M2: Subsequent Possession (Finding, Gifts, AP) Flashcards
Explain the Doctrine of Relative Title
Who has the better title?
The true owner has the best title, but given the situation we can ignore that.
In this doctrine the first finder has better rights. Why? First in Time! Protecting the possession of a first finder, which is a default rule that is often used when you don’t have anything else to work with.
We protect ownership and possessors because it advances social values. Certainty, Fairness, Efficiency
Explain how each value is advanced through relative title
Certainty: What you have with you is probably yours. People don’t carry around titles and receipts to everything. True owner may be absent or unknown.
Fairness: You have expectations on what you hold will not be taken from you.
Useful/Efficiency: Enables socially useful activities, ex: voluntary bailments
Name at least three reasons why we have relative title in property law (protecting finders and possession, not just owners)
- Put items back into the stream of economy (efficiency)
- Promotes peaceful public order (certainty)
- Minimizes self help (judicial economy)
- Encourages honesty (social efficiency)
- Allows socially beneficial activities to occur (ex: bailments)
What is the rule of finders and how does it apply to property law?
Rule of Finders: The possessor/finder has better rights beyond the rest of the world EXCEPT the true owner AND any prior possessors. Beyond the rightful owner, a finder of property is the next in line as the owner and may “maintain trouver” With subsequent ownership, title is relative (better rights)
“Possession is 9/10 of the law”
What is the jus tertii defense and why was it not applied in Armory v Delamirie?
“jus tertii defense”: third party rights
+ Why didn’t the D give the ring/stone back? Probably because the P couldn’t prove ownership, so the D asserted rights of an absent true owner as his defense.
+ Courts usually reject it b/c they want the defendant to stand on their own rights and not rely on an unknown third party, as it makes the defendant look like more of a thief than the plaintiff.
What is a Bailment by definition? What are the two types? List an example for each.
Why is it important to have a distinction between the two types?
Def of Bailment: rightful possession of goods by a person who is not the owner.
Two types: Can be voluntary or involuntary.
Voluntary is very common.
Ex: dry cleaning, keys left with valet, pet at the vet’s office
Involuntary less common. In this case, Armory (P)
Why the distinction? Standard of care from the Bailee to Bailor depends on who benefits from the arrangement
H: F1 loses a watch that they found a year ago. F2 finds it. Later on, F1 finds out that F2 has his watch. Who gets to keep it?
Under the Doctrine of Relative title, F1.
H: Would it have made a difference if Armory swiped the jewel from the real owner’s dresser while at work?
Generally, no. Why? Certainty and judicial efficiency “Any other rule would lead to an endless series of unlawful seizures and reprisals in every case where property had passed from possession of rightful owner” = recognizes possessory interest of a wrongdoer from above all but the true owner.
What were the two conflicting rules and how were they applied in Hannah v Peel?
Finders Rule: Whomever finds a lost item/chattel has rights over everyone besides the true owner
Applied directly to the case:
There was a lost brooch→ P found it → As soon as he was aware it was of value, P gave it to the authorities
→ D never had possession of it → D never had knowledge of it until police notified him
————————-> P is the owner above D
Freeholder’s Rule: If a person finds property while working for someone else/on someone else’s real property, the real property owner has rights above all else but the true owner.
+ Man possesses everything which is attached to or under his land
+ So long as the real property owner exercises control (use rights) on the real property.
+ It doesn’t matter if the property owner is aware of the item’s existence, as long as they are attached to or under the land, it belongs to the owner as a matter of property rights.
When classifying lost property, what are the three main types? Why does this matter in the US?
Lost → True Owner → 1st Finder
Mislaid → Turned in to owner of locus (place found) for a period of time → either goes to True Owner who claims it OR it gets recategorized as abandoned
In the US, owners of the mislaid items usually win. Why? Owners of mislaid items can often retrace their steps to find locus quo again.
With regards to lost items, finders usually get to keep because the owner really doesn’t know where it is, so it rewards honesty in finders (finders keepers)
EXPECTATIONS AND CONTEXT, also the category determines the better relative owner
What were the prevailing values demonstrated by the court in Hannah v Peel’s decision?
