ImportantNotes: Thereare3sectionstothisoutline: 1.Aonepageattacksheet/issuechecklistthatshouldbesemimemorizedto reflectthequestionsyoushouldbeaskingyourself(i.e.istheasshole governmenttryingtotakemyproperty?),thustheissuesyouneedtospotin ordertomaximizepoints. 2.Thecorrespondingrulesheet.Noticeitismatchedexactlytotheissue checklist,soifyouspotanissuebutforgottherule,youhaveaneasyreference. 3.Thefulloutline.Thisalsomatchesuptotheissuechecklistandrulesheet.This isthe3rdlayerofreferenceonlywhenyouneeddetailedinfoonanissue/rule,if youabsolutelyneedtocite/referenceacase,orwishtothrowinsomepolicyat theendofyourIRAC.

PurpleFont=Policy YellowHighlighting=Rules GreenHighlighting=Examples(includingimportantcases) Goodluck!

FINALATTACKSHEET
HowdidIgetthisproperty? DoIhave1STPOSSESSION oftheproperty? ByFIND? ByCAPTURE ofa wildanimal? ByCREATION? PartofmyBODY? ByACCESSION? By TRANSFER NEMODAT? ByBONAFIDEPURCHASE? ByGIFT? ByaTRUST? AFIXTURE partoflandIgot? ADCOELUM? ACCRETION? AVULSION? ADVERSEPOSSESSION HowdoIprovethepropertyismine? IstheSTATUTEOFFRAUDS satisfied? DidIREGISTER myTITLE? DidIRECORD myTITLE? WhatTYPE ofRECORDINGACT didIuse? IsmyinterestevenRECORDABLE? Doesthe SHELTERRULE apply? DoIhaveaWILDTITLE?

Isthegovernmenttheassholetryingtotakeawaymyproperty? DoesmylandfallunderthePUBLICTRUSTDOCTRINE? TakingmyNAVIGABLE AIRSPACE? TakingmyNAVIGABLEWATERWAYS? DidthegovernmentTAKE myland? IsthisPHYSICALOCCUPATION orDEPRIVATION ofmyuse? AretheyclaimingNUISANCEABATEMENT? IsthecitydoingsomeREGULATION? DidIget JUSTCOMPENSATION? IsthegovernmenttakingforPUBLICUSE? HowdoIrentmypropertyout? WhattypeofLEASE isit? DoestheSTATUTEOFFRAUDS apply? DidIdeliveryACTUALPOSSESSION? WhataretheTENANT'SDUTIES tome? HowdoIKICKTENANTOUT andREPOSSESS myproperty? DidICONSTRUCTIVELYEVICT mytenant? WastherereallyaBREACH oftheCOVENANTOFQUITE ENJOYMENT? OrdidIBREACH anIMPLIEDWARRANTYOFHABITABILITY? WTFdoIdoafter tenantABANDONS thepremises? WasthisaCOMMERCIALLEASE? DidmytenantSUBLEASE hisrighttooccupy? DidmytenantASSIGN hisrighttooccupy? DidIASSIGN myproperty?

DoIhavetosharethispropertywithsomeotherasshole? IsthereaCONCURRENTOWNER? AmIMARRIED?

HowdoIgetridofthisproperty? CanIABANDON orDESTROY it? CanITRANSFER it? SEEFREEHOLDINTERESTSCHART CanICOMPLETELY RESTRICT FUTURE transfers? IfIhaveaLIFEESTATE didIWASTE something?

Issomeassholetryingtowalkthroughorfuckupmyproperty(ordidhealready)? DoIreallyneedthe ABSOLUTERIGHTto EXCLUDE? WasitaCRIMINAL act? Didsomeasshole TRESPASS onmyLAND? Waitaminute,istherealegitimatereasonorexcuse Didhefuckupmy PERSONALPROPERTY? forthisasshole'strespass? DidhefuckupmyINTERNETS? WashistrespassaNECESSITY? HowdoIREMOVE theassholeFROMMYLAND? HowdoIgetaBUILDINGENCROACHMENT offmyland? WasthereaCUSTOM tohuntonmyland? DudeisafuckingNUISANCE,howdoImakehimSTFU? DidImakemylandaPUBLIC ACCOMMODATION? HowamIgoingtoGETMYSHITBACK? DidILICENSE itout? Whydon'tIjustuseSELFHELP? DidI(orapreviousowner)GRANT an DidmyTRUSTEEscrewup? EASEMENT, how,andwhatkind? WasmyBAILMENT fuckup? WastheEASEMENT properlyTRANSFERRED to AmIgettingDIVORCED? thenewasshole? CanIkickmyCOTENANT out? IsheblockingmyLIGHT and AIR? IsmyCOOP orCONDO tryingtokickmeout? DidtheassholeABANDON the EASEMENT? DidI(orapreviousowner)GRANT aREAL COVENANT? SEEPRIVITYCHART DidI(orapreviousowner)GRANT anEQUITABLE SERVITUDE?

Outline Page 1

FINALRULESHEET
HowdidIgetthisproperty?
DoIhave1STPOSSESSION oftheproperty? Commonlawholds"firstintime,firstinright" thatis,apersonwho (1) controlsorholdstheproperty, withorwithoutaclaimofownership,(2) withanintenttopossess,istheoriginalpossessorwithgreater rightsthantheworld. ByFIND? Afinderoflostproperty isapersonwho(1) takescontrol ofthepropertyand(2) hasthe intent of maintainingpossessionoftheproperty;hehasgreaterrightstothefoundpropertythanthewholeworld, exceptfortherightfulowner,apriororrightfulpossessor,orapersonholdingthroughtherightfulowner orpossessor. ByCAPTURE ofawildanimal? Apersonwhogetsactualorconstructivepossession(throughlandownershiporcustom)ofawildanimal withitsfreedomrestricted isgrantedrightstotheanimalsuperiortotheworld. ByCREATION? Thefirsttocreatesomethingnewornovelisrewardedwiththerighttoexcludealltheworldfromsaid property[subjecttosome limitations thatareunfairinmyopinion(tobediscussedlater)]. PartofmyBODY? Noonecanownanotherpersonbecauseof unalienableselfownership sousuallybodypartsarenot definedasproperty(foreitherdueprocessorconversionpurposes,atleast)forpolicyreasons. ByACCESSION? Ownershipisgiventosomebodywhenhemistakenlytakesaphysicalobjectthatbelongstosomeoneelse andtransformsit throughhislabor intoafundamentallydifferentobject. By TRANSFER NEMODAT? Nemodatistheprinciplethatnoonecangivethatwhichhedoesnothave,sothetransferee'srightsare derivedfromthoseofthetransferor ByBONAFIDEPURCHASE? TheUCC makesanexceptiontoNemoDatandallowsagoodfaithpurchasertokeepthegoodwhenhe(1) paysgoodvalue (2) ingoodfaith,and(3) thetitlewassimplyvoidable insteadofvoid. ByGIFT? Agiftisapresenttransferofpropertybyonepersontoanotherwithoutanyconsiderationor compensation,wheretheremustbe(1)intent tomakeagiftbydonor,(2)delivery bydonortodonee,and (3)acceptance bydonee. ByaTRUST? Atrustisthreelegalpersonasplusatleastone"thing";thesettlor createsthetrustandistheabsolute owner;thetrustee isthepersonwhoreceivesthetrustandisresponsibleformanagement;the beneficiary isthepersonthetrustbenefits. AFIXTURE partoflandIgot? Athingthatwasoriginallyamovablechattel, (1) byreasonofitsannexation to,(2) application and associationintheusewithland,and(3) theintent ofthepartymakingannexation isregardedaspartof theland. ADCOELUM? Aowneroflandalsoownsunderneaththelandandabovetheland"towhomthesoilbelongs,heowns alsototheskyandthedepths." ACCRETION? Gradual changeinbanksborderingrunningwatermayaddorsubtracttoanowner'slandbecausethe boundarylineofthepropertyremainsatthecenterofthenew streamevenwhenithasmoved. AVULSION? Sudden changeofthebanksofastreamsuchaswhenariverformsanewcourseanddestroysorcreates newbanks,theboundaryremainsasitasinthecenterofwheretheold channelwas located. ADVERSEPOSSESSION ApartymayobtaintitletorealpropertybyAPwhenshe,byactinglikehavingclaimofright,(1) continuously occupiesanother'slandin(2) actualpossession thatis(3) openandnotorious,(4) exclusive, (5) hostileandadverse forlongerthanthe(6) SoL

HowdoIprovethepropertyismine?
IstheSTATUTEOFFRAUDS satisfied? Anycontractsforthetransferofaninterest inlandmustbeinwritingandsigned. DidIREGISTER myTITLE? Notwidelyusedforrealproperty,thisregistrationsystemallowsownerstoobtainacertificateoftitleas sufficientproofofownership anysubsequentbuyeronlyneedstoinspectcertificatetoproveownership. DidIRECORD myTITLE? Thefunctionofrecordingactsisto(1) givethe"purchaserforvalue"oflandawaytocheckifthetitleheis receivingisfreefrominconsistenciesofearliertransactions,and(2) ensurehistitleisgainspriority. WhatTYPE ofRECORDINGACT didIuse? Therearethreetypesofrecordingacts:purerace (thewinneroftheraceprevails),notice (asubsequent bonafidepurchaserwinsregardlessifherecords unlesshehasactual,constructive,orinquirynotice), andracenotice(asubsequentgoodfaithpurchaserwinsonlyifhehasnonoticeANDrecordsbeforethe priorinstrumentisrecorded). IsmyinterestevenRECORDABLE? Interestsgainedthroughadversepossession,easementsbyimplicationornecessity,shorttermleases,and contractsarenotrecordable. Doesthe SHELTERRULE apply? Undertheshelterrule,anygrantee(bypurchaseorgift)fromabonafidepurchaserisprotectedasabona fidepurchaser,eventhoughthegranteewouldnototherwisequalifyforthisstatus,withtheexceptionif thegranteeistheoriginalgrantor. DoIhaveaWILDTITLE? Adeedthatisrecorded,butisnotconnectedtothechainoftitleofthepropertyiscalledawilddeed;it cannotprovideconstructivenoticetosubsequentpurchasersofthepropertybecausetheycannotbe reasonablyexpectedtolocatethe deedusinggenerallyacceptedmethods(granteeandgrantorindexes).

DoIhavetosharethispropertywithsomeotherasshole?
IsthereaCONCURRENTOWNER? The3waystwoormorepeopleeachownpresentpossessoryinterestinthesamepropertyare:(1)joint tenancy (asingle,unifiedinterestinrealorpersonalpropertywhichincludestherighttosurvivorship);(2) tenancyincommon (aseparated,dividedinterestwhichdoesnothaverightofsurvivorship);and(3) tenancybytheentirety (whichonlyexistsbetweenhusbandandwife,whichincludessurvivorshipand "indestructibility"). AmIMARRIED? Undermodern"communityproperty"approach,anyincomeorpropertyfromincome(notgiftsor inheritance)acquiredduringthemarriageisconsideredforthebenefitofthecommunityandequally distributed.

Issomeassholetryingtotakeaway,walkthrough,orfuckupmyproperty(ordidhealready)?
DoIreallyneedthe ABSOLUTERIGHTto EXCLUDE? Societyneedstherighttoexcludeforeconomicdevelopment,privacy,personalautonomy,liberty,and security WasitaCRIMINAL act? Criminallawprovidesthe"backstop"topropertysopropertyownersdonothavetoresorttodangerous selfhelpinordertoenforcetheirrights. Didsomeasshole TRESPASS onmyLAND? Trespasstolandiscommittedwhenanindividualortheobjectofanindividualintentionallyenterstheland ofanotherwithoutalawfulexcuse apartywhoselandisentereduponmaysueevenifnoactualharm is done. Didhefuckupmy PERSONALPROPERTY? Trespasstochattelsisanintentionalinterferencewithapossessoryinterest absentconsentoftheowner. DidhefuckupmyINTERNETS? Anelectronicmessagecanbedeemedatrespasswherethemessageinterfereswiththetargetcomputers operation,aslongasaplaintiffcandemonstrateeitheractualhardwaredamageorimpairedfunctioning. HowdoIREMOVE theassholeFROMMYLAND? Injunctions,eviction,ejectments,andactionstoquitetitle areconcernedabout(1)vindicating the interestapersonhasinexclusivepossessionand(2) recovering saidpossessionofland(forexample againstadefaultingtenantoratrespasser),whodoesnothave(ornolongerhave)anyrighttoremain there.

