Property and Acquisitive Prescription Flashcards
LA Property rights (3 Dimensions)
Common, public, and private – ownership
Corporeal vs. incorporeal – touch/feel
Moveables vs. immovable – ease of movement
Every “thing” has to be subjected to each of these 3 categorizations
Ownership
Common, Public, and Private
“Common” things
– those incapable of being owned by anyone – the air and the high seas
“Public” things
– things that are vested in the state or a political subdivision in a public capacity. These can be used by the public for the public benefit.
i. Not everything owned by the state is “public”.
ii. These things are inalienable as long as they remain public.
iii. The Code lists:
- Natural navigable waters
- Territorial seas and seashores
- Highways (have to be dedicated to the public)
- Public squares
iv. For example, if state tries to sell a riverbed, it is not permissible
“Private” things
– these are owned by private person or by the state or political subdivision in that governmental unit’s private capacity (ex; state cars)
Bodies of Water
Natural navigable waters - public
i. Navigable waters, if natural, are owned by the state and are free to all. Navigable canal – manmade?
ii. Navigability means that the water is free to be used for commercial traffic. If it is navigable in fact, it is navigable in law.
Territorial seas and seashores - public
i. Louisiana claims out to 3 miles of the Gulf of Mexico.
ii. Includes Lake Pontchartrain and “arms of the sea” – small, irregularly shaped bodies of water that are in the vicinity of the open Gulf.
iii. Seashores – “space of land over which the waters of the sea spread during the highest tide of the winter season” (high water mark test)
iv. A non-navigable tideland where there is indirect tidal overflow is not seashore, so if not navigable, not public.
Rivers and Riverbeds
i. If body is an inland navigable river, it is public.
ii. The state owns the riverbed, but the ownership extends only to the ordinary low water mark. (low water mark test)
iii. The land between ordinary high and low water marks is the “bank”. Riverbanks are private. The bank is subject, however, to certain limited public uses related to the navigational uses of the river (mooring, anchoring, boating when river is high).
1. No right of the public to cross land adjacent to the river (riparian land) to get to the bank, have to get there by the river.
iv. To determine if it’s a river, look at the shape, size of body of water. Compare width to those waters that flow into it, depth, and current. Look to the historical designation on maps.
Navigable Lakes, Ponds, etc.
i. Still public if navigable. State’s ownership extends to the ordinary high water mark. Land uncovered by low water is still a public thing.
Changes Over Time to Bodies of Water
i. Changes Over Time
1. Alluvian and Dereliction – creates new low water marks in middle of river, both result in state’s loss of ownership of bank
a. Alluvian – sedimentary deposits that build up as water flows. For river, the riparian owner gains ownership when low water mark shifts as a result of alluvian
b. Dereliction – successive and imperceptible receding of water. Land previously on the state’s side of low water mark is not permanently uncovered and is on riparian side.
2. Erosion – adjacent land is subsiding, low water mark shifts inland, state gains ownership of that portion of the bank
ii. Evulsion – sudden action where land moves, owner can make a claim for ownership if made in a year
iii. If river changes course, those who lose the land can take from the riverbed in a proportion to that lost.
Roads and Highways
Can be public or private, depends on the manner of creation
If created with public money and dedicated to public, they are public
If created with private money and never dedicated to public, they are private.
If created with private money, but dedicated to public use, they are public! 4 ways to dedicate to public use:
i. Dedication – within purview of donor to either make the road public or to also donate the land under the road for public use
1. Statutory dedication – occurs when developer creates subdivision, required to have roads by statute. Recordation of map of subdivision dedicates roads to public use.
2. Tacit dedication – also statutory. Private road, but citizens who own it permit governmental entity to maintain road for 3 years. After 3 years it becomes dedicated to public use.
ii. Implied Dedication – Implied contract; if private person creates road, public uses road, and no effort made to stop public use, an ‘offer to public use’ is made which is accepted. Creates continuous public right of use.
