Full Property Law Casebook Outline 2021 PDF

Preview

Summary

Full Outline with notes from case law, lectures, and casebook readings. Main topics discussed and cases briefed....

Description

Property Outline

Property Law – Prof. Ahmad – Spring 2021 Possession Part I – Law of Personal Property 1. The Rule of Capture -

Knowing if land is owned is important “Ratione soli”- in relation to land/territory Landowner has constructive possession of wild animals while they are on that landowner’s property. Action of trespass- common law, universal Rule of Capture gives ownership of a previously unowned resource to the first person to gain possession of that resource. Rules of Capture for Wild Animals: o 1. Person owns wild animal once it has been taken into

Pierson v. Post Issue: Whether Post acquired property right in fox by pursuit of his hounds? -

Personal Property Causes of Action o Conversion/Trover o Replevin o Trespass to Chattels

2. Bailments - Is rightful possession of goods by one who is not the true owner o Bailor- owner o Bailee- nonowner is rightful possession o ex. Dry cleaners: you own suit (bailor) and leave clothes at cleaners (bailee) - Two kinds of legal issues typically raised: o 1. Whether bailment was formed  Possession = Intent + Control  Custody is when there is no intent to relinquish ownership  Ex. Jeweler showing you jewelry  Constructive control (ownership of car/home, having keys) o 2. Loss, destruction, or damage of bailed property  3 Common Law Classifications of Bailment (complicated/criticized)  1. Bailment solely for the benefit of the Bailor o Bailee is liable for only gross negligence and is expected to exercise only slight care over the bailed good.  2. Mutual benefit bailments  3. Bailment solely for the benefit of the bailee o Bailee is liable for even slight negligence and is expected to exercise great care over the bailed good.  Tort of Conversion - if bailee refuses or fails to deliver goods 1

Property Outline   

Bailee is strictly liable Misdelivery - Failure to return the good or delivered to the wrong person constitutes misdelivery of the good. Relativity of title - idea that a person could have superior/inferior rights in object as compared to one person

Pete v. Roth Hotel Co. (pg. 14) Issue: Was there a bailment and if so, what is the appropriate standard of care? 3. Finding - True Owner vs. Finder vs. Subsequent Possessor (ex. finder takes to jeweler to appraise) - “trover” – common law action to recover the value of personal property that has been wrongfully disposed of by another person. - Two Simple Finding Rules: o 1. True Owner always wins o 2. Finder wins against everyone except true owner Armory v. Delamire (pg.22) -

2

*Four categories of Found Property*: o 1. Abandoned property  the owner no longer wants to possess it,  shown by proof that the owner intends to abandon the property and has voluntarily relinquished all right, title and interest in the property.  Finder prevails against all others, including former owner o 2. Lost property  Property is lost and the owner unintentionally and involuntarily parts with its possession and does not know where it is.  Stolen property found by someone who did not participate in the theft as lost property.  Lost property becomes the property of the finder once the statutory procedures are followed and the owner makes no claim within 12 months. o 3. Mislaid property  Owner voluntarily puts property in a certain place who then overlooks or forgets where the property is.  Finder of mislaid property acquires no right to the property.  The right of possession of mislaid property belongs to the owner of the premises upon which the property is found, against all persons, other than the true owner. o 4. Treasure Trove  Consist of coins or currency concealed by the owner, it includes an element of antiquity.  Property must have been hidden or concealed for such a length of time that the owner is probably dead or undiscoverable.  Property belongs to the Finder as against all but the true owner.

Property Outline

o

5. Contraband  Define by statute as property used in certain crimes, or the proceeds gained from crimes.  Usually subject to seizure by the state.  If state cannot prove property is contraband, ownership of the property will turn on the finding rules above.