 HowdoIgetaBUILDINGENCROACHMENT offmyland? Thereisnouniversalruleforbuildingencroachments,sometimesmandatoryinjunctions areissued, sometimescompensatorydamages(restitution) itdependsifthesituationcallsforusingapropertyrule versusaliabilityrule. DudeisafuckingNUISANCE,howdoImakehimSTFU? Nuisancerequiresa(1)substantial (injuryrequired),and(2)unreasonable (gravityofharmoutweighs utilityofactivitycausingharm),(3)nontrespassoryinvasion (intangiblethings)orinterferencein another'suseandenjoymentoftheirland. HowamIgoingtoGETMYSHITBACK? Replevin isusedtorecoverwrongfullytakenpersonalproperty. Whydon'tIjustuseSELFHELP? Apersoninpossessionofpropertycangenerallyusereasonableforcetopreventorterminateanunlawful entryorothertrespassuponlandoratrespassagainstortheunlawfulcarryingawayoftangibleproperty DidmyTRUSTEE screwup? Trusteeshaveadutytocarryouttheexpressterms ofthetrust,thedutytoprudentlyinvest (dowhatis goodfor)trustassets,thedutyofloyalty,thedutynottobeinaconflictofinterest position(i.e.toprofit), thegeneraldutytoadministerthetrustinthebestinterestofthebeneficiaries. WasmyBAILMENTfuckedup? Abailmentistherightfulpossessionofgoodsbyonewhoisnottheirowner;thebailee(personholding goods)isnotaninsurerforthegoodsbutisliableforlackofcaretovariousdegreesbasedonwhois benefitted andifthebailmentis voluntary orinvoluntary. AmIgettingDIVORCED? Themodernapproachtodivorceis"equitabledistribution",wherepropertyisdividedbythecourt accordingtofairness,notbasedonwhohastitle usuallyonlypropertyacquiredduringthemarriagefrom theearningsoftheparties,butsometimesincludes"futureassets"suchasaJ.D. CanIkickmyCOTENANT out? Regardlessoftheformofcotenancy,eachcotenanthastherighttooccupytheentirepremises,subject onlytothesamerightintheothercotenants,unlessthepartiesmakeanagreementtothecontrary. Thereisnorighttocollect andnodutytoaccount unlessheousts theothercotenantordepletes the land. IsmyCOOP orCONDO tryingtokickmeout? Courtswillenforcethecovenants,conditions,andrestrictionscontainedintherecordeddeclarationofa commoninterestdevelopmentunlessunreasonable. Waitaminute,istherealegitimatereasonorexcuseforthisasshole'strespass? WashistrespassaNECESSITY? Atrespassertopropertymayhaveaprivilegetoenteranother'slandwithoutconsentinordertoavoid seriousharm,butmustmyrestitutionforanydamageincurredhecausedwhiletrespassing. WasthereaCUSTOM tohuntonmyland? Atrespassermaybeexcusedifheentersthelandofanotherthatisunenclosedanduncultivated,forthe purposesof hunting. DidImakemylandaPUBLICACCOMMODATION? Whenpropertyownersopentheirpremisestothe generalpublic inpursuitoftheownpropertyinterests (profit),theycannotexcludepeopleunreasonably,especiallyinanarbitraryordiscriminatory manner towardsmembersofthegeneralpublicthatcomeupontheirproperty. DidILICENSE itout? Alicenseisapermissionsliptouseanother'slandforoneparticularpurposeonly,isnotassignable becauseitisnotreallyapropertyright,doesnotneedtomeetSoF,andcanberevokedatanytime. DidI(orapreviousowner)GRANT anEASEMENT, how,andwhatkind? Aneasementisaprivilegetothelimiteduseofthelandofanother,eitheraffirmative (toallowholderdo something),ornegative (topreventlandownerfromdoingsomething).Aneasementcanbeappurtenant oringross andcreatedin5ways(express,implication,necessity,prescription,andbyestoppel). WastheEASEMENT properlyTRANSFERRED tothenewasshole? Whenthetitleoftheserviant estateistransferred,theburden oftheeasementremainswiththeproperty. Aneasementappurtenant (onewherethebenefitappliestotheparticularlandonly)normallypasseswith thetransferofthedominantestate.Aneasementingross isnottransferable. IsheblockingmyLIGHT and AIR? Thereis nonegativeeasement fortherighttolightandair,oraclaimfornuisance againstsomeonewhois buildingontheirproperty. DidtheassholeABANDON the EASEMENT?

 Aneasementmaybeterminatedbyabandonmentiftheeasementholder (1)intendstoabandon and (2) takesactions manifestingthatintent,theeasementwillbeextinguished. DidI(orapreviousowner)GRANT aREALCOVENANT? Damagesmayberewardedforbreachofarealcovenant whichisacontractbetween2partiesthat, becauseitmeets3requirements([1] touch&concern land, [2] intent forburden/benefittorun,[3] privity),hastheadditionalqualitythatitis(1) bindingagainstonewholaterbuysthepromisor'sland, and/or(2) enforceablebyonewholaterbuysthepromisee'sland. SEEPRIVITYCHART DidI(orapreviousowner)GRANT anEQUITABLESERVITUDE? Similartoarealcovenant,anequitableservitudeisatypeofcourtenforcedinjunctionorspecific performanceagainstanassigneeoftheoriginalpromisor,whereprivityisnotrequired,buttheassignee musthavepriornotice (actualorconstructive). Isthegovernmenttheassholetryingtotakeawaymyproperty? DoesmylandfallunderthePUBLICTRUSTDOCTRINE? Ingeneral,iftheprimarypurposeofthelandistobenefitthepublicorthepublichasacquiredcustomary rights,theresourcesaretoopublictobeparceledouttoprivateownershipandstatescannotsurrenderor grantapublicresourcetoaprivateentity. TakingmyNAVIGABLE AIRSPACE? Inbalancingthepublicinterestofusingairspacefornavigationagainstalandowner'srights,alandowner (1) ownsonlysomuchoftheairspaceabovetheirpropertyastheymayreasonablyuseinconnectionwith theirenjoymentoftheunderlyingland,and(2) onlyforlegitimatepurposes. TakingmyNAVIGABLEWATERWAYS? Astateisresponsibleforprotectingthepublic'srighttousenavigablewaters,evenwhenthelandbelow thewaterisprivatelyowned,andthestatecannotrelinquishpowertoprivateparties. DidthegovernmentTAKE myland? The5thAmendmentstates:"norshallprivatepropertybetakenforpublicusewithoutjustcompensation", sothegovernmentmayuseit'seminentdomainpowertotakeprivatepropertyforpublicuseaslongas thereisjustcompensation. IsthereaPHYSICALOCCUPATION orDEPRIVATION ofmyuse? Apermanentphysicaloccupation isatakingperse becausetheownerisdeprivedofallhispropertyrights (theentirebundleofsticksisslicedinsteadofsimplytakingawayonestick),andarestrictionthat eliminatesalleconomicuse foralandownerisalsoaperse taking. AretheyclaimingNUISANCEABATEMENT? Itisnotatakingwhenthegovernmentusestheirpolicepowertoabatenuisances includingpreventing harm orstoppingthingsthatarenoxious tothepublic(butsomecourtsanalogy todefineanuisance, whilesomerequire actualnuisances underpreexistingprinciples). IsthecitydoingsomeREGULATION? Regulations forzoning,environmentalprotection,landmarkpreservation donotqualifyastakingsif(1) theysubstantiallyadvanceslegitimatestateinterests,and (2) donotgotoofarindestroyingprivate ownershipsrights. DidIget JUSTCOMPENSATION? Justcompensationforatakingisdeterminedat fairmarketvalue,assumingthehighestandbestusefor theproperty,notconsideringthegovernment'splanneduse orany assemblycosts. IsthegovernmenttakingforPUBLICUSE? Thegovernmentislimitedtotakingsforpublicuse,includingdevelopingeconomicplanswherethe(1) primarypurposeistobenefit thepublicand(2) theplanoriginated inthegovernment,(3) especiallyin caseswherethelandis blighted. HowdoIrentmypropertyout? WhattypeofLEASE isit? TherearefourtypesofestatesthatinvolvetheTLrelationship:(1) atenancyforyears,(2) aperiodic tenancy,(3) atenancyatwill,and(4) thetenancyatsufferance. DoestheSTATUTEOFFRAUDS apply? Anyleaseformorethan3yearsmustbeinwritingandsigned. DidIdeliveryACTUALPOSSESSION? English(majority)ruleisthatLhasobligationtodeliveractualpossession ofpropertytoT,andThasaright toterminatetheleaseandrecoverdamagesifthepriorTholdsover andtheLdoesnotoust him. WhataretheTENANT'SDUTIES tome? TheThasadutytopayrent(whichmostcourtstodayholdthisasadependantcovenant),dutytorestore,

andbehavereasonablyperthelease.IftheTmateriallybreaches,Lisusuallyentitledtodoso,either expresslybytermsoflease,orthroughcourtaction (summaryproceedingsanddamagesforholdovers), andperhapsnonviolentselfhelp. HowdoIKICKTENANTOUT andREPOSSESS myproperty? Alandlordmaylegallyrepossesspropertywithnoliabilityif(1)thelandlordhadalegalrightofpossession, and (2)thelandlordusedpeaceable means ofreclaimingpossession. DidICONSTRUCTIVELYEVICT mytenant? Constructiveevictionoccurswherethereisa(1) breachofduty byL,(2) thatcausessubstantial interferencewithaT'srighttoquietenjoyment,and(3) theTdemonstratestheuninhabitabilityby abandoning thepremiseswithinareasonabletimethereafter. WastherereallyaBREACH oftheCOVENANTOFQUITEENJOYMENT? IfLhimself,orsomeoneclaimingunderL,andsometimesothertenantsinviolationoftheir leases, interfereswithT'spossessionofuseofthepremises,thisisabreachofthecovenantofquiteenjoyment. OrdidIBREACH anIMPLIEDWARRANTYOFHABITABILITY? TodaymanystatesholdthatifLleasesaresidential premisetoT,healsomakesanimpliedwarranty that itisingoodenoughconditiontobelivedinandifLbreachesthiswarranty,Tmaywithholdrent oruse renttomakerepairs himself,aslongasTcanprovide evidence ofthebreach. WTFdoIdoAFTERT ABANDONS thepremises? IfaTabandonsanddoesn'tpayrent,Lcan(1) treatasandacceptsurrender,andsuefordifferenceinrent andFMV;(2) relet premisesforTandsurefordifferenceinrents;or(3) donothingandsueforallofrent unlessthereisa dutytomitigate. WasthisaCOMMERCIALLEASE? Mostcommercialleasestodayaretreatedascontractsinsteadofindependentcovenants;manycontracts defensesandremedies(consideration,dutytomitigate,etc)areappliedtocommercialleases. DidmytenantSUBLEASE hisrighttooccupy? AsubleaseisatransferbyTold ofless thanhisentireinterest,andTnew isnotliableforrenttoL. DidmytenantASSIGN hisrighttooccupy? AnassignmentisatransferbyTold ofhisentireinterestintheleasedpremises.Tnew becomesprimarily liabletoLandTold becomessecondarilyliable.Tnew isliableonlyforpromisesmadebyTold whose burden runswiththeland(touchandconcern),suchasburdentopayrent. DidIASSIGN myproperty? IfLassignshisrights,thenewLhasthe burdenandbenefits ofcovenantsthatrunwith(touchand concern)theland.

HowdoIgetridofthisproperty? CanIABANDON it? Toabandonproperty,aownermust(1)voluntarilyrelinquish allrights,title,claim,andpossession,(2) withtheintent ofterminationhisownership,but(3) withoutvestingittoanyotherpersonandwiththe intentionofnotreclaimingfurtherpossessionorenjoyment,orresumingownershipinthefuture. CanIDESTROY it? Ownersovereigntynormallyincludestherighttodestroypersonalproperty,butinsomecasesthestate maylimitwhatonecandowiththeirproperty suchasafterdeathatestatormaynotdestroyherproperty becauseitisaconditionthatisopposedtopublicpolicy. CanITRANSFER it? SEEFREEHOLDINTERESTSCHART CanICOMPLETELY RESTRICT FUTURE transfers? Acompleterestraint onalienation ofafeesimple isvoid,evenforalimitedtime,becausethisisagainst thepremisethataownerofafeesimplehasthesovereignrighttotransfertowhomeverhewants. IfIhaveaLIFEESTATE didIWASTE something? Alifetenantisnotallowedtotakesomeactionthatunreasonablyreducesthevalueofthereversionaryor reminderinterest eitherinpermissive waste(failuretorepairandupkeepproperty)orameliorative waste(anactthatincreasesthevalueofaninterest).

FINALFULLOUTLINE
WHATISPROPERTY?
Hasbeendefinedinvariousways astheproductofone'slabor(Locke),tothefoundationof capitalismandclassstruggle(Marx),butULTIMATELY: Propertylawisaboutrelationsamongpersonswithrespecttothings Resourcesoftheworldonwhichsocietydependsforsustenance,satisfactionitsneedsanddesires Howtorewardandencourageeffortsforproductiveuseofthoseresources? Propertyrightsconsistofwhatyoucangetthestatetobackyouupon: Howlawdefinespropertyinterests Howoneacquiresproperty Howpropertyrightscanbeshared Howoutsideparties'interestsaffecttherightsofOs Moderneconomicgrowthisaboutintangible propertyrightsin: Contracts Capital Intellectualassets By"propertyrights" wemean: Predictableandenforceableversionofwhatlawcalls"property"and"contract" Enforcementrulesmorefocusedonabroadrighttoexcludethanonspecificlist ofrightstouse By"privateordering" wemeantheabilityforprivatepeopleandfirmstomakedeals witheachotheras theychose,ratherthanasinstructedbythegovernment Ourgoalisnottodecreaseuse,buttocoordinateincreaseduse Propertyrulesforcespeopletotalkandrationalize Ourgoalisnottoprotectthewealthy,buttofightpovertyandimproveeconomyfor allpeople

ExamplesWhyGovernmentRegulationisBad 1. Banking U.S.depositorsandbanks Banksvs.debtors CompareMexico Nopropertyrights,almostnobankingsystem Around18,000mortgagesinentireMexico 2. SARBOX:UnintendedConsequences? Disclosurecanbegood Butmandatorydisclosuremaybesoonerous,thatit: Keepssomesmallcompaniesfrom"goingpublic" Encouragesothersalreadypublictobetaken"private"or offshore Distractsmanagementandtheboardfromcorporate strategy 3. HedgeFundRegulation SECrulethathedgefundmanagersmustregisterunderthe InvestmentAdvisorsAct(immediately overturnedbyDCCir.) Supposedtoprotectinvestors Onlyoptoutwasiffundhadatleasta2yearlockup windowduringwhichinvestorscouldnot withdraw Butthreatofwithdrawaliswhatgaveinvestorsinsmall fundsneededcomfortandcontrol Soonlylargefundswithestablishedreputationscould attractinvestors PropertyRightsinIPasKeystoInnovationandCompetition 1. Increaseinnovation: Notjustincentivestoinvent Getinventionsputtouse

