FIXTURES Flashcards
Geppetto leases commercial space from Jim N.E. Cricket. Just before the lease expires, Geppetto removes his woodworking bench, rotary saw, and other machinery that had been firmly attached to the walls and floors, with the help of his strange little boy, Pinocchio. Cricket sues Gepetto on the grounds that the items were fixtures and became part of the realty. What results, under the English rule?
Under the /English rule, the fact that they are used in trade means the items cannot be fixtures.
AMERICAN RULE: The American rule does not segregate “trade fixtures”, but looks to intent, apprpriateness and annexation as indicia of the article’s classification. Since the articles were light enough to move, their removal apparently would not damage Cricket’s interest; Gepetto was only a lessee; and the items were not unique to the leased space; it seems unlikely they’d be considered fixtures. (Note that, on the other hand, the items were firmly affixed to the walls and floor. This fact alone would probably not change the result.)
Jack and Jill lease Wllldry Acre from Gary Gutch. During the term of the lease they construct a water tower on the property. When the lease expires, can Jack and Jill dismantle the water tower and take it with them?
No. Since the tower fulfills the fixture requirements of annexation, appropriateness, and intention, it will most likely be considered a part of the realty. Furthermore, its removal would damage the landlord’s interest, so it cannot be removed. Even if Jack and Jill could remove the tower without damage to the land, articles must be removed from the premises (“severed”) before the end of the term, or they will be considered fixtures and become part of the realty.
NOTE: There is no agreement otherwise, which would change the result.
Midas rents a house from Scrooge, in which the masonry is defective. He repairs it himself; however, every brick he installs turns to gold when he touches it. Scrooge gives a mortgage on the property to Len Derr. Are the gold bricks subject to the mortgage?
Yes. because they are fixtures - they have lost their separate identity. As fixtures they are part of the realty, and, barring an agreement otherwise, a mortgage to realty includes fixtures.
Dorothy leases her house, Rubyslipper Place, from Auntie Em. She erects a fence on the property which is blown down during a tornado. Dorothy removes the fence for repairs. Does the fence lose its character as a fixture since it is not annexed to the realty?
No. Intention is more important than actual severance; since Dorothy’s intent isn’t to remove the fence permanently, the actual severance is not determinative.
What is a “fixture”?
A fixture is a chattel which has been annexed (attached) to land in such a way as to be regarded as real property. As such, it passes with ownership of the land (barring an agreement otherwise). Its requirements are:
- Annexation to realty (e.g., heating system installed = fixture). Note that if an item cannot be removed without damaging the property, it’s a fixture;
- Appropriate to the use of the realty to which it is connected (the more appropriate, the more likely it’s a fixture);
- Intent to make a permanent accession, viewed objectively. Look for any agreement, oral or written; also, annexor’s estate in land (owner is more likely to intend a permanent accession than a mere lessee).
MNEMONIC: ARIA (Annexed to Realty; Intended: Appropriate)
Under the modern (American) rule, what single factor tends to determine whether something is a fixture or not?
Annexor’s intention, viewed objectively. Factors like annexor’s estate in the land, and any agreement concerning the statuts of the object should be examined (a tenant is less likely to intent a permanent annexation than an owner; furthermore, an agreement, oral or written,concerning the status of the item will control). Howevr, an item incapable of removal without damaging the property (i.e., a heating system), is a fixture incapable of severance.
OLD ENGLISH DEFINITION: A fixture was anything attached to realty by screw, bolt, nail, or mortar, except chattels used in the annexor’s trade or business, which did not become fixtures regardless of their annexation.
When chattel becomes realty it is a “fixture”. Can a fixture become a chattel again?
Yes. This is known as “severance.” Severing may be achieved by physical removal from the property, sale, or agreement, as long as removal is possible without damaging the property.
Phideas rents the Parthenon from Lessorius. While there, he creates an enormous statue of the goddess Athena in the living room out of clay. When the lease approaches its end, Phideas realizes that he can’t remove the statute from the Parthenon without either destroying Athena or the building. Will Athena be considered a “fixture”?
Yes. Although the statue is not firmly affixed to the property, its size, weight, and the fact it can’t be remove without substantial damage suggests that it’s become a fixture.
Tommy Tiffany rents a house from Myra Glass. During his tenancy, he makes a briliantly-colored stained glass window which he installs in place of the unique, hexagonal picture window in the living room. He and Myra agree in writing that when his lease is up, he gets to take the window and replace it with the original one. when Tommy prepares to leave, Myra informs his that the window is a fixture and cannot be removed regardless of the agreement. Is she correct?
No. An express agreement controls in determining the classification of an item as a chattel or a fixture.
NOTE: In the absence of the agreement, the window probably would have been considered a fixture, since its removal would likely damage the property, it was firmly annexed to the property, it was custom-made for the house and thus unique to it, etc.Leonardo owns Sana Maria delle Grazie Villa. He paints as a hobby, an on one of the walls he paints “The Last Supper.” He deides to sell the Villa to Sam and Louise Medici. They sign a sales contract, and set a closing date two months hence. In the interim, Leonardo rents a truck and moves his possessions out. Then he begins to scrape “The Last Supper’ off the wall, inch by inch, nicking off bits of the wall in the process The Medici’s stop by one day, find him scraping away, and demand that he stop, claiming that the painting is a “fixture”, incapable of severance. Are they corrected?
Nevill Tenant leases land from Lem Lord, for one year. The land is unimproved and has a stream running through it. During his lease, Neville brings cinder blocks onto the land and constructs a miniature facsimile of the London Bridge over the stream. As the tenancy nears its end, he begins to dismantle it. Lord tries to stop him, claiming that the bridge is a part of the land and Neville cannot remove it. Is he right?
Only if Neville cannot remove the bridge without damaging the land. In landlord-tenant relations, as with other relationships, intent determines whether the item is a fixture. Physical removal of the item is the clearest indication tht it was not intended to be a fixture and pass with possession. Coupled with the fact that Nevill is only a lessee and hence unlikely to intend a permanent improvement to the property, it’s likely the Bridge was not intended to be a fixture.
NOTE: Neville must be able to remove the Bridge without damaging the property, or it will be considered a fixture incapable of severance
