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Property I
WMU-Cooley Law School
Aiello, Frank C.

 
Property Aiello Fall 2015
 
 
I.       Personal Property
 
A.    Possession
1.      physical control and intent to exclude others
2.      or conclusion by a court that person is in possession, ought to be treated as possessor
3.      Distinguished from ownership – owner has “title,” usually proved by document signed by previous owner or 1st possessor transferring title to present owner.
4.      Constructive Possession – law treats person as possessor though he is not, or is unaware that he is.
B.     Wild Animals
1.      Possession – must deprive the animal of its natural liberty
a.       Corporeal possession
i. Capture must be virtually complete, slight possibility of escape allowed
ii. Must use reasonable precaution against escape
b.      Mortal wounding
i. Mere pursuit is not enough – Pierson v Post.
ii. Subject to trade custom – Ghen v Rich
2.      Forms of action for getting property back
a.       Trespass on case – indirect interference with property
b.      Trover – some one else has “found” your property, action for damages
c.       Trespass – direct interference with property
d.      Replevin – action for getting back what’s been taken
3.      Trespasser’s title – inferior to that of the owner of the land
4.      Interference by non-competitor – not allowed – “malicious interference is actionable,” Keeble v Hickeringill
5.      Escape
a.       Finder’s ownership is extinguished when wild animal escapes
b.      If animal is domestic or not native, then ownership is not extinguished
c.       If animal has marking, ownership is not extinguished
6.      Capture Rule for Natural Resources – rule varies depending on appropriate policy decisions
a.       Water – only a right to reasonable use (except if it’s a desert, then you have a prior appropriation rule to encourage water use)
b.      Solid Minerals – no capture rule, they belong to owner of the land
c.       Liquid and Gaseous Minerals – original rule was capture, let’s get this stuff out.  Now, there are limits as to how much each party can take (assuming some oil in one plot of land and some in the adjoining plot)
C.    Finder’s Rights
1.      finder has the right to keep the property against all but the rightful owner
a.       Armorie v Delamirie – finder hands jewel over to jeweler for appraisal, jeweler refuses to return.  Finder has action in trover or replevin.
b.      Relativity of title – if finder subsequently loses item, his title remains superior to the next finder.
2.      Unconscious Ownership
a.       A person may unconsciously possess an item if it is located on his property
b.      Applies to items underneath the surface, but often not to “loose” items on the surface.  Finders can often keep such items.  Hannah v Peel (but must have consent to be on the land)
c.       Finder is employee – some courts rule employee is “acting for” employer – doesn’t get to keep the item.
d.      Object found in private home – object goes to owner if he is in “possession” of home.
e.       Object found in public place
i. If lost, goes to finder – Bridges v Hawkesworth
ii. If “mislaid” goes to owner of the premises – McAvoy v Medina
D.    Bailments – the lawful possession of another’s property
1.      Bailee has duty to care for goods and deliver them to owner.
2.      Requirements
a.       Possession by bailor
b.      Delivery to bailee pursuant to contract or agreement
c.       Acceptance by bailee
3.      Creation
a.       Bailment is created when bailee assumes physical control with intent to possess
b.      Modern courts are liberal concerning “actual physical control”
c.       “intent” may be implied by actions
d.      bailee must be aware of the object, for bailment, but does not have to know its value – duty for bailee to ask.
4.      Constructive, or Involuntary Bailments (duty of care higher if labeled “constructive)
a.       No intent – bailment is thrust upon bailee
5.      Rights and duties of bailee
a.       Entitled to full damages based on wrongdoing by third party, but may be liable for same amount to bailor.
b.      Held to ordinary care – duty is placed on bailee to prove ordinary care was given
i. Higher standard if there is a benefit to the bailee
ii. If involuntary, may be no duty to take affirmative actions.
iii. Duty to Deliver – bailee is held to strict liability when it comes to redelivery
c.       Can contract for more/less bailee responsibility
E.     Gifts
1.      Definition:  voluntary transfers w/o any consideration.  Donor must 1) intend to make a gift, and 2) deliver the gift to the donee, who must 3) accept the gift.
a.       inter-vivos – a gift made during the donors life when the donor is not under any threat of impending death
i. once made, it is irrevocable.  If not, it violates the Statute of Wills.  Ways to get around this:
(a)     testamentary (make a will)
(b)     gifts causa mortis
(c)     make a present irrevocable grant of a future interest – Gruen v Gruen – retain for yourself a life interest, future interest doesn’t become possessory until you die.
(d)     Make a trotte

full.  Meanwhile, sells to BFP.  No estoppel, BFP should have checked.  Shearer v Gillete
v. Recording System – if you O fails to record, he is estopped against BFP
vi. Entrusting goods to merchants
(a)     At common law, some additional conduct was needed by the original owner for a BFP to evoke estoppel when sold goods by a merchant.
(b)     With UCC, good faith purchaser is protected
c.       Factor Acts
i. A factor is an agent in possession of goods with authority to sell them
ii. If there are limitations against BFP that he is not informed of, it doesn’t matter, rule in favor of BFP.
iii. Doctrine of Apparent Authority
(a)     Appearances are reality.
(b)     Duty falls on O for the appearance to reflect his rights
d.      Pre-existing Debt
i. Old rule:  if goods were meant in exchange for pre-existing debt, there was no estoppel – no change of position.
ii. Current UCC:  this does satisfy the change of position requirement – a horse is better than a law suit for damages.
 
II.    Adverse Possession of Real Property
 
A.    Doctrine:  obligates title holder of land to eject, within a statutorily described period, a wrongful possessor of land.  If owner fails to do so, his estate in land is terminated, and the adverse possessor receives a new title in estate.
1.      treats trespass as one continuous wrong
2.      very separate from normal statutes of limitation – it bars recovery for the current violation of the law.
B.     Requirements of Adverse Possession:  to establish title by adverse possession the squatter must show 1) an actual entry giving exclusive possession that is 2) open and notorious, 3) adverse & under claim of right, and 4) continuous for the statutory period.
1.      Adverse Possessors are ACE-HOles.  Actual, Continuous, Hostile, Open, and Notorious, with a claim of right.
2.      Actual entry giving exclusive possession
a.       Entry requirement – entry must trigger the cause of action
b.      Exclusive Possession – adverse possessor can’t be sharing property with owner or public