 Byfacilitatingcoordinationamongcomplementaryusersofthe invention(investors,managers, marketers,laborers,ownersofotherinventions,etc) TheDpartofR&D 2. Helpnewcompaniescompete: Antimonopolyweapons VitalslingshotforDavidagainstGoliath PropertyRightstoEncourageIndividualIncentives Peoplemakechoices(tradeoffs)inviewofwhattheyperceivetobetheiragendas, resources,andthe incentivestheyface(seeBecker1992Nobelextendingrationalchoicetheorytobroadrangeofhuman behaviors) Lesson:identifyingaparticularincentivedoesnotalwayspredictactualresulting behavior need toknowwhatotherincentivesareoperatingandhow Rentseekingandrentdissipation Rentisgainfromdoinganactivityandsometimesprivateandpublicrentscandiverge Lesson:potentialfornetoverinvestmentorimproperinvestmentinracetowardsa commonprize Informationcosts Makingdecisionsrequiresagreatdealofinformation Searchcosts,andthefixesofreputation,andadvertising Lesson:lookforlowestcostprovider,evaluator Behavioralism Lesson:weareonlyboundedlyrational,burdenedbycognitivebiases,heuristics, groupthink,fashion

Conclusion Theseseeminglydiversefields(contracts,property,IP,corporate,finance,etc) sharebasicthemesin common Economicsuccessisaboutprivateordering Privateorderingbenefitsfrom: Lotsofprivateflexibilitybackedupbyfirmgovernmentenforcement Littleofflexiblegovernmentenforcementorfirmmandate Somelegalapproachesmay: Frustrategoodcoordination Facilitatebadcoordination PropertyRightsatTheirBest Attributes: Predictableenforcement Goodflexibility canbetradedandlicensed; bundledanddivided Usersdealwithprivateindividuals Effects: Easyformarketactorstouse Stimulatecompetition,innovation,economic growth,andjobs PropertyRightsatTheirWorst Attributes: Unpredictableenforcement createdorchangedat discretionofgovernment Badflexibility fixedownerandfixedcontours Usersdealwithgovernment Effects: Easyforpoliticalactorstouse(regulatorsand powerfulpoliticalconstituents) Concentratewealthandpower

THERIGHTTOEXCLUDE
TRESPASSVS.NUISANCE RULERighttoExclude: Societyneedstherighttoexcludeforeconomicdevelopment,privacy,personal autonomy,liberty,safety,andsecurity RULETrespasstoLand: Anyintentionalintrusionthatdeprivesanotherofpossessionofland,evenif onlytemporarily "Strictliability"intorts anintentionaltrespassistheactofmovingonthelandofanother, doesn'tmatteriftherearedamages Sometimesnecessityisrecognizedasadefensetoanactionfortrespass EXAMPLE: Jacquev.SteenbergHomes,Inc. (punitivedamageawardedevenwhenonlynominal damages noactualdamages becauseimportanttodeterphysicalinvasionsofland,doesn't matterthetrailerdidn'tdoanydamagetoJacque'sland) Economicdevelopment peopleprobablywouldntinvestintheirlandifsomeoneelse couldcomeinanddamageit Propertyrightalsoprotectprivacy,autonomy,libertyinterests Invasionofpropertyregardedasaninvasionofpersonalspaceorpersonalwrong Infringementofalegalrightisalwaysanactualharm,whethermeasurableornot Controllingyourphysicalspacegivesyouextraphysicalsafetyandsecurity Heavypunishment todeterselfhelp orretaliation ifsomeonewantsitbadenough,they canpaythehighprice NOTanabsoluterighttoexclude: Eminentdomain thestatecantrumpeverything Easements righttocrosssomeoneelse'sproperty Necessity iflifeorlimbisatstake,mayhaveaprivilegeofnecessity Discriminationinpublicaccommodations cantexcludeonprohibitedgroundsifyouare admittinganymembersofthepublicontoland Freespeechrights onprivateproperty i.e.handingoutpamphletssometimesallowedunder1stAmendment Invitation willsubjectyoutomanymoreexceptions EXAMPLE: Hinmanv.PacificTransport (notrespassbyplanesunderadcoelum rule (whoeverownsthesoil,ownstheskyanddepths)becauseowneroflandownsasmuchof thespaceabovehimasheuses,butonlysolongasheusesit andnouseinthiscase) Needtoexercisedominioninordertoowntheairspace Canexercisedominionbybuildingorengaginginactivitiesonthesurfacethat wouldusetheairspace Alsowouldresultinanabsurditytoregulatewhoownsairspace RULENuisance: Asubstantial(mustbeinjuryandunreasonable)nontrespassoryinvasionor interferenceinanother'suseandenjoymentofland Substantial=mustbeinjuryandunreasonable Nontrespassory =samethingcan'tbeanuisanceandatrespass(nuisanceforintangible invasions) EXAMPLE: Adamsv.ClevelandCliffsIronCo. (nuisance,nottrespass,whendealingwith intangibleobjectssuchasairbornedamagecausedbyparticulates,noise,orvibrations) Majorityofcourtssaysdustislikefumes,somethingthatispartoftheenvironment soactionableonlyinnuisance,ifatall Somecourtsputdustintrespasscategory,butalsorequireharm Courtheredoesn'twanttosoftenthehardedgeoftrespasslawbyrequiringharm/ injuryincertaincases,soinsteadtreatsdustasanuisance Unreasonable=gravityoftheharmoutweighsutilityoftheactivitycausingharm EXAMPLE: Hendricksv.Stalnaker (waterwellisnotanunreasonableuseoflandbecausehe hadnootheroptions,notinvasivelikeseptictankor"spitewall" thereforeisnotaprivate nuisance)

 Racingproblem rentdissipation:peoplewouldallpay$10toget$10isoverinvesting AbsoluterighttobefreefromphysicalinvasionsOKbutnonphysicalinvasionsare morefactspecificinprovingharm,damages Grantingabsoluterighttobefreefromnuisancewouldstopalotofsocially productiveactivity EXCLUSION&GOVERNANCE 2differentstrategiesforresolvingdisputesabouthowresourcesareused: RULEExclusion: ownerisgatekeeperoftheresourceanddecideshowtouse Landthathasmultiplepotentialuses,O'scandecidewhatismostvaluable,i.e.Jacquev. SteenbergHomes,Inc. Ownerhasabsoluterighttodecidehowpropertywillbeusedbest RULEGovernance: focusesonparticularusesofresources,andpermitsorprohibitsuseswithout regardtotheotherattributesoftheresource Landthathasheightenedsignificance,i.e.Hendricksv.Stalnaker Judgesdeterminehowpropertywillbeusedbest PROPERTYRULESVS.LIABILITYRULES PropertyRULE: rightcan'tbetakenawayunlessyougiveconsent(exceptthrueminentdomain) Decisioniswhohadinitialentitlement butdoesnotaddressvalue Propertyruleencouragespeopletotalkit/courtswontenforce LiabilityRULE: rightcanbetakenawayatapricesetbythecourt Transfer/destructionofpropertyallowedbasedonvaluesetbythecourtinsteadofbythe partiesthemselves Notasgoodasifthepeoplethoughtitoutthemselves? VINDICATINGPROPERTYRIGHTS INJUNCTIONSANDRESTITUTION Thecoreattributeofpropertyisthatitcannotbetakenwithoutconsent;theactionof restitution canbeviewedasawayforvindicatingrightsinproperty RULEforInjunctions: Equitynotusedtoenjoinameretrespasswithexceptions Wheretheinjuryis irreparable,or Wherefullandadequatereliefcan'tbegrantedatlaw,or Topreventrepetitionofsimilaraction /multiplicityofsuits EXAMPLE: Bakerv.HowardCountyHunt (injunctionjustifiedagainstcontinuingorrepeated trespassesinpursuanceofasinglepurpose thehuntersweren'tgoingtostoptrespassing) RULEBuildingEncroachments: Nouniversalruleastoinjunctionsforencroachment,sometimes compensatorydamages(restitution),sometimesmandatoryinjunction(removeurshit) EXAMPLES: Pilev.Pedrick (doesn'tmatterthefoundationwasbuiltonly1"onaccident absolute propertyrightmeansthedefendantsmustteardownthebuildingorpaydamages) Plaintiffchoosesinjunction isthisaproblem?(maywanttopreventdefendantsfrom operatingthefactory) Opportunismisthecost,ifyouknowsomebodyhasinvestedalotinyou,youcantake advantage(maybeevenwaituntilthefactoryisbuiltbeforesuingoutofspite GoldenPress,Inc.v.Rylands (mandatoryinjunctiondeniedbecausedefendant's encroachmentwasunintentionalandslight,plaintiff'susenotaffected(damagesmalland compensable),highcostofremovalwouldcausehardshiporevenunconscionable) Supportsequityruleagainstinjunctionifpersonseekingithasuncleanhands Doctrineoflaches youcan'tgetaninjunctionifyouwaittoolongandthetrespassing partyreliesonyounotenforcingthepropertyright Coaseananalysis Pile ifcostofremovalgreatlyexceedsharmfromencroachment,partieswill bargainsoentitlementgoestodef,andthewallstaysup Efficientresultwouldbefordeftooffercompensationuptotheamountof

tearingdownthewall Probablywonthappeninthiscaseb/cplaintiffsdontwantstructureatall GoldenPress plaintiffhastosellentitlementforatrivialamounttomoneysetby thecourt Ifhavingwalltakendownworthmoretoplaintiffsthanhavingitfordefs,ideally wouldpayenoughtogetittakendown Mightnothappenifdefsdonthaveenoughmoney RULERestitution: (1)anunjustenrichmentofthedefendant,(2)attheexpenseoftheplaintiff,(3) undercircumstancethatareunjust EXAMPLE: ProducersLumber&SupplyCo.v.OlneyBuildingCo. (buildingonanother'sproperty couldnotbedestroyedbythebuilder thereweremanyoptionstheplaintifflandownercould havetaking,butissueishisrighttochoosewastakingawaybythedefendant,doesn'tmatterthe defendantwasaninnocentandaccidentaltrespasser) Alsodestroyingthehousewaswaste donewithuncleanhands

ORIGINALACQUISITIONOFPROPERTY
BYCAPTURE/OCCUPANCY(FIRSTPOSSESSION) RULEPossession: thecontrollingorholdingofpersonalproperty,withorwithoutaclaimofownership: (1)anintenttopossessonpartofthepossessor,and(2)heractualcontrollingorholdingtheproperty Firstintime,firstinright Constructivepossessionhasthesameeffectinlawasactualpossessionbutisnotactual possession RULE CaptureofWildAnimals: actualpossessionofawildanimalwithitsfreedomrestrictedgives propertyrights EXAMPLES: Piersonv.Post (disputewasn'taboutthefox,itwasvalueofthehunt,buthuntermusthave possessionbeforegettingpropertyrights) Ruleofcapturedesignedtominimizedisputesbecauseunlikelythatmorethanone personcanclaimsuchpossessionorcapture Landownersrationesoliaredeemedtohaveconstructivepossession ofwildanimals ontheirproperty,evenifatrespassercapturedtheanimalbyfirstpossession Keeblev.Hickeringill (DmaliciouslyinterferedwithP'slawfuluseofhisland,thedamages notrewardedforlostducks forDinterferingwithP'suseofhislandforpleasureorprofit) Mustshowmaliciousintentisbadforsociety,notthatitonlycreatescompetition Ghenv.Rich (whalergrantedpossessionofwhalebecausewhalingcustom saysthewhale killerownsit,notthepersonwhofindsit) Courtsayswhalingwouldstopifpeopledidn'thaveassurancesthatthefruitsofhis laborcouldbeappropriatedbyanychancefinder Economicpolicyconcernswithrewardingandencouragingproductivity,and minimizingfreeriders Minimizingdisputes,maintainingsocialorder RuleofcaptureisbasedonopenaccesstotheCommons Openaccess =accessisopentoallmembersofaparticularcommunity,butnottoall outsiders Ruleofcaptureestablishesownershipofaresourceonceitiswithdrawn(i.e.fisherowns fishhecatchesinanopenaccessfishery) Problemswithfreeriders depletingfrominvestmentratherthantryingtoimproveit Individualsonlythinkoftheirslightgain,notthenetlosstosociety Sointernalarrangementsorcontrolbyaprivateowner/thestatenecessarytoregulate openaccessresources "COMMONS"DEFINITIONS: TragedyoftheCommons noonehastherighttoexcludeanyoneelse,andthuseveryonewill

exercisehisrightofaccess TragedyoftheAnticommons toomanyhavetherighttoexclude,sonooneisabletousethe resource ProblemoftheSemicommons whenagivenresourceissubjecttoprivateexclusionrightsin someuses,butopenaccessforotherpurposes peopleincentivizedtofavortheirpartofthe semicommonsandtrashtheotherparts BYCREATION RULECreation: thefirsttocreatesomenewornovelthingisrewardedwitharightexcludeothersfrom usingit Mainreasonforcreatingpropertyrightsininfoistoprovideincentivesforproducingmoreofit Needtoprotectsothereisincentivetocreate,butnotoverprotectwhichwouldlimitcompetition andraiseprices EXAMPLES: HotNews InternationalNewsServicev.AssociatedPress (courtfindsquasipropertyright/ unfaircompetitionbecausethisisanunauthorizedinterferencew/AP'slegitimatebusiness preciselyatthepointwhereprofitistobereaped) Propertyrightnotagainstthewholeworld,justthecompetitorbecausethegains/ profitsareatissue,notthepropertyitself Patents TrentonIndustriesv.A.E.PetersonManufacturingCo. (nopatentprotection becauseideanotinventiveenoughsonoinfringement) Wasproductofmechanicalskill,notexerciseofinventivefaculty Courtdoesallowprotectiontoalimiteddegreebylawofunjustenrichment Somethingofaquasiproperty/contractright apartyisliableforuseand mustpaycompensationifheappropriatesanideaandusesitforhimself Dependsoniftherehasbeenunjustenrichment patentabilityofideairrelevant BYACCESSION&ADCOELUM RULEAccession: Ownershipgivenwhensomeonemistakenly takesupaphysicalobjectthatbelongsto someoneelseandtransformsitthroughhislaborintoafundamentallydifferentobject Accessionappearstoinvolvetheperceptionthatonethingbearssuchaprominentrelationshipto anotherthingthatpossessionoftheoneisalsopossessionoftheother EXAMPLES: Wetherbeev.Green (Wetherbee'strespasswasn'twillful hethoughthehadpermission, andheconvertedthewoodintosomethingmuchmorevaluablesothehoopsbelongedto himnow) Ultimatelycomesdowntowhethertrespasswaswillfulornot Ifdeliberately takesomethingandconvertit,mustgivenewthingbackto originalO evenifvaluehaschangedsignificantlybyadditionoflaborormoney Ifwrongisinvoluntary,originalOcan'treclaimifthepropertyhasbeen transformedintosomethingsubstantiallydifferent Enforcingoriginalownershipwithliabilityright (compensationforvalue ofwhatyougaveuporlost)ratherthanpropertyright Thegood/badfaithconsiderationdeterstheft Butcouldntargumentbemadethatthevalueofwhatyoulostwas thevalueofittransformed,ratherthantheitsactualvaluewhen taken? Wanttoencouragingmanufacturing Courtsaysdegreeoftransformationnotaboutphysicalchanges, butabouthowmuchvalueisadded RULEFixtures: athingwhichwasoriginallyamovablechattel,isbyreasonofits annexationto, applicationand associationinusewithland,andintentofthepartymakingannexation regardedas partoftheland EXAMPLE: Strainv.Green (theseller'ssecretintenttokeepthoseitemsdoesnotmeantheyare