Economic efficiency: Gets items back into the stream of commerce. Also protects finder’s relative title above all
Honesty: Hannah came forward and was forthright, and this court rewards his “commendable and meritorious”
Fairness, Expectations, Use: B/C Peel never occupied the house, he bought it and it was taken over by the Army (involuntary bailment). By the court’s definition, Peel never “used” the house and they are treating his rights to items in the house differently than the real property. Why? Expectation of the parties. It doesn’t matter where it was found, what matters is that Peel should expect that when soldiers occupy his home, the dominion control lessens. AND because Hannah had a right to be there, while performing patriotic duty, plus was especially honest and had similar rights to Armory.
Why are the classifications between mislaid and lost property problematic?
It incentivizes dishonesty and goes against the purpose of rule of finders. It’s subject to manipulation. It’s also inherently uncertain and unfair. The classifications are based on state of mind, which is subjective. Instead, many states have a statutory regime with a period of time where the owner can come claim the item, if not claimed it’s auctioned or donated to charity.
How do you define and classify abandoned property?
Abandoned = left behind intentionally, waiving rights to confer, true owner out
Ex: The baseball in Popov was deemed abandoned once Barry Bonds hit it into the stands.
In US property law, abandoned property goes to the finder. Abandoned property ownership is not relative; rather it is absolute.
H: What if you help a friend plant flowers in their yard and you come across a buried box of old, precious gold coins. Who gets to keep them?
Treasure trove = British Common law says that the goods would be auctioned off for a museum and the proceeds split between them (kind of like Popov). US law would likely say that the owner of the land where the coins were found gets to keep them.
Should the law of finders be changed so that the finder in shipwrecks is entitled to a reward if the property in question is returned to its owner or held to be in possession of the owner locus?
Salvage law = that a ship lost at sea and settled on the seabed remains the owner’s property BUT anyone subsequently reducing the ship or its cargo to possession is entitled to the salvage award.
Name at least two justifications for Adverse Possession in favor of the AP
1) Earned Rights: “I did the work and earned rights over the true owner.”
2) Labor Theory and Accession: By putting in the right type of labor (productive use), you have made something that was not originally yours, yours. Metaphysical.
3) Attachment theory: The idea of losing something is painful, you can’t separate the AP with the land.
Name at least two justifications for Adverse Possession in relation to the true owner
1) Sleeping on rights: You snooze, you loose
2) Fairness because quite a bit of time has lapsed
3) Efficiency in not having to go back 30+ years for title searches
4) Fairness + Judicial Efficiency: You meet these terms, we make the decision that the land is yours
What are some community based justifications for Adverse Possession?
1) Making efficient use of the land. Use>Nonuse
2) Wealth distribution (in 3rd world countries)
3) Protecting interests\expectations of neighbors and third parties.
4) Economic value: growing corn and selling it locally vs. letting open field space go wild
What are the five elements of adverse possession?
1) Actual Entry and Use
2) Exclusive Possession
3) Open and Notorious
4) Adverse Under Claim of Right
5) Continuous and uninterrupted
What are the three states of mind when it comes to the adverse claim of right? What is the majority opinion and why?
1) Objective/Irrelevant (majority rule): Who cares about a state of mind since the action has begun and the statute clock is ticking? Why majority opinion: If you worry about subjectivity, you’re missing the intent of the rule. Other two encourage lying.
2) Good faith/Innocent: “I thought I owned it”
Color of title: mistakes happen with title/deeds, a few things to consider with;
Juries tend to favor good faith trespassers in AP cases
3) Aggressive possessor/Maine doctrine (minority view): “I thought I didn’t own it, but intend to make it mine” Not a issue in US, but think of wealth redistribution purposes in 3rd world countries.
If someone is successful in meeting all of the necessary elements to adverse possession, is s/he responsible for paying taxes on the property they now have title towards?
If you get the possession/title, it dates back to the date of entry. You are responsible for taxes, value of what’s on the land.
Some AP’ers willingly pay taxes during the statute of limitations to prove their adverse claim of right.
True or false: If the true owner invites you to use their property, you can adversely possess their land.
False: AP’ers can’t be there on an invite from the true owner.
True or false: An adverse possessor must provide notice in writing to the true owner in order to meet the open and notorious element.
False: Open and notorious behavior in a customary way provides constructive notice to the real owner. The actual owner and the whole world would be on notice if the AP was on the property, but it doesn’t have to be in writing
How does color of title help or hinder AP arguments?
Color of title: an incorrect or invalid deed
a) presumption of innocence;
b) shorter limitations;
c) Constructive possession (quasi owner) of everything in the incorrect document.