Corporeals and Incorporeals
Incorporeals – Legal rights and legal actions are incorporeal.
i. Right to extract minerals from someone’s land = incorporeal
Corporeal things are those that can have a “body” – land, in particular
What is the right that applies to the corporeal or incorporeal?
For incorporeals, look to see what the object of the right is.
i. If right of action applies to an immovable, it’s an incorporeal immovable. (For example, mineral servitude and mineral leases)
ii. Rights and actions that apply to moveables are incorporeal moveables. Usufructs over vehicles are incorporeal moveables, for instance.
iii. Juridical persons (corporation or partnership) – moveable, regardless of what “it” may own
1. X is shareholder of Y Corp, whose primary asset is Blackacre. X’s interest is an incorporeal moveable. Doesn’t matter that Y owns immovable property. (Y’s interest in Blackacre is immovable.)
iv. Trusts – Trusts are not legal entities, they are relationships, right passes between persons in trust.
Movables and Immovables (Generally)
Scope of the transfer or encumbrance of a ‘thing’ is going to include its component parts. (Broader than fixtures rule in common law.)
Rules of acquisition (writing requirement)
Pure race public records doctrine applicable to immovable – transfers and encumbrances are immovable, but require recordation to apply to third parties
Default category is moveable.
Things that are Always Immovables
Things that are always immovable:
- Land and its component parts. (Code Article 462). Component parts of land include buildings other constructions, standing timber, and ungathered crops, only “when they belong to the owner of the ground.” (Civil Code 463)
a. If separate ownership of a building, then that building is not a component part of the land. - Buildings
a. Where there is separate ownership of underlying land and the building, building is a separate immovable (Art 464)
b. When there is unity of ownership, the building is still an immovable, but is a component part of the tract of land.
c. Critera of “building” from PHAC case – to be inhabited by people, cost, permanence, and prevailing notions of ‘building.’
i. Built on soil, completeness not required. - Timber
a. Standing timber is always an immovable. Where separate ownership from ground, it’s immovable but not component part. Where unity of ownership, immovable and component part.
b. If separate ownership, landowner can compel the timber owner to remove it in a reasonable time.
c. Severed timber is a moveable.
Things That are Sometimes Moveable, Sometimes Not
- “Other structures permanently attached to the ground”
a. Construction other than a building has to be permanently attached (water tower, underground pipe, billboard in cement)
b. If unity of ownership, it is a component part and is an immovable.
c. If no unity of ownership between the construction and the land, it is a moveable. - Unharvested Crops and Ungathered Fruits
a. If unity of ownership, it is a component part and is an immovable. If no unity of ownership between the crop and the land, it is a moveable. - *Component Parts* (often-tested)
a. Integral Parts of Land, Building or Other Construction
i. Things incorporated into a tract of land, a building, or other construction such that it becomes an integral part is a component thing. (Art 465) - Building materials, topsoil, bricks, etc.
- They are moveables until actually incorporated into the land or construction.
b. Component Parts of Buildings (Attachments)
i. Art 466, para 1: “Things that are attached to a building and that, according to prevailing usages, serve to complete a building of the same general type, without regard to its specific use, are component parts” - Plumbing, heating, cooling, electrical, etc.
ii. “Building of the same general type” = not the specific use of building, just general (residential, commercial, industrial). - Ex, nuclear camera in hospital. Not required to complete a ‘commercial building’, not component.
iii. “Prevailing Usages” – what people actually do, can change over time
iv. Some attachment to building is required, but doesn’t have to be permanent. (Plugging into the wall is not sufficient.)
c. Things That Serve The Principal Use of Other Construction (Attachments to Non-Buildings)
- Art 466, para 2: “Things that are attached to a construction other than a building and that serve its principal use are its component parts”
- Ex: Water tower – valves, piping, access ladders serve principal use and are attached, cell phone tower on top does not serve principal use.