Benjamin v. Lindner Aviation, INC (pg. 24) Popov v. Hayashi (pg. 44) -

Conversion: o wrongful exercise of dominion over the personal property of another. o Must be actual interference with PL’s dominion o Wrongful withholding of property can constitute actual interference even where def. lawfully acquired property. o If person demands its return, unjustified refusal to give back is conversion. o Must be intentional; Def. need not know if property belongs to another

Possession Part II – Possession of Real Property Acquisition of Discovery - Little if any application to modern law - What is J. Marshall saying? - First possession = ownership of unowned things - Property is the relationship among people as to things enforced by the State

Johnson v. M’Intosh - Possession is a conclusion Certainty Fairness Social welfare Inter Vivos Gift - The three elements required: o (1) a donative intent on the part of the donor; o (2) an actual or symbolic delivery of the subject matter of the gift; and ( o 3) an absolute and irrevocable surrender by the donor of ownership and dominion over the subject matter of the gift, at least to the extent practicable or possible, considering the nature of the thing to be given

3

Property Outline Adverse Possession - **Elements**: o Continuous possession  Uninterrupted  Pattern of occupation n  Sufficient time to discover  Abandonment  Interruption o Actual possession  Must actually possess the land to get title  Normal for true owner under circumstances  Constructive possession based on color of title o Notorious & Open (often combined in Court)  Doing it out in the open and not secretly taking possession  Occupation significant enough to put owner on notice  Open possession of an underground cave is not notorious o Exclusive  no other in occupation without permission  exclusive of owner of strangers  joint adverse possession OK o Hostile/Claim of Right  Without consent of the owner  State of Mind: o Objective view  Adverse possessor’s state of mind irrelevant o Good faith required  Adverse possessor honestly believe that they owned property  Honest mistake o Bad faith required  Adverse possessor knows that property is owned by another. Marengo Cave Co. v. Ross - Ross sued Marengo to quiet title in the portion of the cave beneath his land. - Marengo argued that it had acquired title to the entire cave by adverse possession. - 700 feet from the boundary between Ross's and Marengo’s land. - Big portion on Ross’s side - To let Marengo win with an adverse possession argument would not be fair because: o Cave was thought to exist entirely under Marengo’s land o Ross did not know and had no reason to suspect that the cave was underneath his land because the cave, by its very nature, is hidden

4

Property Outline

Mannillo v. Gorski - Chester Gorski, son, installed a set of steps leading to a side entrance of the home. T - These steps encroached by 15 inches upon the lot that Mannillo purchased later on. - New jersey law requires hostile intent - case is remanded to the trial court to determine whether Mannillo had actual knowledge of Gorski’s encroachment and, if not, whether the Manillos should be required to convey the property to Gorski and what consideration would be appropriate. - The Maine doctrine requires an adverse possessor to deliberately take the property in question, which rewards a person who takes property with premeditated hostility while penalizing someone who makes an honest mistake. - Jersey court overrules Maine doctrine and adopts Connecticut doctrine Howard v. Kunto - Housing Musical Chairs - Important for clarifying that an adverse possessor’s use of the property might be considered in light of typical use and the tacking rule. Typical Use: o Standard is—use of the property in the same way that a typical owner would use the property. Tacking Rule: o Allows combing adverse possession period of good-faith successors in interest. Disabilities and Adverse Possession o The owner was not disabled at the time the adverse possessor entered, and the owner will not get the benefit of the disabilities period. o General Common Law Rule:  If person brings action, at time the cause thereof accrues,  If the owner is disabled when the adverse possessor enters, then owner gets benefit of the 10-year disabilities period.  If the owner becomes disabled later, then the owner will not get the benefit of the disabilities period.  Is within the age of minority, unsound mind, or imprisoned,  Such a person may bring such action either:  A. Within the ordinary 21-year period, or  B. Within 10 years after disability is removed. o Would be unfair to have the statute run against the owner while the owner is disabled.  Whichever is longer.  This language serves to the benefit of the disabled owner. **Adverse possession as a product of the statute of limitations** o If the limitations on the owner’s claim for trespass has expired, and the other elements have been met, the adverse possessor becomes the owner of the property by operation of law. 5