fixtures;intentisinferredbythecircumstances) RULEAdCoelum: "towhomeverthesoilbelongs,heownsalsototheskyandthedepths" Appliestoresourcesdiscoveredbeneaththesurface,i.e.minerals,oil,gasdeposits,orcaves EXAMPLE: Edwardsv.Sims (acourtcanorderatrespassontosomeone'spropertywhennecessary todetermineifthatpersonishimselftrespassing ifthecavewaspartlyunderLee'sproperty, Edwardswouldbecommittingaseriesofcontinuingtrespassesunderadcoelum) RULEAccretion: Gradualchangeinbanksborderingrunningwater;boundaryremainsatthecenterof thenewstream,soowner'sareamayvary,Nebraskav.Iowa RULEAvulsion: suddenchangeofthebanksofastreamsuchaswhenariverformsanewcourseand destroysorcreatesnewbanks;boundaryremainsasitwasinthecenteroftheoldchannel RULEAdversePossession: ifyouenterlandwhich,actlikeyouhaveaclaimofright,andremainthere foralongenoughperiodoftime,youcantaketitleoftheland,haverighttoexcludeeventheoriginal owner;5 requirements: 1. Actualpossession givetrueownernoticeandstartsSoL 2. Openandnotorious givecommunitynoticebybuildings,fences,crops,etc 3. Exclusive 4. Hostileoradverse 5. Continuous Evenifaownerhassuperiortitle,shemaylosepossessioniftheSoLforchallengingtheoriginal unlawfulentryexpires Adversepossessor(AP)getsanewtitleafterSoLexpires(usually1040yrs) Ifthereisachainofvalidconsensualtransfers,currentAPcancountthetimeofothersin thechainoftitletomeetstatuteoflimitations Thelowesttransactioncostsolutionistoletthepersonusetheland(consent) ifyouletthem usetheland,itisnot"adverse"possession EXAMPLES: LesseeofEwingv.Burnet (BurnetprobablyentitledtoAPeventhoughhedidn'tactuallylive ontheproperty;livedacrossstreetandsoldrightstograveltosomewhilerefusingto others,thuspossessionisactual&continuous, andoutsideworldrecognizesyouasO) Carpenterv.Ruperto (Dsholdrecordtitletoland,Pusedthelandfor25yrs butnoAP because possessionofthepropertywasdoneinbadfaithbyP) Butmostjurisdictionsdon'tcareaboutgoodfaith Howardv.Kunto (everydeedintheneighborhoodwasoneoff,APestablishedeventhough theyonlyusedthepropertyasasummerhouse continuousoccupancy dependsonthe circumstances) Privity isestablishedwheresuccessivepurchasersreceivedsamemistakendeedand tacking allowedifprivityexists Policyandpurposebehindadversepossession Designedtoprotectrelianceinterest Lossaversion/theendowmenteffect wouldbeworseforAPtolosewhathe essentiallyhasthanfortitleownertogainsomethingheessentiallydoesn'thave "Efficientbreach",makesitsoaplaintiffdoesn'ttryto"buy"alawsuit Wewantlandputtoitsbestuse,discourageabsentTOs("yousnooze,youlose") Getsridofgatekeeperswhowon'tdotheirjobinfavorofgatekeeperswhowill BYFIND&DISCOVERY Afinderoflostpropertyisapersonwho(1)takescontrol ofthelostpropertyand(2) hastheintenttomaintainpossession oftheproperty RULEGeneralFinder'sRights: afinderoflostpropertyhasgreaterrightstothefoundpropertythanthe wholeworld,excepttherightfulowner,apriororrightfulpossessor,orapersonholdingthroughthe rightfulownerorrightfulpossessor EXAMPLE:Eadsv.Brazelton (nopossessionwhendudejustmarkedtheship,needactualtaking withhisintenttopossess;certaindegreeofduediligencerequiredinfirstpossessionclaims)

BYFIND SEQUENTIALPOSSESSION RULESequentialPossession: finder(sequentialpossessor)hastitlegoodagainstalltheworldexceptthe original(rightful)Oorapriorpossessor Firstpossession=usuallyresolvedbasedonactualpossession Butsometimesactualpossessionisn'tnecessary i.e.constructivepossession Andsometimesitdoesn'tcount i.e.abandonment Presentpossessiongivestitleagainstalltheworldexceptpriorpossessorsorsuccessorsintitle Sequentialpossessionrejectsjustertii(3rdpartyrights)defense (unlessyoureceivedtitle fromthatparty) Allofthesehyposarereplevin cases suitsforpossession,notmoneydamages Thereforeifplaintiffwins,nooneelsecansueoriginaldef Ifplaintiffsuingformoneyandwins,someoneelsecouldsuebothplaintiffandoriginaldef Allofthesehyposignorethepassageoftime Dealtw/underadversepossession Allofthesehyposignorewherethethingisfound/ownerofplacewherethingisfound Resolvingallofthesesituationsbylookingatwhohaditfirst EXAMPLES: Armoryv.Delamirie (F v.Th) Afindsring;BstealsitfromA;AsuesB.AwinsbecausehehasgreaterrightsthanB Wanttodiscouragetheft,protectsocietyfromthieves,andprotectOswhocant provetheyareOs,goodvs.badpeople Trueownerlikelytofindthe1stfinder Clarkv.Maloney (F v.F) Afindsringbutlosesit.Bfindsit.AsuesB.AwinsbecauseAhaditfirst,andwithout abandoningorsellingit,Ahassuperiortitle Andersonv.Gouldberg (Th v.Th) BtookringfromA;CtookringfromB;BsuesC.Doesn'tmatterthatCcanproveAhasajus tertii (3rdparty)claim,it'sirrelevanttothedisputebetweenBandC Ifwedon'tgiveringtoB,weencouragemorethievery (Th v.F) Afindsring.Bstealsitandlosesit.Cfindsit.BsuesC.MostlikelyBwinseventhoughhe isathiefbecausejustertiiclaimagain notrelevantbetweenBandC (F v.F) Afindsrock,looksatitbutthendropsit;Bfindssamerock,seesitisvaluableandtakesit;A suesB.Bhasburden ofprovingAabandonedit,whichmeansprovingintenttoabandon difficulttodo (F/S v.B) Afindsbike,sellsittoB;AsuesBsayinghehaditfirst.ObviouslyAgaveuppossession (S v.Th) Ahadbike,soldittoB;Cstealsit;AsuesC.CwillclaimAgaveuppossessionofbike Butwhatabouttherulethat3rd partyrightsdon'tmatter(justerti) whycanCuse granttoBtowipeoutpriorpossession? (B v.F) AleavesBanotesayinghecanhaveAsbike,beforeBgetsthere,Cseesbikeandtakesit;B suesC.Cmightseemtohave1stpossession,butbecauseof consensualtransfer,Bwasin priorconstructivepossession Landtransferoftenhappenawayfromland,butwedon'tallowa3rd partytoclaimthe landjustbecausetheygottoitfirst Sweep findsjewel,givesittoapprenticewhogivesittojeweler Sweepwinsb/cnotransferofpossession,onlyabailment custodytransferredbuttitlenot transferred Agency apprenticetookthejewelonbehalfofhisemployer(jeweler) soapprentice's priorpossessionclaimcountsforjeweler

PUTTINGITALLTOGETHER COMPETINGPRINCIPLESOFACQUISITION Competingprinciplesofacquisitioncasesturnonwhichoftworivalclaimsof possessionthecourtfindsmorecompellingingivencircumstancesandcontext GENERALRULEisfinderwins,butLOprevailsincertainexceptions: Whenthethingismislaid Whenfinderisatrespasser/dishonest Maybewhenfinderisagentofsomebodyelse WhenLOisinoronhisland(activepossessionofland) WhenLOknewthethingwasthere(constructivepossession) IfyoudeliberatelyputsomethingdowninLO'shome(similartobailment) RULELandownersvs.Finder/Trespasser: LOhasconstructivepriorpossessionofthingsfoundonhis landasagainsttrespassers EXAMPLE: Fisherv.Steward (plaintiffsweretrespasserswhohadnopropertyrightstothelandor thetree,thebees,orhoneydoesn'tmattertheymarkedit,givingthemrightswouldinfringeon theLO'srighttoexclude) ExtensionofadcoelumbecausethebeesandhoneyinDstreeskindoflikeunderground mineralsbelongingtotheownerofthesoil UScourtsverysympathetictothenotionthatownershipofbeesgoesw/ownershipofthe land,perhapsbecauseitcannotbemovedoffland,alittlelesssympathetictowildanimals RULELandownervs.Finder/Occupant: finderoflostarticles,evenwhentheyarefoundonproperty,in building,orwithpersonaleffectsofthirdpersons,becomesOagainstalltheworldexceptthetrueO EXAMPLES: Goddardv.Winchell (plaintiffownedland,leasedittoE;aerolitefellontolandandwasdug upandsoldbyEtodefendant plaintiffwinsbecausethegeneraloccupancyruledoesnot applybecauseaerolitewasnotlostorabandoned,itwaspartoftheearth,thussimilarto adcoelum Samewithgainsorlossesbyaccretion,newdepositsbecomethepropertyoftheO Hannahv.Peel (RARECASE finder/occupantisownerofbroochbecausebroochwaslost forconsiderabletime,asopposedtoaccidentallymisplaced) Finderreportedtopolice,thencamebacktoreclaimwhennooneelsehad (reinforcedthattrueOwasn'tcomingback) CourtimpliesthatLOmighthaveasuperiorclaimagainstadishonestfinder LOhadneveractivelypossessedthehouse ImpliesthatifLOwaslivingathomeatthetime,wouldhavewon LOhadnoknowledgeofthebrooch sonotevenconstructivepossession Bridgesv.Hawkesworth (finderofmoneyinashopwinsagainsttheshopowner,because unlikeahomeowner,theshopownerwasnotexpectedtohaveexclusivecontrolover everythingintheshop) RULETreasureTrove: finderisawardedtitletogettreasurebackintocirculation policyoverridesthe generalrule(alsoassumingillegalityonpartofLO)

PROPERTY&PERSONHOOD
GeneralRULEHumanBody:Noonecanownanotherpersonbecauseinalienableselfownership EXAMPLES: Newmanv.Sathyavaglswaran (nextofkinhaveapropertyrightinthebodypartsoftheir deceasedrelatives forthepurposesof"cannotbedeprivedofpropertywithoutdue process") Righttoprotectthedignityofthehumanbody,righttotransferbodypartsorrefuse toallowtheirtransfer(righttowithholdconsent)arepropertyrights Thisbundleofsticksqualifiesas"property"fordueprocesspurposesandthestate cannotredefinewhatisproperty Moorev.RegentsoftheUniversityofCalifornia (spleencellsarenotpropertysoconversion claimisnotvalid liabilitybasedonfiduciaryduty/informedconsenttheoriessufficiently

protectspatient'srights) Becausesotiedupwithpersonhood,bodypartsarepersonal,notfungible,property Chillingeffectonmedresearch resemblesanticommonsproblem toomanypeople havevetopower,sosocialresourcesareunderexploited JudgeArabian'sconcurrencesayspeopleshouldnotbeabletoselltheirbodyparts duetoindignityofsuchamarket Butdissentsaysthismarketalreadyexistsalready(sperm,plasma,ovaries)and nowthecreatorofthebodypartgetsnosayinwhereitgoes/cutinitsvalue Moore comparedtoNewman CouldlackofinformedconsentberecharacterizedasaDPclaim? Newman mightnotapplytolivingpersons Moore turnspartlyonthenotionofvoluntaryabandonmentneitherthe deceasednorherparentsconsenttothetakinginNewman "Property"rightunderDPCisnotthesameas"property"underconversionlaw CONCLUSION isthat"property"mustbedefinedbyreferencetoitssurroundingsandits consequences Hechtv.SuperiorCourt (spermcountsasproperty;"atthetimeofhisdeath,decedenthad aninterest,inthenatureofownership,totheextentthathehaddecisionmakingauthority astotheuseofhisspermforreproduction") LIMITSONOWNABILITYANDALIENABILITY Radin personhoodtheory Twotypesofproperty: Fungible usedforachievingothergoals(i.e.money) Personal haveaconnectionw/theproperty,painfultolose(i.e.weddingring) Characterizationofpropertybecomesdifficultwhendealingw/thingsthatareintimately connectedtopersonhood leadstoasplinteringofpropertyrights MightprovidesupportforArabian weshouldprotectaninterestthatshouldn'tbe commoditized Demsetz explanationofprivatepropertyrightsineconomicterms Courtsshouldrecognizenewpropertyrightswhenbenefitsofinternalizingthecosts/benefitsof exploitationoutweighthecostsofrecognizingthenewpropertyrights Tragedyofthecommons,thelawgivespeoplereassurancethattheywillnotloseoutiftheywait tilltomorrow Getafatterbeaver,atallertree,ariperfruit Oncemedicaladvancesmadecellsvaluable,questionbecomesdothegainsofrecognizing patient'spropertyrightoutweighthecostsofdoingso? Majoritysaysno costswouldbegreat