- Where construction is not owned by landowner, the construction is moveable, ‘component parts’ are called ‘accessories’ instead (Art 508, not 466, but same test)
d. Things That Cannot Be Removed Without Substantial Damage to Building or Other Construction
i. Art 466, para. 3: “Other things are component parts of a building or other construction if they are attached to such a degree that they cannot be removed without substantial damage to themselves or the building or other construction.”
ii. Permanence – If a thing meets these criteria, it is a component part regardless of the other 2 tests! - Immovables by Declaration
a. Owners can ‘declare’ and register things like appliances, farm equipment, and machinery as component parts of an immovable. (Art. 467) Four-part requirement:
i. Unity of ownership between immovable and declared immovable
ii. Immovable must not be a private residence
iii. Component part must be placed on immovable for its ‘service and improvement’
iv. Declaration filed for registry in conveyance records of parish where the immovable is located.
Deimmobilzation of a Component Part
A component part of an immovable can be converted to a movable (deimmobilized). Art. 468
a. Damage – when a component part is so damaged/deterioriated that it can no longer serve the use of the immovable, it is deimmobilized
i. Materials separated for repair with the intention to return are not deimmobilized.
b. Transfer and Delivery
i. Component part can be deimmobilized when the owner of the immovable:
1. Executes an act transferring ownership (physically removes component), and
2. Delivers the component part to an acquirer, and,
3. The acquirer is in good faith.
c. Detachment and Removal – when in the absence of rights of third persons, the owner of the immovable detaches or removes the component part (with no intention of repair)
Moveables
Anything that is not immovable is moveable. (Art. 475)
Movables by Anticipation
- Unharvested crops or ungathered fruits owned or encumbered by a security interest held by someone other than the landowner are “moveables by anticipation” (Art 474)
Accession
Generally – ownership of a thing includes by accession everything that is produced by that thing or is united with it, subject to exceptions (Art 483)
Fruits (Thing Derived From Another Thing That Doesn’t Diminish Substance)
i. Owners - Owners of a thing acquires the ownership of its natural and civil fruits in the absence of the rights of third person
1. Natural fruits (calves, etc.) – one who is entitled to natural fruits during a particular period acquires ownership of any natural fruits gathered during that period
2. Civil fruits (revenues, rentals) – one who is entitled to civil fruits during a particular period acquires ownership of any civil fruits that accrue during this period.
ii. Possessor’s Rights to Fruits and Products
1. “Possessor” = adverse possession
2. Good Faith Possessor – a person in good faith who possesses by virtue of an active of translative of ownership who does not know of defects in title. (no reason to doubt ownership)
a. Ceases to be in good faith when defects are made known or an action instituted for recovery by the owner
b. A good faith possessor owns the fruits he has gathered.
c. A good faith possessor does not own ungathered fruits, but is entitled to reimbursement of expenses for ungathered fruits.
3. Bad Faith Possessor – a possessor in bad faith must restore the fruits he has gathered subject to a claim for expenses. No rights to ungathered fruits at all.
Products
i. Unlike fruits, products result in the diminution of a thing (non-renewable resources, such as oil and gas pre-extraction)
ii. Products belong to the owner.
iii. A possessor in good faith only has the right to reimbursement for expenses for products derived from a thing.
Accession in Relation to Immovables
Generally – Ownership of a tract of land carries with it the ownership of everything that is directly above or under it.
Ownership
i. Ownership of Improvements – code permits separate ownership of improvements (buildings, other constructions permanently attached to ground, standing timber, and unharvested crops/ungathered fruits)
1. Proving Separate Ownership:
a. Claim Against Owner of Ground – builder must prove that the landowner consented to the improvements. If landowner did not consent, then improvement belongs to the landowner. (Oral agreement is OK)
b. Claim Against Third Party – builder must prove (1) consent of original landowner and (2) timely filed instrument evidencing separate ownership in conveyance records of parish in which immovable located
i. Third party = transferee or buyer
ii. Third persons relying on public records entitled to assume that things are component parts of ground.