Property Outline The Fee Simple (Absolute) (of a life estate) - Unlimited and duration and closest thing that the US legal system has to absolute ownership of land. - Ownership forever - Not accompanied by future interest - Fee simple absolute = absolute ownership - How is it created: o Language is “to A [and his heirs]” o The phrase means “A” has a fee simple [absolute] Language of Conveyance - Issue- lineal descendants - Ancestors- parents, grandparents, and so on - Collaterals- blood relatives that are not ancestors (siblings, cousins, aunts, etc.) - Devisees- people who inherit from a person who dies testate - Testate- means with a will - Heirs- people who inherit from a person who dies intestate - Intestate- means without a will - Escheat- person’s property goes to the state if intestate and without heirs o Generally, this means that they die without a will and without a surviving spouse or surviving blood relatives. - Executor- person appointed to administer a deceased persons estate. Note: The suffix “-trix” is feminine, ex. Testatrix (Fem.) vs. testator (Male) -

-

-

-

6

Per stirpes: o distribution gives equal shares of one’s estate to each branch of the family. Per capita by generation: o distribution gives equal shares to each person at each generational level. The Life Estate: o Interest that has a duration measured by a human life o Created by the language “A for life” The Tenancies: o 3 basic types:  1. Term of years  2. The periodic tenancy  3. The tenancy at will Seisin vs. Freehold-Leasehold Distinction pg. 137

Property Outline

-

-

7

Four Important Property Statutes o 1. Statute Quia Emptores (1290):  made the fee simple absolute freely alienable. o 2. Statute of Uses (1536):  undercut the requirement of the ritual transfer of season to convey a freehold interest in property.  Permitted executory interest o 3. Statute of Wills (1540):  Allow the transfer of real property by will  Created rules for the transfer of property at death  Courts are often hostile to attempt to avoid the requirements of the Statute of Wills. o Statue of Frauds (1677):  Intended to prevent fraud by requiring certain types of agreements and transactions to be made in writing  Documents that actually transfer title must be in writing  Contracts for the sale of real property must be in writing, or at least evidence by a written memorandum that satisfies the statute. The Fee Tail (largely extinct) o Intended to keep land in a particular family o The state was designed to pass to the grantee’s lineal descendants o generation after generation. o Vitale has been abolished in most US jurisdictions Defeasible interest o Interest that will terminate on the happening of an uncertain event o Fee Simple: Has all rights a person can have to land o 3 Types:  1. Fee simple determinable  An interest in land that can end automatically.  Created if the defeasible language is phrased in terms of duration  Ex. “so long as”… “until”… “while used”  Future interest that accompanies a fee simple determinable is called a possibility of reverter. o Only exist as the future interest that accompanies a determinable interest  Future interest = a possibility of reverter or an executory interest  2. Fee simple subject to condition subsequent  Not automatic, may be cut short at the transferors  Future Interest = right of entry  Condition subsequent: event that ends a party’s duty to perform  Created of the defeasible language is phrase in terms of condition  Ex. “but if”… “on the condition that”… “provided that”… “provided, however, that when”  3. The fee simple subject to executory limitation

Property Outline 

Created when the accompanying future interest is created and someone other than the original grantor.

Future Interests: - Grantor: o Possibility of reverter  Paired with fee simple determinable  Possibility of reverter exist when an estate will return to the grantor if a condition is violated. o Right of entry  Paired with fee simple subject to condition subsequent  Right of entry exist when an estate will return to the grantor if a condition is violated and the grantor has the choice to take back the estate. o Reversion  Default answer: any future interest created in the grantor that is not a possibility of reverter or a right of entry.  Grantors future interest that remains after he conveys an estate which is less than what he originally had.  The portion of the grantors interest that the grantor retains after transferring an interest that is of limited or potentially limited duration.  Can pair with life estate and term of years  Anytime the grantor fails to transfer all of her interest with certainty, the grantor will have a reversion.  If the grantor gives away all of her interest with certainty, then there will be no reversion. - Transferee (Grantee) o Remainder  Third party’s future interest that is capable of becoming possessory at the termination of the prior state  Leftovers or remains after original possessor is done with it  Two Types:  1. Vested Remainder: o Held by an ascertained person; and o Not subject to a condition precedent  Means that there is nothing in the way from preventing the remainder from being possessed. o 3 kinds of vested remainders:  1. Indefeasibly  Certain to become possessory in the future and cannot be divested.  “to A for life, then to B”  2. Subject to partial divestment (open)  at least one member is ascertained and satisfied  Ex. Children/grandchildren  “To A for life, then to B’s children” 8