A good thing but not as strong as actual possession. Use and actual possession is more important and wins in a dispute over quasi ownership. Prior in time wins over constructive possession
Why are both of the AP church cases we read in class good examples of why subjective state of mind should not matter?
Honesty was not rewarded, the land owners were sleeping on rights, it defeated the purpose of why AP law was created in the first place
H: O owns and has been in possession of a 100-acre farm since 1975. In 1994, A entered the back 40 acres and has a color of title for the entire 100 acres. A has also improved her back 40 acres. What happens when A tries to eject O from the property, citing AP?
Patrick v. Goolsby: Person A does not eject Person O from their land or get full title to the 100 acres. However, A gets the 40 acres that they cultivated.
H: Two lots, 1 and 2, are owned by X and Y respectively. X and Y are not in possession. The lots are conveyed by an invalid deed from Z to A, who enters lot 1 and occupies it in the usual manner for the period required by the statute of limitations. A sues X and Y to quiet title lots 1 and 2. What’s the result?
Y wins.
Wheatley v San Pedro: There was no entry upon or actual possession maintained of any part of the land in dispute until a date less than five years prior to the start of the action. Under Cal. Civ. Code § 322, constructive adverse possession required continued occupation for five years. It would have been unfair to deprive appellee of title to his land without him ever having actual notice that his title was disputed when there was no visible invasion of his title was disputed when there was no visible invasion of his premises
What is the Maine Doctrine in regards to adverse possession?
Maine AP doctrine (not used anymore, not even in Maine) = AP must have “an intention to claim title within a certain boundary, whether it shall be the correct one or not.” AND in Maine, AP mistakes with neighbor’s boundaries are negated. The mistake negates adverse intent.
What are the modern tendencies to mistakes on boundary encroachments?
More fair decision: Forcing conveyance (at market value) of land from the owner to the improver. OR give the landowner the option to buy the improvement (at market value). Many states have provisions for such an issue with land improvements and boundaries.
How do courts typically handle encroachment that are very minor? What if they’re pretty large?
Sometimes, if the error/mistake is trivial, the court will dismiss altogether in favor of judicial economy. If the encroachment takes up substantial land, removal of the improvement might be ordered. Depending on competing consideration. Ex: Amko v Welborn, 2001 and the two-part test applied.
Why do courts often treat intentional encroachments so harshly?
Stewart E Sterk, Property Rules: “Legal rules can create incentives to search for information even when the search would be inefficient. In particular “property rule” protection often gives leverage to right holders disproportionate to the harm those right holders would suffer from intrusion on their rights. That leverage, in turn, gives potential resource users private incentives to expend time and money on search even when search will generate minimal social benefit. “Liability rule” protection, by contrast, limits incentives to conduct inefficient search for the scope of property rights. Thus, high search costs can explain the unwillingness of courts to award injunctive relief in cases of “innocent” boundary encroachments.”
What elements are necessary to be able to utilize tacking in AP from the AP’s side?
- Continued occupancy in both parties
- Privity/voluntary transfer between both parties
- adverse possession or color of title (or both)
Tacking adds time, adds land for AP’ers
What are necessary elements in tacking from a true owner in adverse possession?
+ Involves Privity: any reasonable relationship (low standard) via sale or will
+ Only passing the same interest via deed
Why did the Howard v Kunto court decide the way they did?
This is not an adverse possession case at all; rather it’s a doctrine that saves the day in the case. The easiest solution to the problem with bad deeds in this case would be to swap land, but that wasn’t an option. AP did the trick!
One element to AP missing in this case: Actual Entry, the Kuntos never stepped foot onto the land in dispute. How did the court miss this? They were eager to solve the case.
What is the disabilities statute in relation to adverse possession? What are the three categories of protected parties under this? How does it work?
Disabilities: Extends period of time given for owners to kick someone out/quiet title
Applies to/Protects three groups:
1) minors
2 in prison
3) unsound mind
How it works: If the owner has one of these disabilities at time of entry, we stop the clock until the disability no longer applies OR owner dies
If the disability no longer applies, it’s 10 years from the removal of disability
The timing of the disability could be a windfall or a curse! Shortening the statute or making it significantly longer
H: Owen, a 10 year old, was willed property in 1990. Later that year, person T enters this property with an intent to adversely possess the land. In what year does he have to kick out an AP?
Statute of limitations: 10 years
Age of majority: 18
1998 = Owen turns 18, the clock starts now. 2008 = 10 years from Owen’s 18th birthday.