2. Right of Separate Owner to Remove Improvements
a. Right to Remove – when separate owner no longer has the right to keep them on land of another, he may remove them subject to obligation to restore property to former condition
b. Failure to Remove – if separate owner does not remove within 90 days after written demand, landowner may acquire ownership after giving written notice, and owes nothing.
c. Between Spouses – when buildings, other constructions permanently attached, or plantings are made on separate property of a spouse with community assets or separate assets of other spouse, and when improvement made on community property with separate assets, owner of the ground owns the improvement
3. Ownership of Integral and Component Parts
a. Unlike “improvements”, other component and integral parts (Art 465/466) belong to the owner of the immoveable.
i. Installer may remove, subject to obligation of restoring the immovable
ii. If installer does not remove after demand, owner of immovable may have them removed at installer’s expense or pay and keep.
Claims for Accession of Immovables
One who has lost ownership to owner of an immovable may a claim (subject to public records doctrine if third party)
Construction by Landowner With Materials of Other – when owner of immovable makes construction or plaintigs with materials of another, he may retain them regardless of good/bad faith if reimburse the owner of materials to current value and repairing any injury caused
Construction by Possessor
a. Good faith possessor – where construction/improvement made by P in good faith, owner of immovable may not demand demolition and removal. Bound to keep them and at option may pay to possessor either:
i. Cost of materials and worksmanship
ii. Current value, or
iii. Enhanced value of the immovable
b. Bad faith possessor – where construction/improvement made by bad faith possessor, owner of immovable may:
i. Demand demolition and removal at expense of possessor and claim damages for injury, or
ii. Keep them and pay at owner’s option either current value of materials and worksmanship or enhanced value of the immovable
c. Rights of Landowner Where Possessor Did Not Improve
i. If possessor did not improve the land, the landowner has action for damages
ii. Might also have a trespass action in tort.
Transfer of Ownership of Immovables
Ownership transferred between parties when they have ‘confected a written agreement that transfers ownership’.
Only effective against third parties when the instrument is filed in the conveyance of the office of the parish where the immovable is situated.
Transfer of Ownership of Movables
Generally – moveable is transferred voluntarily by contract between owner and transferee that transfers ownership
Effective against third parties when possession of moveable has been delivered to the transferee.
- Effect on subsequent transfers – If X sells moveable to Y but does not delivery, then X sells to Z and does deliver, Z owns if in good faith because X->Y transfer was not effective
- Effect on creditors – If M sells moveable to N but does not deliver, creditors of M can seize while moveable remains in M’s possession
Bonda Fide Purchaser Doctrine
Lost and Stolen Things – If a thing is lost or stolen, the person having possession of it cannot transfer its ownership to another.
- “Stolen” means the true owner did not consent to possession by another. (It does not include fraud.)
- This rule is subject to law of acquisitive prescription (3 years)
- When owner recovers from transferee, the owner must reimburse the transferee his purchase price if transferee bought in good faith from a merchant who customarily sells such things.
a. If sold by authority of law, then transferee will prevail against the former owner with no reimbursement.
Vices of Consent (Common Law Error/Fraud/Mistake/Duress)
- If owner transfers to a transferee in a transaction ‘tainted with a vice of consent’, and the transferee transfers to a third-party, the third party transferee gets ownership if third party in good faith and paid fair value of the thing.
a. Good faith exists unless the third party knows or should have known that transferor was not the owner.
b. Fraud is covered here, not under lost/stolen.
Registered Moveables – as a general rule, the transfer of a registered moveable requires a certificate of title
Where a question on bona fide purchaser but no clear consent, weigh relative innocence/negligence of the two parties and award ownership to less negligent party. Recent cases apply the lost/stolen analysis to these situations
Co-Ownership
Generally – ownership of the same thing by two or more persons is “ownership in indivision”. In absence of other provisions, shares of all co-owners are presumed to be equal
Rights and Duties of Co-Owners
Fruits and Products – if produced by a co-owner then all co-owners share fruits and products in proportion to their ownership after deduction of costs of production.
