Property Law Flashcards
Rivalrous
Your use does interfere with another use of information
Non-Rivalrous
Your Use of Information does NOT interfere with others’ use of information
Excludable
You can exclude others from your property - i.e. Physical property
Non-Excludable
It is difficult to exclude others from your property - .e. information
Defenses to Property Rights
- Eminent Domain
- Easements
- No racial covenants
- Adverse possession
- Zoning laws
Tragedy of the Anticommons
- Multiple owners hold rights to a scarce resource
- Private land and others can’t get to resource (too many rights to exclude)
Tragedy of the Commons
Land in common is overused
Three Rights of Property
(1) right to exclude:
(2) right to transfer
(3) right to use
Locke Labor Theory
Property is the way to reward your labor: put work into something, should be able to reap the reward
Personhood Theory
- How you express yourself in relation to the environment
- Person’s will having an effect on the world
- Personal property vs fungible property
Utilitarianism
:greatest interest of society: encourages land development and overuse: prevents tragedy of the commons
- give just enough protection for people to create works that otherwise wouldn’t but also don’t want to give too much protection to those who would create things anyway
- utilitarianism justification of property:
(1) incentives for development (private property fixes it because the right to exclude helps so others don’t take your idea or work you’ve done to your land)
(2) prevention of depletion of finite resources (scarcity: tragedy of the commons) - scarcity: privatization has worked for certain industries (lobsters & oysters) to prevent the tragedy of the commons)
- in other industries, it’s not necessary
- First occupancy or possession
- First to possess an item owns it
Liberty or civic republicanism
- Designed to implicate democratic self government
- If I have my own property maybe that allows me to play a greater role in the government
- Distributive justice or fairness
- Property can be used to give justice
Pierson v Post
Trespass on the case (less direct than trespass): Post was fox hunting with dogs on common land when Pierson stepped in with knowledge that Post had been hunting the fox and killed it himself.
Holding: pursuit alone is not enough: actually have to capture it or deprive it of its natural liberty through something like a net or a trap (Dissent: “reasonable test”: not clear, vague, & subjective)
-Policy reasoning: want foxes killed (Dissent: focuses on pursuit)
Popov v. Hayashi
Barry Bonds’ record-setting home-run baseball; MLB didn’t have a claim to the ball once in play the first person in possession is the new owner; ball hits Popov’s glove because of crowd that jumped on him: Hayashi, a bystander, picked it up. Court sold the ball at auction & split the $
Ghen v. Rich, U.S. Dst. Ct. – MA (1881)
Admiralty suit to recover the value of a fin-back whale: whale was found stranded on the beach and instead of sending word to the town, as custom, he took it to an auction and sold it to respondent (they didn’t know who killed it but did know someone in the business killed it)
- custom: whaler wins: when a whale is harpooned, it pops to the surface, whaler is sought and told about it (may not look at the future of the resource as much; sometimes looking to the industry is best)
- if apply Pierson v. Post, whaler still wins: mortal wounding is enough, dead: deprived of its natural liberty
Keeble v. Hickeringill (1707)
P had a decoy pond to trap ducks, D had his own pond but shot his gun to scare the ducks away from P’s pond
- D tries to hinder someone’s trade and livelihood (could have built a better duck pond and that would have been competition on the merits)
- P wins: interference with business interest: laws against unfair competition/malicious interference
- policy: consistent with Pierson v. Post: help kill as many ducks as possible
- constructive possession: not actual possession- continuation of possession as long as you have the intent and maintain ability to control (when duckies are on your land)
- policy purpose: to discourage trespass
Relativity of title
look at relation of title of parties and it’s not always with the rightful owner
-title isn’t an absolute thing: can occur between different parties
Domesticated animals
owner has rights to it: want to encourage domestication of animals and reward the owner but need to be sure to warn others that it is domesticated
- if it’s not typical of the area: obviously domesticated
- if it is typical of the area: need to do more to warn others
Eminent domain
government can take your land for public interest but must show significant interference
Fugitive resources
resources not owned by anyone
- oil and gas are collected in underground reservoirs
- today, probably have an injunction v. excessive drilling: policy matter: don’t want to use up all the resource: want the resource to be used in the future (limit on the rule of capture)
- not allowed to drill at an angle to cross someone else’s property
- surface water: (now, can’t take as much as you want, because it’s not in the best interest of the resource)
- prior appropriation: 1st to capture and put to beneficial use is the owner
- riparian: landowner along the source owns it
- groundwater:
- English rule: draw whatever want (similar to capture rule)
- American rule: can’t waste it (must be reasonable: encourage development)
Externalities
When a person does not consider the full impact of their action
- Not thinking about 3rd parties
- Resources can be misused
- i.e pollution, overuse
- Can be positive
- Music, flower boxes
- Things that benefit the community as well
- Can be positive
Cyber Property
- The right to exclude others from right to access to a network connected resource
- Libertarian’s – same rights as real property – transferred
- Trespass to chattel
- Use of, interference with, a persons tangible property – you must show harm.