Property Outline

3. Subject to divestment  Has a condition subsequent  May be divested by an executory interest before becomes possessory.  “To A for life, then to B, but if B dies before A, then to C”  No packaging, wall at back end (comma) 2. Contingent remainder o Held by an unascertained person; or o If it is subject to a condition precedent  “To A for life, then to B if B does not die before A, otherwise to C”  Packaging (no comma) of conditional language  Front and/or back  Gap Period 3. Executory interest o A future interest in a transferee/grantee that can take affect only by divesting (or cutting short) another interest o If an interest created in a grantee is not a remainder, by definition it is an executory interest. o Springing Executory: divest the grantor o Shifting Executory: divest the grantee o Pairs with a fee simple subject to executory limitation 





-

9

Classification: o Process of using the understanding I was present and future interest to work in interpreting the interest created by conveyances of land. o Rules:  1. Classified interest comma by comma  Moving, helps with distinguishing between contingent remainders and executory interest.  2. If the first future interest in fee simple absolute is a vested remainder, then the next future interest in fee simple absolute will be an executory interest. If the first future interest in fee simple absolute is a contingent remainder, then the next future interest in fee simple absolute will be a contingent remainder.  3. O well have a reversion any time O does not give away her entire interest with certainty.  4. Classification of interest can change over time as circumstances change.  Most often occurs when: o Future interest becomes possessory o And interest transfers to another person o A class closes, or o A contingency resolves itself  TIP: Watch out for interest in unascertained person

Property Outline

White v. Brown - Ambiguous will - Wills that pass real property are presumed to convey a life estate unless the language expressed a clear intent to convey a fee simple. - Language in will was ambiguous - Restraint on alienation o A prohibition on selling real property o “not to be sold” language failed to overcome the presumption that will convey a fee simple to white. o The court said that the restraint was void because it violated the public policy favoring the free exchange of property. - Court concluded that will convey the house to wait in fee simple, but with no restraint on her ability to sell the house if she chose. - Reverse outcome of lower courts. White wins in end. - Dissenting: language to convey the house to White was evidence the Lide intended to convey only a life estate. - Rule: A will is presumed to convey the testators entire estate unless the world clearly states the contrary intent. Alienability: - Future interest can impair alienability of property o Problems with future interests increase when:  A. the number of future interest holders increases  B. some future interests are held in open classes  C. and some future interests are contingent - Trusts o Interest is a fiduciary relationship in which one party gives another party the right to hold title to property or assets for the benefit of a third-party. o Law and Equity  Product of English courts  Law Courts - concerned with strict application of legal rules  Equity Courts – more flexible and concerned with notions of fairness and justice.  The two have been merged in both England and majority of US Jurisdictions o Trust became possible because of law/equity division  Separated legal and equitable ownership o Trustee: legal owner of assets held in trusts o Beneficiaries: equitable owners of the assets o Equity superior to law  Beneficiaries’ interest is superior to trustee’s interest. o Settlor: person who creates a trust

10

Property Outline

Rules Favoring Alienability - Simply being able to transfer property - The Doctrine of Worthier Title o Originally applied to both transfers at death and transfers during life o Abolished in England in 1833 - The Rule in Shelley’s Case o Promote alienability by destroying contingent remainder created in a person’s heirs. o Abolished and most US jurisdictions. - Distractibility of Contingent Remainders o Aids alien ability by reducing the number of interest and illuminating the need to worry about the resolution of the contingency. o Widely abolished and appears to thrive only in Florida. -

11

**The Rule Against Perpetuities** o “No interest is good unless it must vest, if at all, not later than 21 years after some life and being at the creation of the interest.” o If there’s any possibility the interest like this after 21 years, it is void. o Rule applies only to:  Contingent remainders  Executory interest  All considered non-vested  Vested remainder in an open class  Must be treated as non-vested  Option and similar contracts o Rule does NOT apply to:  Future interest created in the grantor:  REVERSIONS  Possibilities the reverter ...