Use and Management of Co-Owned Thing
Partition (Ending of Co-Ownership)
Use and Management of Co-Owned Thing
- Co-owners may use and manage a co-owned thing:
a. According to an agreement (consent of all co-owners)
b. Where there is no agreement, use and management:
i. By “destination of the thing” – historical use - Ex, was a retail store, one wants to convert to factory, other doesn’t, remains retail store
- All can use it, can’t deprive another of making destination use
- If impossible, resort to partition
ii. By court order – when partition is not available and co-owners cannot agree, a court may determine use or management on petition of a co-owner - Alienation
a. A co-owner has freedom of dispensation as regards his share of a co-owned thing
b. All co-owners must consent to a lease, alienation, encumbrance, substantial alteration or improvement - Right to Reimbursement of Expenses
a. A co-owner is entitled to reimbursement for necessary expenses, ordinary maintenance, and repairs. This is subject to reduction for value of that co-owner’s exclusive enjoyment.
b. Substantial alterations or substantial improvements may be undertaken only with consent of all co-owners
i. Improvements Without Consent: - Improvements consistent with use of property – where substantial alterations are made that are consistent with use of property, other co-owners may not demand demolition or removal. Bound to keep them and pay either cost of materials/workmanship, or current value, or enhanced value of immovable
- Improvements inconsistent or where consent denied, other co-owners can demand demolition/removal and claim damages or keep and pay current or enhanced value
Partition (Ending of Co-Ownership)
- Any co-owner has the right to demand partition.
- Partition can be excluded by agreement for up to fifteen years. (Exception for electric generating plant, which goes to 99 years.)
- If use of thing is indispensable for the enjoyment of another thing owned by one of the co-owners, partition is excluded. (Graves)
- Modes of partition:
a. Voluntary partition – all co-owners can agree on mode of partition. Extrajudicial partition can be rescinded on account of ordinary vices of consent.
i. Can be rescinded for “lesion” if value of the part received by a co-owner is less by more than one-fourth of the fair market value of the portion that he should have received.
b. Judicial partition
i. Partition in Kind – thing divided into lots of nearly equal value, total aggregate value of each individual lot is not significantly lower than value of entire property. (Preferred, but very hard to do.)
ii. Partition by Sale of Thing – partitioned by licitation (public auction) or by private sale, and proceeds are distributed to co-owners
Ownership Distinguished
Rights of Ownership – bundle of rights, consists of:
i. Usus – right to use and enjoy the property
ii. Fructus – right to the fruits produced from the property
iii. Abusus – right to alienate and encumber the property
Full Ownership – consists of all three elements (usus, fructus, abusus)
Naked Ownership – includes only the element of abusus. The person holding usus and fructus is a usufructuary (comparable to a life estate)
Servitudes Generally
Servitudes are rights in things less than full ownership
i. Predial Servitudes – a predial servitude is a charge on a servient estate for the benefit of a dominant estate
ii. Personal Servitudes – a personal servitude is a charge on a thing for the benefit of a person. Three types: usufruct, habitation, right of use
iii. To distinguish – if the right granted confers an advantage on an estate, the servitude is predial; if a right is merely for convenience of a person, the servitude is not predial unless it is acquired by a person as an owner of an estate for himself, his heirs, and assigns.
Predial Servitudes
A predial servitude is a charge on a servient estate for the benefit of a dominant estate.
i. An ‘estate’ is a distinct corporate immovable. Tracts of land, buildings, and standing timber are estates.
1. Constructions other than buildings are not, and are not subject to predial servitudes.
ii. A predial servitude itself is classified as an incorporeal immovable.
A benefit must exist to the dominant estate. But the benefit need not exist when servitude is created, can be a possible convenience or future advantage.
Three types of Predial Servitudes
Natural Servitudes – arise from the natural situation of estates
Legal Servitudes – imposed by law
Conventional/Voluntary Servitudes – established by juridical act, prescription, or destination of the owner