*Involuntary Transfers: Between Private Parties

Question 1

Abandonment

• Columbus-America Discovery Group v. Atlantic Mutual Insurance Co. – 4th Cir. (1992)

Answer 1

o F: Shipwreck in 1857 w/ large amount gold found by P; after the shipwreck insurance cos such a D paid out large amounts to cover the loss of gold
 Subrogation right says that insurance co. takes possession of the gold at the bottom of the ocean; similar by maritime salvage law (original owner retains but salvor entitled to large salvage award)
 P claims that should own because it was abandoned by insurance cos
o H: Rev’d for D – losing something is not the same as abandoning it;
 Abandonment requires intentional act
 Files were lost over the 100 yrs, but were not intentionally destroyed
 Note: difficult to prove abandonment when the owner does appear
 Court expresses preference for salvage law over law of finds

Question 2

Adverse Possession

Answer 2

• Even though ownership doesn’t expire, someone can lose ownership by being inattentive to their property –> justified under theory of social utility
• True owner should know (constructive knowledge standard)
• Two types:
o Traditional – just meet the elements w/o any color of title
o Color of title – need color of title so that at least you think you own the property
 Recall that quitclaim deeds have no warranty/guarantee
• Non-collaborative adverse possessors cannot tack their possession together
o But someone can sell their possessory right

Question 3

Adverse Possession

• Marengo Cave v. Ross – IN (1937) “Indiana Cave”

Answer 3

o F: Opening to cave on D’s property; large portion of cave is actually under P’s (Ross) land; D had been using cave for 47 years
o H: For P; D did not adversely posses because possession was not open and notorious
o Elements: Possession must be
 Actual
 Visible
 Open & Notorious
 Exclusive
• Note: actual, exclusive, open and notorious, adverse or hostile, under claim of right, continuous for statutory period
• Adverse possessor of surface does not adversely possess the subsurface mineral rights (even if those rights were not severed from the original parcel)

Question 4

• Campbell v. Hipawai Corp. – HI (1982)

Answer 4

o	F: Boundary line dispute 
o	Elements:
	Hostile/adverse
	Actual
	Visible, notorious and exclusive
	Continuous 
	Under claim of ownership 
•	Land cannot be adversely possessed against the sovereign 
•	Statutory period usually also includes the payment of taxes (e.g. adverse possessor must pay taxes)

Question 5

Adverse possession of personal property:

Answer 5

o Multiple standards exist for when the statute of lims for adverse possession begins to toll:
 Denial of returning property
 Discovery of taken property – O’Keefe v. Snyder (P sues to recover paintings taken 30 years prior; Snyder bought from inheritor of the stolen paintings); court for P statute does not begin to toll until the owner knows, or should know, where the stolen objects are located (owner must use due diligence to discover whereabouts of taken goods, which was satisfied here)
 Known theft – tolls from the time of theft
o Rule on lost property varies considerably from state to state
o Look to true owner; then look to finder – finder generally has superior claim to all other claimants except true owner; however, owner/occupier of land where found MAY acquire title despite finder’s claim; if finder subsequently loses – still has superior claim over subsequent finders!

Question 6

o Songbyrd, Inc. v. Estate of Albert Grossman – NDNY (1998)

Answer 6

 F: D in possession of tapes that had belonged to deceased P (his estate sues); D begins to license the recordings
 H: For D by adverse possession – statutory period tolls from when the conversion occurred (statutory period was up by the time the suit was brought)
• Conversion: “when one who owns and has a right to possession of personal property proves that the property is in the unauthorized possession of another who has acted to exclude the rights of the owner”
• Thus statutory period began to toll in 1986 when D began licensing P’s songs

Question 7

CHOSE

Answer 7

Adverse Possession

Continuous
Hostile or adverse, 
Open and notorious, 
Statutory period,
 Exclusivity (must be actual, under a claim of right (believe you own land)) (CHOSE)