Abuse of right
In exercising their rights there is an intent to harm others
Coase Theorum
- In the absence of transaction costs (costs of entering into negotiation) it doesn’t matter if the defendant is liable because the parties would negotiate for the efficient use.
- Regardless of the law, the parties may still find it in their best interest to negotiate
Adverse Possession Justifications
(1) statute of limitations: imp. to give the initial owner the opportunity to reestablish ownership (policy: adverse possessor is likely to develop more once receiving title from owner who was sleeping on it)
(2) protect expectations: protecting the interest of neighbors, who think the adverse possessor is the owner (and protecting the expectations of the adverse possessor)
(3) quieting title: find out who the owner is which provides proof of title and corrects errors
*(4) personhood: property is the extension of personhood and the property owner should be bound to find out who is on his land and get them off
-look at gain & loss: if 20+ years go by and the owner tries to take back: no real gain to owner but big loss to the adverse possessor- it becomes a part of their personhood
*(5) diminishing marginal utility of income: look at the wealth reduction in adverse possessor compared to owner
-owner leaves for 20+ years and comes back, significant wealth reduction to the adverse possessor but not a big gain to the owner
*(6) prospect theory: loss of an asset is felt directly (adverse possessor has land taken back) while gaining land that has been developed by an adverse possessor (not as much as a gain as the loss of the adverse possessor)
(7) promote development: of wilderness areas
(8) penalty (sleeping) theory: penalize owner for sleeping on their rights; focus is on the owner: don’t like what he’s doing & punish
Adverse Possession Requirements
(1) actual entry: gives exclusive possession/right- want to be sure statute of limitations has begun to run (not shared with landowner)
- allows owner to commence action for trespass (reflects earning principle)
(2) open and notorious possession: penalize owner by providing notice that someone is on the land: attentive landowners would have notice (reflects sleeping principle)
- threshold is lower if it’s wilderness: ex: hunting, timber, fishing, post signs
- below land? Don’t know who is under it so notoriety is an issue
(3) continuity: act as the owner would: depends on the nature of the property (some require more efforts than others)
(4) adverse/under claim of right:
Three States of Mind of Adverse Claim of Right
(1) objective view: (MAJORITY)
- State of mind is irrelevant
- The majority approach
- Look at other qualifications and ignore intent
(2) good faith standard: Adverse possessor thinks they own property
(3) aggressive trespass standard (bad faith): Adverse Possessor knows they do not own he property
Claim of Title
one way of expressing the requirement of hostility or claim of right on the part of any adverse possessor
color of title
refers to a claim founded on a written instrument (deed/will) or judgment or decree that is for some reason defective and invalid (England & most juris don’t require this) can get all of the land described in the deed if you adversely possess part of it
Van Valkenburgh v. Lutz, Ct Apps: NY (1952)
- Lutzes build house and walkway over other nearby lots to have easier access to their house but then planted veggies, fruit trees, chicken coops, and junk. Van Valkenburghs later bought the lots that they have cultivated and put up a fence to keep them out. Lutzes still wanted to use the easement to get to their land.*
- Q: what needed for adverse possession? “actual occupation by claim of title” shown by: (1) protected by substantial enclosure (2) usually cultivated or improved
(1) no enclosure here: no fence or anything
(2) usually cultivated? Ct doesn’t see as sufficient: said have to cultivate the entire area - Dissent: Lutzes cultivated from one side to the other and don’t have to cultivate whole premises anyway
- CT: Lutz admitted knew shed not on his land and was not in good faith & also said mental state was missing for hostile takeover: Ct had it out for Lutzes: here, he was going to lose either way: either it had to be in good faith or else in bad faith
Adverse Possession Doctrines
Maine Doctrine: The occupant must intend to take the property and be hostile, cannot be a mistake rewards intentional wrongdoing
Connecticut Doctrine: criticized Maine doctrine and said it’s not an inquiry into the adverse possessor’s mind: instead, objective standard where state of mind isn’t determined (Mannillo v. Gorski (1969) (Supr. Ct NJ)
Boundary Dispute Doctrines
Normally boundary disputes are NOT adverse possession due to lacking open and hostile.