PUBLICRIGHTS
RULEPublicRights: oftheprimarypurposeofthelandistobenefitthepublic,theresourcesaretoo publictobeparceledouttoprivateownership NavigationalServitude =publichasarightofnavigationtonavigableairspaceandnavigablewaters Mustremainaccessibleequallytoallmembersofthecommunity NAVIGABLEAIRSPACE RULENavigableAirspace: "flightsoverprivatelandarenotataking,unlesstheyaresolowandso frequentastobeadirectandimmediateinterferencewiththeenjoymentanduseoftheland" EXAMPLE: UnitedStatesv.Causby (lowflyingmilitaryairplanescausingchickenstonotlayeggsqualifies asatakingbecausetherewasdirectinjurytoCausby)

NAVIGABLEWATERS PublicTrustDoctrine: stateresponsibleforprotectingthepublic'srighttousenavigablewaters,even whenthelandbelowthewaterisprivatelyowned;statecannotrelinquishpowertoprivateparties EXAMPLE: IllinoisCentralRRv.Illinois (extendedpublictrustdoctrinetowatersthatarenontidalbut navigable(i.e.privatelyownedfishingstreamsbecameverydifficulttoestablish) PUBLICTRUSTSANDCUSTOMARYRIGHTS RULEPublicTrusts: Becriticalofattemptstosurrenderapublicresourcetoprivateentity Publictrustisviolatedwhenprimarypurposeofleg.grantistobenefitaprivateinterest Anyattemptbystatetorelinquishitspoweroverapublicresourceshouldbeinvalidated EXAMPLES: LakeMichiganFederationv.USArmyCorpsofEngineers (primarypurposeofpubliclandis tobenefitpublic;cannotgrantpubliclandtoprivateuniversityevenifthereareincidental benefitstothepublic mainpurposewasnewathleticbuilding,notthepublicpathsWould includepublicpathsandareasaswellasprivateathleticfacilities(towhichpublicwould haveaccesssubjecttoLoyola'srightofownership) StateofOregonexrel.Thornton (PrivateO'stitleincludeddrysandbeach butpublichad historicallyuseditthusacquiredaneasement,sostatehasanequitablerighttoprotect public'senjoyment) CustomaryRightsDoctrine Blackstone's7FactorTest: a. Longuse/Exercisedwithoutinterruption/Peaceableuse,freefromdispute/Reasonableuse/ Certainty/Obligatoryrecognitionofcustom/Can'tbeinconsistentwithorrepugnanttoother laws I.e.courtsayspublicacquiredaneasement soexceptiontogeneraltrespasslaw,not repugnanttoit The3ApproachestoTreatingtheCommons(PublicAreas&Rights) a. PublicTrust appliedinIllinoisCentralRRv.Illinois Criticsofpublictrust: Inherentlyunjust anddisruptivedestructionofprivatepropertyrights Ifthepublicwantsthelandssobad,theyshouldhavetopurchase themfromthe privateowner Uncertainty aboutpropertyrightsinvitesconflictsandsquandersresources high transactioncosts Whoshouldmanagetheoceanortheair LookatthebigislandofwasteinthePacificOcean nobodyownsitbut everybodysuffersfromit Sometimesgovernmentstepsinwhenthereisamarketfailure i.e.monopoly Sometimesgovernmentmustbeamangerwhenindividualstakesaretoosmall toexpresstheirpreferences economiesofscale Traditionally,only2pointsofview completelygovernmentorprivateowned Butwhatabouttollroads thatareprivatelyowned,opentoallmembersofthepublic, andtheownercouldonlychargetollsnotwhatthemarketcouldbear,butonly enoughtoreimbursehisexpenses? Well,whatfucking incentive doeshehavetomanageitproperly?? b. Prescriptive discussedinStateofOregonexrel.Thornton Argumentagainstprescriptions what'swrongwithholdouts? Privateownersshouldbeabletobenefitfromtheirproperty Ifit'sworthenough,themarketwilltakecareoftheproblem Havetheholdoutpersonkilled ifit'sthatbigofadeal rational? c. CustomaryRights StateofOregonexrel.Thornton

PROTECTINGRIGHTTOEXCLUDE
CRIMINALLAWSPROTECTINGREALPROPERTY Criminallawprovidesextensiveprotectiontoproperty,i.e.larceny Providesthe"backstop"ofownershiprightsthatiscriticaltomaintainingasystemofprivate property PropertyOswouldbeoverwhelmedifhadtoenforcetheirownrights Oswouldoftenresorttoselfhelp RULELarceny: Atrespassory/takingandasportation/ofthepersonalproperty/ofanother/withthe intenttodeprivehimofit/permanently(orforalongperiodoftime) EXAMPLE:Peoplev.Olivo (doesn'tmatterashoplifterwasapprehended beforeleavingthestore today'sdefinitionof"takingfrompossession"simplymeansacustomerwhocrossesthelinebetween thelimitedrightshehastodealwithmerchandiseandthestoreowner'spropertyright) Justconcealingwithsuspiciousactivityisenoughtoshowintentsufficientforaprimafaciecase CIVILACTIONSPROTECTINGPROPERTY RealProperty RULETrespass: usedtovindicatetheinterestthatapersoninactualpossessionhasin exclusivepossessionofland(i.e.tenantv.squatter) EXAMPLE: Statev.Shack (notrespasswhenmedical/legalworkerswentontofarmto speaktomigrantworkersbecausethemoreyouopenyourpropertytoothers (particularlyforeconomicpurposes) themoreyoubecomesubjecttothelegally recognizedrightsandinterestsofthoseothers) Employermayregulateaccessbutcannotdepriveworkersofaccessto thingstheyneed i.e. privacy,orinterferew/hisrightsoflifeand association Createsdistinction:thereis(1)privatepropertyand(2)privateproperty thatisn'tsoprivatebecauseyouallowothersonforyourowneconomic gain RULEEjectment: usedtovindicatetheinterestofapersonwhohastitletolandagainsta personwrongfullyinpossession(i.e.landlordv.tenant) RULENuisance: protectstheinterestinuseandenjoymentofland PersonalProperty Trespassd.b.a.:appliestotheforciblecarryingoff(asportation)ofplaintiffsgoods Notreallyusedanymore Detinue:basedontheunlawfuldetentionofgoods Notreallyusedanymore Trover:usedtoallegethatdefhadwrongfullyconvertedplaintiffsgoodstohisownuse Eventuallysupplantedbytortofconversion RULEReplevin: usedforrecoveryofwrongfullytakingpersonalproperty RULETrespasstoChattels: appliedwhentherehadbeennoasportationofpersonal property,butdefhadinjuredorinterferedw/propertywhileitremaininplaintiffs possessioninsomemannerfallingshortofconversion EXAMPLE: IntelCorp.v.Hamidi (NotrespasstochattelsbecauseIntelcannotshow anyharmdonetothecomputersystem) Invasioninsufficient, harmrequiredintrespasstochattelbutnottrespassto land Becausewebumpintopeopleorthingsallthetime,whereastrespassto landislesscommonandmoreavoidable Noharmbecausesendinglettersdoesnotharmamailbox,orcalling peopledoesnotharmatelephone EvenifserverswereonIntel'sproperty,notrespasstolandb/cintangible interferencesonlandarenottrespassesunlesstheycausephysicaldamage

 Electronicinvasions maybeconceivableastrespass,i.e.spammingclogsservers Nonuisance eitherbecauseserversarenotrealpropertyinthesensethataperson cannot"affectinguseandenjoyment"ofaserver SELFHELP RULESelfHelp: Apersoninpossessionofpropertycangenerallyusereasonableforce"topreventor terminateanunlawfulentryorothertrespassuponlandoratrespassagainstortheunlawfulcarrying awayoftangibleproperty" Jurisdictionsdisagreeonwhetherreasonableforce=deadlyforceabsentphysicaldanger Morecontroversialistheuseofselfhelptorecoverpropertyoncepossessionhasbeenlost RULERepossession: Alandlordmayprovearepossessionislegal(andnoliability)if: i. Thelandlordhadalegalrightofpossession ii. Thelandlordusedpeaceable means ofreclaimingpossession EXAMPLES: Bergv.Wiley (LclaimedTbreachedleasesoLchangedlocksandreleasedproperty butLs meansofrepossession wereforcible(violencewouldhaveeruptedhadTbeenpresentor notrestrainedenoughtoresorttojudicialprocess)andthereforeunlawful Twostepanalysis: a) DidTabandonorsurrenderleasehold? b) WasL'sselfhelprepossessionofpremiseswrongasamatteroflaw? TheonlylawfulmeanstodispossessaTwhohasnotabandonedorsurrendered propertyistoresorttojudicialprocess whichLdidnotdo Asamatterofpolicytodiscouragepeoplefromtakinglawintotheirown hands judicialdeterminationavoidserroneousrepossessionandalso disruptiontosocialorder/violence Williamsv.FordMotorCreditCo. (repossessionofcarwaslegalbecauseitwas accomplishedwithoutanyincidentthatmightprovokeviolence) 1) Legalrightofpossession basedondefaultinpaymentonthecar 2) Peaceablemeans ofreclaimingpossessionbecausecarwastakenat4:30AMand plaintiffdidn'tprovokeviolence Moretoleranceof/latitudeforselfhelprepossessionofpersonalpropertyasopposedtorealproperty Importanceofrighttoexcludefromrealproperty Moveabilityofpersonalproperty Courtdidn'twanttodisrupttheconsumermarketbychillingthesaleof goodsoncredit LAND Trespass SelfHelp Noharmrequired (LandlordTenant) (1)rightof possession&(2)peaceablemeans PERSONALPROPERTY Harmrequired (SellerBuyer) (1)rightofpossession&(2) peaceablemeans

EXCEPTIONSTOTHERIGHTTOEXCLUDE
COMMONLAWEXCEPTIONS RULENecessity: privilegetoenterlandofanotherwithoutconsentinordertoavoidseriousharm EXAMPLES:Ploofv.Putnam (necessityofsavinglifejustifiesdockingsoanyinterferencesw/ personalpropertythatwouldotherwisehavebeentrespassesisexcused) Defenseofnecessityshiftsfroma propertyrule liabilityrule Oretainsentitlement,butdoesnothaveruleofabsoluteexclusion theintrudercanuse theentitlementoutofnecessity,withoutOsconsent,buthemustpaytheOjust compensationforanydamage RULECustomRight: righttohunt onunenclosedanduncultivatedlandshasneverbeendisputed,and

hasbeenuniversallyexercised EXAMPLES:McConicov.Singleton (norighttoexcludeotherswhoarehuntingonyourlandpartly becausethiswasbackinthedaywhentherewasnecessity tohuntforfoodandpartlybecause customofhunting) Lawnow ifyouhaven'tpostedonyourland,peoplecanhunt/fishthere Postingallowsyoutowithdrawyourlandfromthecommons Economicsofhuntinghavechanged,nowhuntingismoreofarecreation activity,sohuntersnowmaybewillingtopayforuseofland RULEPublicAccommodations: WhenpropertyOsopentheirpremisestothegeneralpublic inpursuit oftheirownpropertyinterests,theycannotexcludepeopleunreasonably cannotactinanarbitrary ordiscriminatorymanner towardspersonswhocomeontheirproperty EXAMPLES:Ustonv.ResortsInternationalHotel (casinoscan'tprohibitpeoplebasedoncard countingbecauseGamingCommissiondidn'trecognizeasareason(didnotexplicitlystatethatin itsrules whichareexpansive) Righttoexcludecan'tinterferew/another'sconstitutionalrights Butonlyappliestostateaction soprivatepropertyOscouldstilldiscriminateonany basis unlessitisapublicaccommodation RULEAntiDiscrimination: Thepowerofthestatetocreateandenforcepropertyinterestsmustbe exercisedwithintheboundariesdefinedbythe14th Amendment statecannotenforcediscrimination EXAMPLE:Shelleyv.Kraemer (14th Amendwouldbeviolatedifthestatejudicialenforceda privateracistcovenant,becausetheactionwoulddenyequalprotectiontoplaintiffs) Butalso importantpersonhoodargument therestrictiononthesellersrighttoselltheir housetowhoevertheywantedwasagainstthenaturalpropertyrighttotransferthetitle

OTHERPOWERSOFSOVEREIGNOWNERS
LICENSES RULELicenses: Alicenseisawaiverofowner'srighttoexclude,likeapermissionslip Merelicensesarenotpropertyrights doesnotneedtosatisfySoFandcanbemadeorally Butyoucanstillcreateapropertyrightbyhavinganinterest inthethingonthelandtowhichyou gotthelicense,oragrant EXAMPLES: Marronev.WashingtonJockeyClubofDC (theticketpurchasemadeacontract,butisnota conveyanceofaninterestintheracetrack,sonotapropertyright) Woodv.Leadbetter (alicenseisalwaysrevocable,butifcoupledwitha grant itisnot i.e.a licensetohuntcanberevokedbutagranttotakethekilleddeermakesitirrevocable) Hurstv.PictureTheatres,Ltd. (itisassaultandfalseimprisonmentwhenyoukickamanout ofthetheatreafterhepaidfortheseatandwasbehavingreasonably becausetheticket purchasewasacontractorlicense,butwithitcameanimpliedgrantorinterest tobeable tositthroughtheperformance) Publicpolicy themovietheatrecouldjustsellandrevoketheticketsatwillifthey hadanabsoluterighttoexclude ProCD,Inc.v.Zeindenberg (bypurchasingthesoftware,Zeidenbergagreedtothelicenseor contract,whichisnotapropertyright thisisnotacopyrightbecauseitisnotacreative expressionandnotapatentbecauseitisnotnew) Contractsonlyaffecttheparties butcopyrightlawsarepropertyrightsagainst "everyoneintheworld" Pricediscriminationisok,that'swhatbusinessesdo Contractscanbeprintedintinyscriptoutsideorthesoftwarecompaniescanjust write,bybuyingthissoftware,youagreetotheshitinside Transactionswheremoneyprecedesthecommunicationofdetailedtermsare common airlinetickets,cruiselinetickets

