PROPERTY
Wegner
Spring 2012
Concept of Property and why recognize property
· Theories about Property:
o Natural Law (really applied by gov’t, not inherit)
o Protect first possession
o Encourage labor
o Maximize societal happiness
o Ensure democracy
o Facilitate personal development
· How do you possess something and make it your property?
o What constitutes possession with wild animals, or ferae naturae?
§ Reasonable expectation of capture during pursuit is not enough; need to occupy physical possession over it (Pierson v. Post)
· Intangible property also exists
o Right to publicity, under common law
o Common law claim for “right of publicity” gives cause of action if (White v Samsung):
§ Use of P’s identity
§ “Appropriation” of “name or likeness” to D’s advantage, commercially or otherwise
§ Lack of consent
§ Resulting injury
What is property?
Right to transfer
§ Exceptions/Clarifications
o Native American lands and the US rule over them via concept of “discovery”; have right to use and exclude, but not to transfer (Johnson v. M’Intosh)
o Owning of body parts—if something completely new is invented through parts from something else, like a spleen, it is known as “accession” (Moore v CA Regents)
§ Rights of previous owner, then, do not give it a right over the accessioned property—ended once surgery started
§ Fiduciary duty was broken in Moore however, w/ lack of informed consent
Right to exclude
§ Punitive damages can be gained even when only nominal charges apply after someone goes over your land w/o owner’s permission, or after owner refuse (Jacque v. Steenberg Homes)
o relates to the rights of the individ owner and greater society, more than just the actual damage caused
§ Exceptions to the broad rule, however
o Ex: workers’ right to organize (State v. Shack)
§ No right on the part of the employer to isolate migrant workers and keep from accessing available aid set by law (note how issue is framed)
§ There was no invasion of state property/possessory right by farmer-employer; conduct was beyond reach of the trespass statue
Right to use
· Limitations: cannot make a “spite fence,” with malice and sole purpose to annoy neighbor (Sundowner and blocking the hotels)
· Can’t be a nuisance (Prah and his solar panels being blocked)
o Components of private nuisance:
§ Intentional
§ Nontrespassory
§ Unreasonable (most ambiguous)
ú Modern view: if “gravity of the harm outweighs the utility of the actor’s conduct”
§ Substantial interference…
§ w/ use and enjoyment
o Nuisance balancing
§ Gravity of harm to P
ú Extent of harm
ú Character of harm
ú Social value attached to the type of use of enjoyment invaded
ú Suitability of the particular use to the character of the locality
ú Burden on the person harmed of avoiding the harm
§ Usefulness of conduct to D/society
ú Social value of the conduct
ú Suitability of the conduct to the character of the locality
ú Impracticability of preventing or avoiding the harm
· Right to use and the environment: Endangered Species Act (Babbitt v. Sweet Oregon…)
o Broad regulatory powers under the ESA under the def’n that it applies, particularly under the word “harm”
o Despite economic harm, ESA prevails w/ interests of protecting species
Right to destroy
· If there is a greater public/economic good, and absent any legitimate intentions from a deceased testator, a will’s declaration of destroying a home in a prestigious neighborhood can be overruled (Eyerman v. Mercantile Trust)
· Right to destroy and the environment: Hazardous waste (Monsanto)
o Under RCRA and CERCLA, there are broader liabilities for corporations and other “covered persons” who deal with reckless waste disposers
o Can be joint and severally liable for an indivisible harm
Adverse Possession
Elements of adverse possession:
· Property owner loses rights because
o has not brought action to “eject” someone who has possessed property in a way that is…
§ actual
§ exclusive
§ open and notorious
§ adverse and hostile (no permission given is key; possibly frame of mind? Though mostly objective)
§ continuous for statutory period
o (Has to take into account the nature, location and character of the land)
· Adverse/hostile component and state of mind
o Can be taken in good faith, bad faith, or can be irrelevant
§ Good faith can make stronger case for some, such as with Church on other’s property knowing it wasn’t theirs (Fulkerson)
§ Most modern day say that it’s irrelevant (or at least bad/good faith doesn’t count one way or the other) and we should look at objective factors of actions, such as with a paper street along a supermarket (Tioga)
· 2 factors to consider in the AP elements:
o When the possessor actually begins use of land—what evidence is sufficient to indicate the beginning of this?
§ Gurwit meets the AP test (17-acre sparsely-used tract of land)
o Nature of the property
§ if it’s in a rural area v. a more urban environment, your claim of title may need to be more explicit.
ú Ex: going to property only in the summers may work as continuous occupation b/c of the nature of the land (Howard v Kunto)
§ Under NY statute, Van Valkenburgh’s gardening did not qualify (“usually improved and cultivated” part of statute)
· Generally, statutes provide for two scenarios
§ “under claim of right” (basic)
ú allows title to only that portion that has been cultivated/improved
§ “under color of title” (relying on a written instrument for a “virtual fence”)
ú allows them to have title to all landà”constructive possession”
· assumes other person not using part of the land
· always objective adverse/hostile standard
ú Problems with color of title
· Multiple lots: you only end up possessing that which are on
· Lappage: overlapped land goes to the one with the correct deed, unless you adversely possess
· Tacking
o Allows continuous use across multiple owners
o A property can be adversely possessed if the tacking switches owners in privity, even if the privity is under a mistake of fact.
o Reason
tfeasor
o Tortfeasor 1 v. Tortfeasor 2 (what if it was thought they both committed torts)
· Timeline issues
o first possessor generally protected, even if not owner
o later holder may not assert 3rd party rights
· Remedies
o Replevin: actual item returned
o Trover: money for the unlawful taking
· Competing “possession: F v. L
o trad’l rules:
§ mislaid= L; abandoned, lost, trove = F
§ BUT: labels often used as justification, not real reason
ú Such as deeming 18K as mislaid, and not abandoned in an aircraft which allows the Bank to recover the money over the company (Benjamin v. Lindner Aviation)
§ Other variables also play a role:
ú Location (shop floor v. upstairs room; below ground)
ú Employee? (generally agent of L/Employer, not F on own)
ú Trespasser? (usually loses)
· Statutes are also important
Bailments
· Temporary rightful possession on behalf of Owner
· Finder is a “bailee”—keep chattel safe and return to prior possessor on demand; not unqualified ownership; levels of negli vary on type of bailment
· Types of bailments:
o Mutually benefit the bailor and bailee
§ Exercise ordinary care, liable for ordinary negli
§ Ex: when A leaves clock at repair shop w/ B
o Primarily benefit bailor
§ Only slight care required; liable for gross negli
§ Ex: A tells friend B to watch car while on vacation
o Primarily benefit bailee
§ Must exercise extraordinary care; liable for slightest neglect
§ ex: using someone’s lawnmower
Adverse possession of chattels.
· Similar elements on AP to land
· S|L is shorter (maybe 2-5 yrs)
· What elements?
o Same as AP of property:
§ actual
§ exclusive
§ open and notorious
§ adverse and hostile
§ continuous for statutory period
o What diffs in application? (types of items? Tolling? “discovery” rule?)
o Can “toll” statute:
§ If you “conceal” chattel (affects open/notorious and continuous factors)
§ If you show due diligence via “discovery rule”
ú Tolls until you discover, or a reasonable person should’ve discovered
o What other factors are worth nothing? (Sale of goods?)
· Discovery rule to “toll” statute (alternative to just AP structure since it’s very hard to determine many elements):
o Test:
§ O used due diligence at time of theft?
§ O used effective method(s) to issue an alert?
§ Means to alert reasonable prudent purchaser of true owner?
ú O’Keefe does not qualify with her painting