II. SUBSEQUENT IN TIME: ACQUISITION OF PROPERTY BY FIND, ADVERSE POSSESSION & GIFT (125-69, 175-89) Flashcards
color of title
refers to claim founded on written instrument (i.e. deed, will, judicial decree) which is invalid unbeknownst to the possessor. In this case, the grantee without knowledge of the defect takes possession under color of title. In most states, color of title is not required to be an adverse possessor (although it is sufficient to satisfy this element)
What does a finder of property acquire (CL)?
A finder of property acquires (i) no rights in mislaid property, (ii) is entitled to possession of lost property against everyone except the true owner, and (iii) is entitled to keep abandoned property
Lost
accidentally parted with and doesn’t know where to find; F entitled to possession against all world except true O (if F is trespasser, employee, guest, etc owner of property gets possessory rights)
ex. O does not notice his watch has slipped off his wrist and landed on street
Mislaid
intentionally placed; owner of premises entitled to possession against the world except true O (bc O might return trying to find it)
ex. O lays watch on sink in hotel rm and forgets to pick it up
Abandoned
O intentionally relinquished ownership; F obtains possession and title if he has control over the property with intent to assert ownership
ex. O throws his old watch into a garbage can bc a new battery for it would cost too much
Defense of Jus Tertii
Defense that neither the plaintiff nor the defendant is the true owner, but that the property belongs to a third party. In Armory, the court says this defense is not allowed because the court can only decide the relative rights of people before it; thus Delamirie must show that his relationship to the stone is stronger than Armory’s (do not have to show absolute right)
Armory v. Delamirie
Armory-Delamirie-Jewelry
Initial finder has superior right to everyone but true owner (but, if original finder loses item and B find it, original finder still has superior right)
Facts: Plaintiff, a chimney sweep, found a jewel and took it to the defendant’s shop. The jeweler took the stones and gave him back the socket without the stones.
Goal of Restitution Measure?
goal is get everyone back to zero (no unjust enrichment)
F recovers from J, O recovers from J, J recovers from F
Chain of Title: who can O sue?
O can sue anyone in the chain (law wants to protect O above all; if this were not the case and O could only sue current possessor, individuals could play keep away from O)
Subrogation
Where an insurance company pays you and thus buys your right to go after ∆ for damages (assume rights of the insured)
“Benefit of the Bargain” Rule
If X gifted the painting to Y, X can only recover the market value at the moment when X gave it away, not the present market value (because we don’t want X to get the benefit for selling hot goods)
claim of title v color of title
claim of title expresses the necessary adversity for adverse possession
color of title means claim is based on written instrument or judgment that is defective, it is sufficient but usually not necessary for adverse possession
grantor does not own the land deeded, grantor was mentally incompetent, deed was improperly executed - these are all examples of ______________
color of title where grantee w/o knowledge of the defect takes possession under color of title
Hannah v. Peel
Hannah loves brooches.
If owner of house has not moved into the house, owner is not in constructive possession of articles therein of which he is unaware; since Peel had never occupied the house, Hannah was entitled to the brooch
McAvoy v. Medina
MvM-Mislaid
When true owner never came back to claim it, P requested that D give him the money and D refused. Court held that the pocketbook was not lost but mislaid, and thus P (finder) had acquired no rights.
Quitclaim Deed
gives whatever interest you have
What must an adverse possessor file to have title and name as owner recorded in the courthouse?
quiet title action
adverse possessors will not have recordable title; if they wish to have name as owner recorded in courthouse, they must file a quiet title action against the former owner (usually have to do this to sell to someone, since a person will be wary of buying land with no recordable title)
constructive possession
when law treats as if he is in possession although he is not or he is unaware of it
ex. landowner is in constructive possession of the objects located under the surface of her land
If the finder is a trespasser who prevails?
Owner of premises where object is found always prevails over trespassing finder