BAILMENTS RULEBailments: Abailmentisthetransferanddeliverybyanownerorpossessor(thebailer)of possessionofpersonalpropertytoanother(thebailee): a. whosepurposeinholdingpossessionisoftenforsafekeepingorforsomeotherpurposemore limitedthandealingwiththeobjectorchattelaswoulditsowner,and b. wherereturnoftheobjectorchattelinthesame,orsubstantiallythesame,undamagedcondition iscontemplated RULEStandardsofCare: a. Whenbenefittobaileeisslight,careisslight,liableonlyforgrossnegligence (i.e.gratuitousbailmentliketakingcareofsomethingoryourfriend,finders,bailment createdbymistake) b. Whenbenefitisequal,dutyofreasonablecareunderthecircumstancesandliablefornegligence (i.e.valetdriverorhotelguy yougivethemmoneytotakecareofyourshit) c. Whenbailmentbenefitsonlythebailee,themerestneglectordamage makesthebaileeliable (i.e.borroweditems) EXAMPLES: Allenv.HyattRegency NashvilleHotel (theparkinglothadadutyasabailee becausethe factsmadeitmorethanalicenseorhiringofspace) Nobailmentwhenitwasjustanunattendedparkinglotwithmeters,butthe attendantandtheticketandtheoneentry/exitinthiscasemeantthattherewasan expectation theattendantswouldprotectthecars Ticketsaysnoresponsibilitybutwhocares,itwasnotreadandnotacontract consumersdon'tshoparound wearerationallyignorantofthesestupidfacts Cowenv.Pressprich (awindowmarked"deliveryofsecurities"doesnotqualifyasan invitation,sothrowingabondthroughthewindowdoesnotmeanthereisatransferof title,thusnoobligationasabailee;andinvoluntarybaileesdon'thavethesamedutyof responsibilityasavoluntarybailee) Noconsenttothemistakingdelivery,sonotransferoftitle,sonoobligationasa bailee Involuntarybailees areonlyresponsibleiftheyinterferewiththepropertyso thatanimpliedcontractofbailmentiscreated(iftheykept[likeafinder] the letterthentheremighthavebeenanimpliedcontractofbailment) PhasnorighttobringsuitwhentheycouldnotcompelDtokeepphysical propertyandwhentheinvoluntarybaileedidnotuseunreasonable orproper meanstoridthemselvesofthemistakingpossession TheWinkfield (abaileehasmorerightstothepropertythananybodyelseintheworld exceptthanthetrueowner,sothepostofficecouldsueTheWinkfield forthelostproperty ofothers) ABANDONMENT,DESTRUCTION,&TRANSFER Ownersovereigntyincludestherighttoabandonproperty,destroy,ortransferproperty RULEAbandonment: Abandonedpropertyisthatwhichanownerhasvoluntarilyrelinquishedallright, title,claimandpossessionwiththeintentionofterminatinghis/herownership,butw/ovestingitany otherpersonandwiththeintentionofnotreclaimingfurtherpossessionorresumingownership, possession,orenjoyment Absentprooftothecontrary,possessionispresumedtobeinthepartywhohasrecordtitle EXAMPLE:PoconoSpringsCivicAssociation,Inc.v.MacKenzie (evenwhenthepartyobviouslydid notwantitanymorePAlawdidn'tallowabandonmentofrealpropertywhentheystillheldtitle) RULEDestruction: Thetakingofpropertybyinheritanceorwillisnotanabsoluteright,thestatemay saywhatbecomesofthepropertyofaperson,b/cdeathforeclosesthedeceased'srighttocontrolit andatestatormaynotimposeconditionsthatareuncertain,unlawful,oropposedtopublicpolicy EXAMPLE:Eyermanv.MercantileTrustCo. (thedeadwomancouldn'thavehernicefancyhouse burneddown,perherwill) RULETransfer: Everyrestraintonalienationofpropertyisnotinvalid,butoneiswhenitviolatesrightto

transferpropertyatall EXAMPLE:Lauderbaughv.Williams (themembershiprequirementtheplaintiffhadtomeetin ordertosellherhousewasinvalidb/cittookawayherrighttosellherpropertyandthecontrol overmembershipisarbitrary) RULEStatuteofFrauds: Anyconveyanceoflandotherthanlease3yearsorlessmustbeinwritingand signedbyatleastoneparty RULEDelivery: Nodelivery=nogift,butyoucanstillwillproperty Deedsmustalsobedelivered RULEGiftsinCausaMortis: giftsincontemplationofdeathmustbejustaspersonisabouttodie,andif thepersonlives,giftinvalid Giftstrumpsawillorheirs

FORMSOFOWNERSHIP
NumerusClausus: Property,unlikecontract,isnotfreelycustomizablebypartiesbutratheris standardizedintoaclosedsetofapprovedforms Designedtoreducecostsb/callowingonepersontocreateanidiosyncraticpropertyright,the informationprocessingcostsofallpersonswhohaveorwantthistypeofpropertyrightgoup Onlythosewhoarereallywillingtopayforitcandoit(pricediscriminationorpollutiontax) MEDIATINGCONFLICTSBETWEENOWNERS:CONFLICTSOVERTIME RULEWaste: AffirmativeWaste iswhenalifetenanttakessomeactiontounreasonablyreducethevalueof thereversionaryorremainderinterest(cuttingdownafewtreesisok,butnotaforest) OpenMinesDoctrine: anyminingofmineralswaswasteunlessmininghadstartedbefore lifeinterest PermissiveWaste isthefailureofatenanttorepairorupkeepproperty,ornotpayingtaxes AmeliorativeWaste iswhereanactsignificantlyincreasesthevalueofaninterest butthisisalso notallowedbymostjurisdictions Compare Brokawv.Fairchild (plaintiffcan'tteardownhouse becausetestator'sgrant passedon"residence"notjustlandandplaintiffonlyhasalifeestate thehouseneededto bepreservedforthefutureinterests eventhoughanewhousewouldincrease value) With Melmsv.PabstBrewingCo. (OKtoteardownthemansionbecauseitwascompletely surroundedbyanindustrialparkandtherewasnovalueinpreservingthehousefor residentialorbusiness) Posner sayscourtsshouldjustapplysimpleruleofwealthmaximization Ifthelifetenants'actionwouldmaximizethepresentvalueofthepropertyforboth thelifetenantandthereversionorremainderinterest,thenitshouldbepermissible PresentpossessoryO'srightsareconstrainedbylawofwastefromexercisingfullrightsof ownershipsothatnonpossessoryOsareprotected Doesn'tmatterthatallfutureinterestswouldbebetteroffeconomicallyw/ohouse Showswhylifeestateisoftenabadidea endsupbindinglifetenant RULERestraintsonAlienation:Completerestraintonalienationofafeesimpleisvoid(evenfora limitedtime),butpartialrestraintsareOK,stilldisfavored Againstpublicpolicyb/cbasicpremiseofownersovereigntyistherighttotransfer ButrestrictionsonalienationOKforlifeestates andgenerallyOKforusagerestrictionsand defeasibleestates, see MountainBrowLodgev.Toscano (userestrictionbylodgemembersonlyis OK,butnotsale/transferrestrictionbecauseitisanabsoluterestraint butnodifferencein outcomebecauseafterremovingtherestrictionclause,itjustbecomesadefeasibleestate) MEDIATINGCONFLICTSBETWEENCONCURRENTOWNERS RULEConcurrentInterests: 3wayswhere2ormorepeoplecanhavepossessoryinterestsinthesame property: a. JointTenancy(whichincludesrightofsurvivorship)

b. Tenancyincommon(doesnothaverighttosurvivorship) c. Tenancybyentirety(onlybetweenhusbandandwife,includessurvivorshipandindestructibility) RULEJointTenancy: eachpartyhasasingle,unifiedinterest inrealorpersonalproperty Survivorship ifonedies,theotherbecomesthesoleowner Possession eachentitledtooccupytheentirepremise EqualShares identicalinterests,identicalshares cannothave1/4and3/4 Created bysingleinstrument(deed,will)andalltenantsatsametime Destroyedorsevered whenonejointtenantconveysaninteresttoa3rdparty,remainingparties stillhavejointtenancyandeverythingelsebecomesatenancyincommon Leases donotsevere Mortgages usuallysevere,exceptinstatesthattreatmortgagesasliens,see Harmsv.Sprague (lienisonlyasecurityinterestintheproperty,butdoesn'tchangethetitle) RULETenancyinCommon: eachtenanthasaseparateundivided interest Nosurvivorship eachtenantcanmakeatestamentarytransfer interestpassestodescendants Unequalshares areallowed Presumptionistofavortenancyincommonoverjointtenancy(aslongasnotmarried) RULETenancybytheEntirety: Only22statesusethis survivorship,butnoseverance atall surviving spousegetscompleteinterest Divorce endsthetenancyinentiretyandsplitaccordingtotenantsincommon(equalshares) RelationshipBetweenCoTenants Nodutytoaccount i.e.onecoTdoesnothavetopaythenonoccupyingcoThalfofwhat normalrentwouldbe Unlesstheoccupyingtenantousted theother, see Gillmorv.Gillmor (CoTnotliableto othercoTforrentbymerelyusingcommonpropertyaslongashedoesn'tinterferewith othercoTrighttooccupy) Ousting acoTrequiresanactofexclusionORusethatnecessarilypreventsanother coTfromusinghisrightintheproperty Paymentsmadebyonetenant: missingcoTnotrequiredtoreimburseoccupyingcoTfor repairs/improvements/taxesmadetocommonpropertywithoutconsentofothercoTs UnlessothercoTshavestoodbyandpermittedhimtodoso, see Gillmorv.Gillmor Partition atenantincommonorjointtenantcandividethepropertyorsellitanddivide proceeds,see Delfinov.Vealencis (ifimpracticabletophysicallypartitionpropertyOR interestsof partiesbetterserved courtcanorderapartitionbysale) Presumptionagainstpartitionbysale MARITALPROPERTYINTERESTS RULECommunityProperty: anyincomeorpropertyfromincome(notgiftsorinheritance)acquired duringthemarriageisconsideredforthebenefitofthecommunityandequallydistributed Death ifthespousedieswithawill,thewilldisposesoftheproperty,ifspousedieswithouta will,thespousegetseverything Exceptionwithspousal/forced/electiveshare survivingspousecanrenouncethewilland receivedeither1/2or1/3oftheestate,includingrealandpersonalproperty Toprotectthesurvivingspousefrombeing"disinherited" Lengthofmarriagedoesn'tmatter Divorce maritalpropertyasdefinedbystatuteissubjecttoequitabledistribution Whenmarriagewasshortandtherearelessassetstodivideup,courtsoftengrantalimony (helpspousewhohelpedyou)insteadofequaldivisionofassets Butsomejurisdictionssaynomaintenanceaward ifcapableofsupportingyourself Incomeearnedaftermarriageends(futureincome)treatedasseparateproperty Lookatactualfinancialcontributionindeterminingdivisionofassets,nothowthat contributionwillaffectfutureincome But see OBrienv.OBrien (medicaldegreeismaritalpropertyandsubjectto equitabledistribution, includingthevalueofthedegree basedonfuture earningcapacity)

ENTITYPROPERTY:SEPARATINGMANAGEMENTANDPOSSESSION
LEASES Leasesareadefactofinancingdevice(allowspoorpeopletogetthingstheynormallydon't) Also,leverageresourcessobothlandlordandtenantcanconcentratetheirlimitedresourceson specificareas shoppingmall(storescan'trunthemallandthemallcan'trunallthestores) Spreadstheriskforboththeowner(multipletenants,allofthemcan'tdefault);andthetenant (mightgetanewjob) OLDCOMMONLAW&INDEPENDENTCOVENANTS RULEIndependentCovenants: IndependentcovenantsmodeloftheLTrelationshipwasthatall covenantsmustbeperformedwithoutregardtowhetherothercovenantshavebeenorcanbe performed EXAMPLE: Paradinev.Jane (don'tgiveashitthatsoldiersinvadedthepropertyandtenantwas kickedout,thetenantstillowesrent twoindependentpromises) Allocationofriskunderaleasehereisthat tenantwillgetupsidegain,soalsotakes downsideriskifsomethingbadhappensthatisn'tL'sfault THERISEOFDEPENDANTCOVENANTS&THEEMERGENCEOFTHEMODERNLEASE GeneralRULES: StatuteofFrauds anyleaseformorethan3yearsmustbeinwritingandsigned EstatesforYears anyleaseforafixedperiodoftime,musthavefixedstartandenddatesandno noticeofterminationisrequired(impliedalreadyinlease) PeriodicTenancy leasecontinuesatendofoneperiod,unlesseitherpartyterminatesitwith notice(commonlawrequiredoneperiodofnotice,moststatestatutesrequire30daysnotice) TenancyatWill nostateddurationandcanbeterminatedatanytimebyeitherparty RULETenant'sRightofPossession: courtssplit,somerequiretheLtodeliveractualpossession (newT cansueLifLdoesn'tkickoutTout),somerequirelegalpossession only(newTisonhisown) RULETenant'sRightofQuiteEnjoyment: ifLorsomebodyelseunderLinterfereswithT'srighttoquite enjoymentanduseofthepremises,thisisabreachofcovenant LtraditionallynotresponsibleforotherT'sbehavior,butrecentlyL'sheldliablewhentheotherT isviolatinghislease, see Blackettv.Olanoff (Tdidn'thavetopayrentbecausetheloudassclub nextdoorhadaleasethatsaiditwouldn'tdisturbneighbors) RULEImpliedWarrantyofHabitability: residentialT(notcommercial) canterminatethelease, withholdrent,oruserenttomakerepairs,butmustprovideevidence(suchasbreachofabuildingcode orsubstantialthreattoT'shealthorsafety) Noretaliatoryeviction EXAMPLE:Javinsv.FirstNationalRealtyCorp. (impliedwarrantyofhabitabilityappliedeventhou Tknewabouttheconditionsatcontractformation) UnderCL,wouldhavetoshowbreachofduty,substantialandpermanentdeprivationof enjoymentofpossessionandabandonmentbutwedon'thaveall3here NowwetreattheTLrelationshipasacontract:impliedwarrantyofhabitability+implied dutyandT'sobligationtopayrentis dependent onL'sperformanceofthisduty RULEConstructiveEviction: theTcanstoppayingrentif: i. Thereisabreachofduty(i.e.repairsomeshit,ortostopnightclubfromdisturbing tenants evenbyevictionofnightclub, see Blackettv.Olanoff ) ii. SubstantialandpermanentdeprivationofT'senjoymentofpossession&enjoyment iii. AbandonmentbyT inreasonableperiodoftime(Trequiredtoabandonpremises becauseit showsthatconditionsweresufficientlybad uninhabitable/unusable) Notethattraditionalcommonlawappliesindependentcovenantstohabitabilityofpremises,so usuallytheTcannotjuststoppayingrent,UNLESSTshowsconstructiveeviction BUT modernstatutessayTcanwithholdrentbecausethereisanimpliedwarrantyof habitability byL