(1) agreed boundaries: oral agreement is enforceable if accepted for a long period
(2) acquiescence: long acquiescence is evident of agreement between parties fixing boundary line because owner knows but doesn’t do anything to stop it (similar to having permission)
(3) estoppel: one neighbor makes representations about the location of common boundary line & other neighbor relies on it
Innocent Improver & Relative Hardship Test
Innocent Improver: modern view:
- forced sale to mistaken builder; or
- option of owner to buy the improvement from mistaken builder
Relative hardship test: weigh the hardship to P if it’s not removed (the structure mistakenly built) to the hardship of D if you do remove it:
- if so minor, relief may be denied all together
- if so substantial despite good faith, removal may be forced
Howard v. Kunto (1970)
Takeaway: the use of the land as normal is enough, the land was used as a summer house, but this was enough for continuous for Adverse possession
Tacking
- *Time:** time- add together two possessors’ time in possession to establish continuity of possession
- for adverse possession, it makes it more likely that Statute of Limitations will be satisfied
- *Space/location:** – one can own land and then add a piece on to the connected land
- Privity – THIS IS THE KEY – need Privity
- In a specific relationship between possessors – i.e a contract, deed, voluntary transfer, will,
- Kicking someone out or abandoning the land does not constitute privity
Disabilities
- helps the owner and gives them more time than they typical adverse possession
- You get to choose your disability if you have multiple
- Examples:
- Minor
- under 18
- 13 is the optimal age for the minor (varies in jurisdiction)
- Add the 5 year differential to the standard 10 years
- Below 13 is better
- Unsound mind
- Imprisoned
- May have longer to retain property to extend the statute of limitations
-
Rules:
- You cannot tack together disabilities, only the first one counts
- The disability has to exist at the time the cause of action accrues – the time of entry
- You only care about the owner – don’t care about the heir
- Minor
Adverse Possession of Chattels
O’Keefe v. Snyder (NJ)
- Stolen paintings case
- Statute of limitations
- Serve beneficial purposes
- Give certainty and allow us to go about business to know who owns an item
- Discovery Rule
- Determines when the statute of limitations begins of run, and does not start until the injured party becomes aware they lost that property
- “Cause of action does not accrue until the party discovers or should have discovered the facts that form the basis of the cause of action”
- More detail on the facts the better
o Identity of taker
o What was taken - With land it is not moveable, we know where it is, with chattels they can be moved, it may not be obvious where it is
- Tacking is allowed
- Privity is necessary
Guggenheim v. Lubell (NY 1991)
New York Demand & Refusal Rule: Statute of Limitations doesn’t begin until owner makes a demand and it’s refused: gives even more protection (gives a lot more time)
Purchasing from a Thief?
- Good faith parties – policy questions
- Purchaser – may have a good faith argument – may be an innocent party
- Owner – Protections
1. It is their property
2. Don’t want to encourage theft
3. Want to encourage creation – locke labor
4. Is there anything else they could have done? - Policy Reading
- Stolen – Owner to thief to purchaser
1. Should favor the owner because purchaser dealt with thief - Purchase – Entrust
1. Owner – Entrustee – Purchaser
• Owner voluntarily doing something – entrusting to someone
• Purchaser should be protected
Intestate/ Intestacy
Someone Dies without a will, who gets their possessions?
Heir
- Issue (children, grandchildren) – split evenly between them today
- Ancestor (Parents)
- Collateral (Siblings, niece/nephew, aunt/uncle, cousin)
- Escheat – if there are no heirs then it goes to the state