school. Luring is ok. Terrorizing isn’t.
Equality vs. Efficency
Equality claim: distributive justice
o       No orthodox definition of fairness
§        à Liberal tradition of fairness
·        Rules that are progressively distributed
o       Equal opportunity can work well on fairness grounds if the resources are abundant.
§        Diachronic equalization
·        Over time, do the negative effects even out?
Efficiency claim: maximizing resources
o       Courts are a way to manage resources.
§        Cases are used to avoid future cases on the same topic
·        Channels behavior in ways that are socially productive
·        Allows people to make more accurate predictions of consequences
o       Having property travel freely makes it more valuable
§         Property travels to the person who values it the most
o       When social norms change, courts change their instrumental ends.
§         Ex. When an animal becomes scarce
·        hunting à preserving
Different Modes of Judicial Reasoning
Formalism or Doctrinal Approach
o            Ex. Majority in Pierson v. Post
o            Finding the Rule that best determined social order  
o            Used to be the dominant mode of analysis
o            Judges liked to hide their formalist thinking
o            They “found” the law; they didn’t make it
o            Not determined by logic or consequentialism (find the end and determine the means to get there)
·             Instrumental or Functional Approach
o       What is the desired end and how can it be obtained?
o       Now the predominant mode of analysis
o       Judges are more aware of social consequences
o       Ex. Dissent in Pierson v. Post (Livingston)
·        Foxes should be killed to protect chickens
o       Goal: to put chickens on the table
Use of custom
§         Ex. Dissent in Pierson (hunting) and majority in Ghen (whaling)
§         Uses empirical guesses to determine socially desirable ends
§         Custom should only count when it takes into account the effects on all relevant 3rd parties
·        Be wary of cases decided by custom, unless it’s a custom that includes all affected parties
o       Industry’s first interest is industry
§         No good assumption that they would take into account the interests of people outside the industry
o       Customs rarely take into account future generations
§         Future generations usually get screwed in custom decisions
·        Ex. Ghen does whaling custom take into account future generations and whale lovers?
·        Problem: If cab driver using custom drives on sidewalk and 2 people are hurt (passenger and bystander) are the claims different?
o       Yes. Bystanders aren’t part of the custom
§         For bystanders, custom shouldn’t count
·        Passengers can withhold their participation from custom
o       Would the competing cab companies have the same practice?
§         Probably, because the costs and b

ing is determined by rule and can lead to overfishing
§ Ex. Why is hunting regulated?
·        To make sure the resources don’t get depleted.
o       Trespassing
§         Owners are best able to shepherd valuable resources on their land
§         Allowing trespassing would make owning too expensive
·Non-owners would try to trespass, owners would spend money to protect their land
o       Trespassing law acts as a general barrier
§ Law has some costs (enforcement and monitoring) but cheaper than individual enforcement
§ Non-owners can buy resources through the market, not by stealing them
§        Trespassing Problems
·        What if I park my Rolls-Royce in your garage, should the judge have to see who would pay the most to leave their car in the garage?
o       Need to enforce property rights (garage is inalienable)
§         Property rights changes value of products
·        Can get the garage to the Rolls-Royce owner on the market
o       Market transaction can be more accurate in determining value than judge
§         Transaction and assessment costs of court case are too high
·        T captures a wild animal from O’s land and confines it on T’s land. Then T1 captures the animal from T’s land. T sues T1 to get back the animal. T1 says that T had no rights of ownership over the animal because T had to trespass to get it. Who gets the animal, T or T1?
o       T because of the rule of first possession.
§         T is protected from T1
o       If O sues for possession of the animal from T, who gets it, O or T?
§         O. O had constructive possession first, so O is the original owner.
§         If O goes on T’s land and takes the animal back and T sues for the animal’s return, who would get it, O or T?
Sometimes T. Trespassing as trump card.