RULEBreachofLeaseinCommercialSettings(TreatedasBreachofContract): EXAMPLE: MedicoDentalBuildingCo.ofLosAngelesv.Horton&Converse (L'spromisenotto leasetoanotherpharmacyandT'spromisetopayrentaredependent,therestrictivecovenant wasnotincidental,itwenttothewholeconsiderationofthecovenant) Thebreachwasmaterial evidencedbythe"rider"thatseparatelystatedtheconsideration inexchange forbothparties,ANDbothpartiesknewthelargedoctorpopulationwasthe onlyreasonforthelease Thetenanthadseverallegaloptionshere: 1) Rescindtheleaseduetothelandlord'sbreachandnotpayanymorerent 2) Continuedtherentandsuedforlostprofitsattheendofthelease 3) Treatedthebreachastheendofthe"contract"andsuedfordamages Thisrepresentsariskspreadingbetweentenantandlandlord RULEAbandonment: ifTabandonsanddoesn'tpayrent,Lhas3options: a. Treatassurrenderandaccept LcansueTforRentL FMRV RULESurrender: needTsovertactofsurrenderandLsovertactofacceptanceofsurrender See InreKerr (Lrelettingthepropertywasimplicitacceptance ofsurrender) Treleasedfromobligationsunderlease ButLcansuefordamages differencebetweenrentdueunderleaseandfairmarketvalue b. ReletpremisesforT LcansueTforRentL RentL2 Makessensewhenmarkethasgonedown cansueTfordifferencebetweenhisrentand currentrentcollectedfromsecondT(notfairmarketvalue) Butsee InreKerr (Lsayshetookoption2torelet,butsincethenewleasewaslonger thantheoriginal,courtsayshetookoption1) c. Donothingandsueforrent LcansueTforRentL asitcomesdue; nodutytomitigate Butsee Sommerv.Kridel (NewJerseysaysthereisadutytomitigate shiftingtocontract) CourtalsosaysunfairtoTandwastefulnottorelet Lnowrequiredtomitigatebytakingreasonablestepstoreletpremises Mustshowaptalongw/otheravailableapartments ButcanstillrejectprospectiveTsonreasonablegrounds TESTHYPO:Lease2months$1000/month,12monthlease,after2monthsthelandlordchangesthe locks,advertisingstartsinmonth5,landlordsignsanewleaseforthefinal5months,butonlyat$900 SurrenderMethod: Theacceptance isthechangingofthelocksbythelandlordsothesurrenderisgood Tenantowes$2000dollars,fromthetimehelefttothetimelandlordacceptedhisoffer ReasonableEffortstoMitigate: Thereasonableamountoftime seemstobe1month,i.e.theamountoftimethatitactually tookforthelandlordtofindanewtenant Thedefaultingtenantisgoingtobeliablefor1monthofdowntime($1000)andthe$100 differenceinrentforremainingmonthsonhislease(9x$100) TESTHYPO: Twaives IWHrightsfora$200reductioninrentb/cofsomedefectinapartment,butthen stopspayingrentb/cclaimsCodeviolations Does Javins apply? ConditionsexistedattimeofleasebutmostcourtssayJavins applieseventoobvious defectspresentattimeoflease LwillarguethatTknowinglywaivedthisright,bargainedaroundpoorconditions ButIWHmeansTsmustgetatleastoursocietalstandardofhousing courtswont allowthemtomakebargainsforsubstandardhousing Thiswilldecreasethesupplyoflowincomehousing b/cLswilleithertakesub standardapartmentsoffthemarketorwillfixthemupandthenraiserent Thosethatcantaffordtosuewillbeputonthestreet,andthosewhocan affordtosuearethosethatcouldaffordhigherrentanyway Butalsohavetothinkaboutcosttosocietyofhavingsubstandardhousing,i.e. disease,vermin,firehazards,etc HerepublicpolicyoverridescertainKprovisions courtreadingLeg

determination(HousingCode)intolease CouldLegjustestablishrentcontrol? Economistsagreethatrentcontrolisbadfortheeconomy somestayin rentcontrolledapartmentswhocouldaffordtomove,somearestill closedoutofthemarket Soifnowaiver,Javins applies,andThasremedies: i. Couldstayandwithholdrentuntilviolationsfixed ii. CouldsueLtofixapt(specificperformance) iii. AlsocouldreceiveKdamages ButJavins sayspremisesmaystillbeworthsomething CourtmustdetermineFMRVw/defects whichmaybewhatThadcontractedtopay(and washere!) TRANSFEROFTHELEASEHOLD RULETransferofLeases: Unlessthepartiesagreetootherwise,eithermaytransferhisinterest Lcantransferhisreversioninterestto3rdpartyduringtermoflease WhenLtransfersthereversion,transfereetakespropertyinterestsubjecttoT'sleasehold interest Tcanalsotransferhisleaseholdinterest Sublease: TcarvesoutaninterestforsubTwhichissmallerthanT'sinterest Assignment: Ttransfersentireoriginalinteresttoassignee(mustbeentireremainingtime) SignificanceisbecauseassignmentmeansnewT1isliableforrenttoL,butsublease justmeansthatT1isresponsibleonlytooriginalT See Jaberv.Miller (ThastopayLforrent,notT1,becauseT>T1wasanassignment, thusLandTarestillinprivityofcontractbutthereisnoprivityofcontractbetweenL andT1(butthereisprivityofestate) RULERunningofBenefitorBurden: Theburden runsifthepromisetouchesandconcernsthe promisor'sassignee'sinterestintheland(promisor'sassigneecansuetoenforce);thebenefit runsifthe promisetouchesandconcernsthepromisee'sassignee'sinterestintheland(promisee'sassigneecan suetoenforce) EXAMPLE: MullendoreTheatres,Inc.v.GrowthRealtyInvestorsCo. (a leasecovenantforbenefit ofpromisee'sassigneedoesnotrunwiththelandunlessittouchesorconcernstheland,andin thiscaseasecuritydepositwasnotabenefittotheland) thoughisn'tadepositforthebenefit fortheland(whethertopreventdamagesortoinsuretimelyrent)? RightsafterTassignstoT1: TstillliabletoL,regardlessofrunswithlandornot TcansueT1ifT1doesnotpayrentbecauseT1becomesprimarilyliableandTissecondaryliable T1liabletoLonlyforpromisesthatrunwiththeland(i.e.promisetopayrentbutnotcontractfor securitydeposit) L1isliableforanycovenantsthatrunwithland,i.e.repairsandupkeep RULELimitationsonTransfers: Lcan'twithholdconsentarbitrarily,standardofcommercial reasonableness EXAMPLE: Kendallv.ErnestPestana,Inc. (L'srefusalofsubleaseb/cwantstosublethimselfin ordertotakeadvantageofincreaseinFMRVisnotcommercialreasonable) Lwithholdingconsentinordertoclaimasurplusisnotavalidreasontorefuse Reasonablebasesforrefusalofsublet:poorcredit,ifT1wasgoingtousepremisesfor somethingcostlytootherTs,illegal,etc Kendall doesntsaywhether"commerciallyreasonable"standardwillapplytoresidential leases,butataminimum,residentialshouldbejustplainreasonable Lsgetalittlemorefreedominresidentialproperty Oftenamorepersonalrelationship MostresidentialTsnotsublettingforprofit(asopposedtoTin Kendall) Argumentto extendhigherstandardtoresidentialpropertyisdiscrimination

COOPS,CONDOS,&COMMONINTERESTCOMMUNITIES RULECommonInterestCommunities: onepartyhaspossession,butanother(oftenmanagerial association)hascontrolovercertainaspectsofthatpossession(i.e.restrictionsonsale,restrictionson use) PossessordeemedtobeOinafullersensethanT owninfeesimpleabsolute Managingentitytypicallyagentnotjustforitself,butininterestsofallresidentstogether Oofaparticularunitdoesn'tgetallofthesticksinthebundleofusualownership,shegivesup someindividualautonomyforaformofcollectiveselfgovernance RULERestrictions: courtsmustenforcethecovenants,conditions,andrestrictionscontainedinthe recordeddeclarationofacommoninterestdevelopmentunlessunreasonable EXAMPLES: Nahrstedtv.LakesideVillageCondominiumAssoc. (apetrestrictioncontainedinthe recordeddeclarationofacondoisnotenforceablebecausethepresumptionisthatthe restrictionsinthemasterdeedarereasonablebecausewasdesignedtobenefitthe communityasawhole) Restrictionsshouldbestruckdownonlywhenarbitraryorinviolationoflaworpublic policy Ownersobviouslywantedtomaximizeprofits(businessjudgmentrule),thusdowhat isgoodfortheentirecommunity thebitchshouldoflivedsomewhereelse 40West67th Streetv.Pullman (OKtokickToutbycoopboardb/cofhisobjectionable conductbecausethebusinessjudgmentstandard governsacoop'sdecisiontoterminatea tenancy Defertoboard'sjudgmentaslongasboardacts: 1. forpurposesofcoop 2. withinthescopeoftheboard'sauthority 3. ingoodfaith TRUSTS RULETrusts: 3legalpersona+atleast1thing a. Settlor isthepersonwhocreatesthetrust b. Trustee isthepersonwhoreceivesthetrustandresponsibleformanagementandcontrol c. Beneficiary isthepersonthetrustismeanttobenefit RULESettlor'sRights: Thefounderofthetrustistheabsoluteowner ofhisproperty EXAMPLE: BroadwayNationalBankv.Adams (thefounderofthetrusthadarighttodisposeofit, absolutegifttohisbrother,orgiftwithrestrictionsorlimitations suchasthiscasewhereincome ofthetrustwascreatedforthebenefitofthedebtorbrother;thuscouldnotbereachedby attachmentbeforeitwaspaidtobrother) Exceptwhenyoucan'tfigureoutWTFthecreatorofthetrustwants, see Wiberv.Ownes (if thetermsofthetrustareincomprehensible,tofindcypres ("closeenough"): Needstobeconstruedtothegeneralintent Andspecificintentisimpossibletosatisfyorthatwouldviolateapublicpolicy RULEDutyofExecuter(Trustee): trusteeshaveadutytocarryouttheexpressterms ofthetrust,the dutytoprudentlyinvest (dowhatisgoodfor)trustassets,thedutyofloyalty,thedutynottobeina conflictofinterest position(i.e.toprofit),thegeneraldutytoadministerthetrustinthebestinterestof thebeneficiaries EXAMPLE: Rothkov.Reis (2executorsofartist'sestatehadBIGconflictofinterest basically rippedthemoff sotheyhadto payappreciationdamages becausetheestateassetsaresold belowvalue) The3rdexecutorbreachedthetrustbyfailingtoexerciseordinaryprudence whenhe witnessedtheothers'dividedloyalties soheisonlyliablefordamagesofcostwhensold NotethatthefuturevalueofthepaintingsFARexceededwhatthe"appreciationvalue"that thecourtsdetermined todaythepaintingswouldbeworth$100millioninsteadof$15

