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Property I
University of North Carolina School of Law
Orth, John V.

 
PROPERTY OUTLINE – ORTH – SPRING 2014
 
GENERAL OVERVIEW
I.       In general property discusses three core relations. 1. The relationship between person to the property, the relationship of the property to other, and the relationship between the person to others.
A.    Real Property: Is the actual land, everything attached to land, and everything growing out land (dirt, trees, greens.) Important to remember that real property is also anything attached to the land. For example, when a house is built and attached to the ground, it becomes real property. It is immovable.
B.     Personal Property:  Real Property is everything else and is not attached to the land. It is movable.
C.     Possession: In general, possession does not equal ownership. In order to gain possession, one must:
1.      Acquire physical control over the object, and
2.      Have the intent to assume dominion over the item.
 
 
SELECTED TOPICS IN PERSONAL PROPERTY
FINDING
I.                   In general, the law of finders address how society distributes property rights when a person acquires possession of an item of personal property through finding. IE: It answers the question, is a finder a keeper and loser a weeper. The general idea to remember with finders, is that have right to possession that is greater to anyone except the true owner. The right of the finder is contingent upon whether the item is lost, mislaid, or abandoned.
II.                Law of Finders: “The finder or lost articles, even when they are found on the property, in the building, or when the finder effects a third person, is the owner thereof against all the world except the true owner. “ (Armory vs. Delamire, Chimney Sweep Boy)
a.       Control: Finding is more than just discovering an item. One must also exercise control over the item. IE: You must take the shiny object from the drain. (Eads).
b.      Claim
c.       Exceptions: If the finder is a trespasser, employee, guest, or licensee, or if property is found in a highly private locus or buried, owner of the locus gets the property.
d.      Exceptions: If item found buried in the soil, goes to owner of premises.
                                                              i.      Exception: Treasure  Trouve: Old law founded in Roman Empire days where folks buried money in the ground with the intent to get it upon return.  Historically, money went to the state. Now some courts give it to the finder, while others give it to the landowner.
III.             Duty: The only duty that a finder has is to return the true owner on demand. If the true owner has proof of claim, then the finder is obligated to return the item. Not performing the duty would be a tort.
a.       If finder knows who true owner is?
IV.             Differences Between Abadonned, Lost, and Mislaid
a.       Abandonment: If a person previously had possession, meaning that claimed the item, and then you voluntarily give up any claim of ownership, they abandon the property. In general, finders who find abandoned acquires title. However, this is general and can change. Example, if a trespasser finds an abandoned item, they are more than likely not going to get the title to the item. No true owner with abandoned property.
                                                              i.      Key Element: One must form the INTENT to give up his claim of ownership. If he doesn’t have the intent to give of his claim, then he still owns his property.
                                                            ii.      Finder obtains both possession and title if he exercises control over the property with the intent to assert ownership.
b.      Mislaid: Property that is intentionally placed somewhere, but is accidentally left behind. For example, someone leaves their purse on the table when getting their hair done. They intend to get it as they exit, but forget. The item is mislaid. Finder is this case/owner of the premises is entitled to possession against all the world except the true owner. Mislaid property has a true owner.
c.       Distinction between Abandonned Property and Mislaid is that mislaid property has a true owner. With abandoned property, there isn’t a true owner, and the finder is able to keep possession.
V.                Treasure Trouve: Idea developed after the fall of the Roman Empire. Soldiers would intentionally bury money with the intention of returning to retreieve. Law originally gave the money to the landowner, but then gave it to the finder. Only applies to money found in the earth or in private places. In England, the money belonged to the King.
VI.             Finding Cases
a.      Goddard v. Winchell (Meteorite Case): Meteorite fell into Goddard’s land. Hoagland dug it out and then sold it Winchell. Court decided that although Hoagland was the finder, the rock belonged to Winchell.  Main Idea:  Although Hoagland severed the property, the rock was still originally real property and apart of Goddard’s land and therefore was his rock.
b.      Eads v. Brazelton (Sunk Boat Case): Brazelton found the sunken ship, the America. He placed markers around and his boat over the wreck. He had to leave on business and Eads found the sunken ship later. Main Idea (Actual Control): Although Eads may have intended to return, the boat was not his, because he never actually possessed or took control of the ship. Orth’s lost object in sewer example.
c.       Armory v. Delamire (Chimney Sweep Boy Case): Young boy found the jewel and took to a jeweler who weighed the jewel holder and jewels. He took out  the jewels to weigh and refused to give them back after quoting a value. Main Idea: As the finder of the jewel, the young boy is entitled to the jewel against everyone except the true owner.  Doesn’t acquire ownership, but does acquire the right.
d.      Bridges v. Hawkesworth: Salesman enters defendant’s shop and notices a package full of bank notes upon exiting. He asks the salesman to hold it until the orig. owner returns. Comes back trois ans later and asks for it, and defendant says no. Main Idea: Salesman was the true finder, as he found the notes on public property and not on the defendant’s private prop or in his home.
e.       South Staffordshire Water Co. v. Sharman: An employee hired to clean out a pool found two rings at the bottom of the poll in the mud. Emp turned rings over to police, who them gave them back when the true owner was filed. Pool/land owner

e business or the state/city.
2.      Bailor is still responsible for delivering things undamaged.
3.      Movement: Bailment also does not have to be able to be moved in the absence of the bailor.
d.                  Intent(Control): Remember, a bailee must intend to take possession of the bailor property for a bailment to occur.   
a.      Understanding: There has to be an understanding of what is bailed. This means that a bailee is only responsible for what he intended to control.
b.      Value: A bailment still occurs if the bailee doesn’t know the value of an item and accepts control. IE: If A decided to hold a $100,000 watch for C thinking the watch was worth $100, a bailment would still occur.
e.                  Duty of Care: In general, a bailor must exercise reasonable care when agreement to a bailment. They also have a duty to redeliver the item at the end of the bailment.
a.      Duty of Care: The standard of care of a bailor is dependent of the degree of benefit that the baileereceives.
                                                              i.      Slight Benefit to Bailee/Sole Benefit of Bailor: Bailee has the duty of slight care. Example: Being uncompensated for holding a holding an object while a friend is on vacation.
                                                            ii.      Mutual Benefit: Normal care. Bailee can be held liable for negligence and is held to a standard of reasonable care under the circumstances.
                                                          iii.      Benefit of the Baliee: Bailee has a very high standard of care, and any neglect or damage renders bailor liable.
                                                          iv.      Insurer of Goods: It is also important to note that the bailee is not the insurer of goods. Thus, any damage that results at not fault of the bailee falls on the bailor. ßVerify
b.      Duty to Redeliver: Important to note that if a bailor doesn’t return an item they are held to strict liability. Bailors are presumed to be negligence upon not returning an item. (check)
                                                              i.      Exception( Cowan v. Pressprich): Bond case. Pressprich gave bond back to the wrong person (wrong bailee). Not held liable as it was consistent with the manner business. The Involuntary bailor was not liabe.
1.      Involuntary Bailor: Remember, IB’s must exercise reasonable care and effort to return an item that has been bailed.
2.      Negligence: IB’s are only negligent if they deliver to the wrong person.