TITLERECORDSANDTRANSFERS
NemoDat istheprinciplethat"noonecangivethatwhichhedoesnot have" sothetransferee'srightsarederivedfromthoseofthetransferor RULEBonaFidePurchasersUCC: isexceptiontonemodat,abonafidepurchasermayhavegoodtitleto stolenthings,ifhedoesn'tknowitwasstolen,paidvalueforit,andthetitleis"voidable"insteadof "void" EXAMPLE: KunstsammlungenZuWeimarv.Elicofon (NYlawsaysownerofGermanartinNY,who legallyboughtit,cannothavegoodtitlebecauseonlythetrueGermanownerhastherighttotitle intheproperty butquestionableiftheartwasstolenperse) EXAMPLE: Kotisv,NowlinJewelry,Oinc. (thiefreceivedthewatchthroughatransactionof "purchase"becausethewatchwasgiventohimvoluntarily) Astraightuptheftisnotapurchase(void),butaswindle isapurchase(voidable) Atransferorwithvoidabletitlecantransfergoodtitletoagoodfaithpurchaser under 2.403(a),thetestforgoodfaith istheactualbeliefofthebuyer Andthegoodfaithpurchasermustpaygoodvalue RULEEstoppelException: whennewownersarebonafidepurchasers,ifthepropertyownerwas negligentincreatinganestoppel,heshouldhavetobeartheconsequences EXAMPLE: Hauckv.Crawford (thelandtransferwasinducedbyfraudbuttheproperty ownerstillcouldn'tgethislandbackbecausehewasnegligentinsigningthedeed) Thisisaminorityrule normallythebadpartyismissing,butitseemsthecourt mighthavebeeninfluencedbythefactthatthepropertyownercouldraiseanaction againstthepartythatconductedthefraud RECORDINGACTS Provingownershipcomplicatedassocietymovedawayfromnemodat Originallythesystemwasthatyouneededtogettheconsentofthepropertyowner,butthenalso takepossessionofthepropertybeforeyoucouldassertyourpropertyrightagainsta3rdparty Betweentheparties,itwasaprivatecontractthatgoverned Butagainsttherestoftheworld,thepossessionwasnecessary RULEfilingsystems: Registration resolvespotentialdisputesatthetimeofthetransfer Moreaccurate,butmoreexpensiveanddependsonlazyandincompetentgovernment workers Alsoleavesaracingproblemincaseofairplanes,boats,etc i.e.USPTOregistration Recording leavesdisputestobefiguredoutafterthetransfer,whentheyarise Problemwithinaccuracy,especiallywithartworkbecausetheyjustforgetherecordingtoo TypesofRecordingActs: Race: thewinneroftheraceprevails,theexceptiontothenemodatprinciple Notice: asubsequentbonafide purchaserwinsregardlessofherecords unlesshehasnotice (actual,constructive,orinquiry),butapreviouslyrecordedinterestgivesconstructiveor"record" notice RaceNotice: asubsequentgoodfaithpurchaserwinsonlyifhehasnonoticeANDrecordsbefore thepriorinstrumentisrecorded Notetogetprotectionfromrecordingacts,apartymustprovetheypaid"goodvalue"forthe property,asdefinedinpropertyONLY,see Hoodv.Webster (hugeassholeofabrothergetsland eventhoughhebrokehispromisetotakecareoflandownerwidow,becausewidowdidnotshow considerationinthepropertysense eventhoughthenephewscametothelandinordertohelp thewidowsurvive,considerationinproperty=/=detrimentincontractlaw) TheShelterRULE: OconveystoA,whodoesnotrecord;thenOconveystoBforvalue,whodoesnot knowaboutAandrecords;onceBprevailsoverA,Bisgivenalltherightsofownership,includingthe righttomakenormalnemodatstyletransfers,soitdoesn'tmatterifBgiftsthepropertytoCorCis

notagoodfaithpurchaser ExceptionisthatBcannottransferthepropertybacktoO,toomanyopportunitiesforcollusion TheWildTitle: Therecordingonlygivesnoticewhenitcouldbefoundusinggenerallyaccepted methods(i.e.granteeandgrantorindexes) EXAMPLE: Zimmerv.Sundell OconveystoA,Aneverrecords AconveystoB,Brecords OconveystoC,Crecords CwinsoverB,becauseChasnowayoflookingupAorB(ABdeedisoutsidethechainof titleor"wild") AdversePossessionNotRecordable: EXAMPLE: Mugaasv.Smith (adversepossessiontrumpsrecordingacts,evenbybonafide purchasers) Becauserequiringadversepossessorstorecordiscounterpolicy most"good" adversepossessionsareaccidental,soarecordingrequirementforadversepossession wouldonlyencourage"bad"adversepossessors

THELAWOFNEIGHBORS
EASEMENTS EasementsRule: acontractinwhichanowneragreestowaivehisrighttoexcludecertainkindsof intrusionsbyanother Nonpossessoryinterestintheuseofanother'sland protectedagainstinterferenceby3rd parties,butnorighttoexclude DominantT =holderofeasement(extrastickinbundle) ServiantT =holderoflandw/easement(gaveuporloststickinbundle) Affirmativeeasement iswhentheDThasrighttomakeactiveuseofanotherslandthatwould otherwisebeatrespassornuisance Negativeeasement iswhentheDTcanstopSTfromdoingsomethingtheywouldotherwisehave arighttodo(i.e.DTcanstopSTfromblockingDT'slightandair) EXAMPLE:FontainebleauHotelCorp.v.FortyFiveTwentyFive(notanegativeeasement becausewearenottreatingthisasaninvasionofproperty,todosowouldmeancreating aneasementoflightandnolegalrighttofreeflowoflight,evenin"spite"walls) Whynotjusthavespitefencesversusspitefences?Policyofbestuse?Free economy? Easementappurtenantiswhenitsbenefitisintimatelytiedtoaparticularpieceofland(common lawpresumesthisunlessspecified) BenefitsDTinuseandenjoymentofthatparticularpieceofland Runsw/theland,nottheindividual soitpasseswithlandwhenlandistransferred,but onlytotheextenttowhichitwasgranted Easementingross iswhenthebenefitisnottiedtoanyspecificland BenefitsDTpersonally butnotinconnectionwithanypieceofland Nottransferrable RULECreationofEasements: byexpressgrant,implication,strictnecessity,orbyprescription a. Expresscreation occurswithadeedorwillandmustbeinwritingperSoF EXAMPLE: BaseballPublishingCo.v.Bruton ("theexclusiveright andprivilegetomaintain anadvertisingsign"=easement,notamerelicense) b. Impliedcreation doesnotneedtosatisfySoF,butrequires: ThelandisdivideduporseveredsothatOissellingparts Theusefortheimpliedeasementexistedbeforeseverance EasementreasonablynecessarytoenjoymentofDT EXAMPLE: Oconveyshouse#1andanimpliedeasementiscreatedbecause:(1)Owas ownerofbothhousesbeforeeasement,(2)theuseexistedbeforesplittingupthe2

properties,(2)theeasementisnecessarytoreachthegarageofhouse#1 c. Easementbynecessity occurswhenaneasementoveroneparcelis"strictlynecessary"tothe enjoymentoftheother,requires: Atsometimethe2parcelswereownedbysameO Noprioruseofeasementbeforesplitrequired EXAMPLE: landlockedparcels, Schwab (Plaintiffssayimpliedeasementb/cofnecessity,sincetheirlandisotherwise landlocked) Butplaintiffsmadetheirlandlandlocked,courtsaysnoeasement d. Easementbyprescription issimilartoadversepossession requiresSoLtorunout(tacking required)withactualusethatisopenandhostile,continuousanduninterrupted EXAMPLE:Warsaw (ImpropertomakeaDTwhogetseasementbyprescription compensateotherparty(bypayingtoremoveencroachmentsthatinterferew/useofhis easement) EXAMPLE: PennBowlingRecreationCenterv.HotShoppes (PennBowlingisoverusingtheir easementinawaythatinterferesw/STsuse parkingratherthanmerelydriving,thus injunctionappropriatebecauseusinganeasementbeyonditsscope isacontinuing trespass) Defeatprescriptioninsamewasasadversepossession givepermission turnsintolicense, whichisrevocableatanytime e. Easementbyestoppel isDTreliedonSTspermission(i.e. OKforDTtouseapathifDTbuildsa house),andifthepermissionisrevoked,DTwillbeharmed(can'tgettonewhouse) EXAMPLE: Holbrook (Easementbyestoppel wasestablishedherebecauseDTusedtheroad withSTsexpressorimpliedconsent reliedontobuildhouse) ButifaeasementbyprescriptionANDestoppel givepartialpermission notaninterestin land,moreofacontract/licensetouse RULETerminationofEasements: neverbywordsalone,musthaveintentplusconductfor abandonmenttobeeffective COVENANTS&EQUITABLESERVITUDES RULERealCovenants: covenantattachedtofeesimplepropertythatundercertaincircsanalogoustoL Tdoctrineofrunningcovenantswillbindsuccessorsinanactionatlawtorecoverdamages Forbenefits(sopromisee'sassigneecansue)ofapromisetorunw/land: 1. Touchandconcern 2. Intentfortheburdentorun 3. Verticalprivity Stricterrequirementsforburden(sopromisor'sassigneeisbound) ofapromisetorunw/land: 1. Touchandconcern 2. Intentfortheburdentorun 3. Horizontalprivity=relationshipb/woriginalpartiesorelserestrictionisnotbindingon subsequentparties 4. Verticalprivity=ifsomeonesucceedstosamestateasoriginalpromisor/promisee Ifgotlesserestate(i.e.lifeestate),noprivity Whenoneormorerequirementmissing,mightstillbeabletogetanequitableremedy RULEEquitableServitudes: equitycourtshavebeenmoreaccommodatingingrantingenforcementof covenantsbyawardinginjunction orspecificperformance insteadofdamages Requirements: 1. Touchandconcern 2. Intentforburdentorunwithland 3. Noticetosubsequentowner Privityisnotrequired inequitableservitudes,2neighborscanmakeanagreementnottotear downeachother'shouseandsubsequentownersareboundiftheyreceivenotice andthe promisetouchesandconcernstheland Noticetosubsequentownercanbeactual (tellinghim)orconstructive notice(recording)

RULEWhoCanEnforceRights? Whenhave commongrantor,3questions: a. Islandsubjecttoarestrictionatall?(explicitorimplicitpromise) b. Whocanenforcerestrictionsbeyondpromiseeandhissuccessorsintitle? c. Againstwhomcanrestrictionsbeenforced,beyondpromisorandsuccessors? Existenceofacommonplanoftenakeyingredientforeachquestion HYPO (fromSanborn) Osells6lotstoA,B,C,D,EandFinthatorder.IndeedtoA,Apromisestouse landonlyforresidentialpurposes;Opromisesthatotherlandwillbesimilarlyrestricted. Bstartsbuildingagasstation,canAsueB? AcansueBifcanshowO'sintentandBhadconstructivenoticetolookatalldeedsfrom commongrantor(thisseemslikeastretch) WhatifalldeedscontainbuyerpromisestoonlyuseforresidentialuseandAbuildsgasstation, canBsueA? BenefitofAspromisetoOrunstoallofOssuccessors(postpromise) WhatifFputupgasstation,Ocouldenforcepromise butcanA,B,C,DorE? NeedtoshowA,B,C,DandEas3rd partybeneficiaries ofFspromise Evenifnotexpress,canbeimpliedbeneficiariesb/cpromisewasonlyfortheirbenefit CouldalsoshowthatAgotanimpliedreciprocalpromise beforeFevencamealong IfshowAreasonablybelievedOwasmakingimplicitreciprocalpromisethatlots wouldbesubjecttosameburdens StillhavetoshowthatFsucceededtotheburdenofthatpromise HYPO Oowns100acres,sellsoff8lotsforsinglefamilyresidential(SFR)useonlytoAH.Thensells 10acrelottoZ,whostartsputtingupastore.Awantstostopthestore. IsZslandrestricted? Awillsayallneighborsboundbyrestriction,soZslandsubjecttoitaswell Impliednegativecovenant whenAHpromisedOthattheirlotswouldberestricted, implicitlypromisedthatthesamewouldbetruefortherestoftheland LookingatwhetherAHhadareasonable expectationofthis Couldbebasedonmapoftheareaplottedout,possiblyarecordedsubdivisionplan; alsothingsgrantorsaid;etc. ButmerefactofsimilardeedstoAHwontbeenoughhavetoshowevidence ofacommonplan,includingZslot,thatletthemtoreasonableexpectSFRuse restrictiononZsland CouldalsopotentiallyhaveanexpressgrantinOsdeedstoAHpromisingentire commonplotwouldbeforSFRuseonly Conditionschangeovertime lotpresumedresidentialbutZbuysyearslater.IsZsland restricted? ConcludedthatOimplicitlypromisedarestrictiontoAH Zcanarguehehadnonoticeofthiscovenant didtitlesearch,foundnothing ButAcanargueZhadconstructivenotice dependsonwhethertherewasevidence ofacommonplanapparentattimeofZspurchase(Sanborn) CanseecommonplanattimeofdeedstoAH Nonotice=noinjunction BUTiflandwasimplicitlyrestricted,andZshouldhaveknownabouttheexistenceofthat restriction Zcanarguethatthecovenanthadbeenterminated Cantrytoshowcommercialdevelopmentinsurroundingarea OtherEquitableDefenseZcanraise: Laches:ifAHwatchedZputupstoreanddidntenforcetheirrightsforalongtime Needtoshow(1)plaintiffhadknowledgeorreasonableopportunitytodiscoverthat hehasacauseofactionagainstdef;(2)unreasonabledelayincommencingthatcause ofaction;and(3)damagetodefresultingfromtheunreasonabledelay Estoppel:ifZwasgivenpermissionforsuchuseandnowAHdontwanttogrant permissionanymore(butdependsontheaffirmativemisleading)

 Needtoshow(1)anadmission,statement,oractinconsistentwiththeclaimasserted afterward;(2)actionbyotherpartyinreasonablerelianceonthatadmission;and(3) injurytothatpartywhenthefirstpartycontradictsorrepudiatesitsadmission Uncleanhands:ifYalsoboughtlandandbuiltstore,andYnowbringingsuitagainstZ Waiver:ifenoughhashappenedandresidentshaveeffectivelywaivedtherestriction,itis nowunenforceable RULETerminationofCovenants: a. Whenthereisachangethatmakesthepurposeofaservitudeimpossibleasapracticalmatterthe courtmaymodifytheservitudeorterminatetheservitudeifitcantbemodified.Compensation maybeawardedasaresultofthechangeortermination b. Ifthepurposeoftheservitudecanbeaccomplished,buttheburdenedestateisnotsuitablefor thatpurposeanymorethecourtcanmodifytheservitudeandstillpreservethepurposeofthe servitude ModificationorTerminationPossibilities: Expiration somehavedates Release bybargain Abandonment ifnoonecaresaboutenforcingtheminfailedsubdivisions Mustshowhabitualandsubstantialviolations afewviolationsdonotconstitute abandonment Merger youbuythebenefittedestateifyouareburdened Estoppel yousayyoucandoitandyouarethebenefitedestatethentheyrelyonthatyouare screwed Prescription youactlikeyouarentburdenedfortherightamountoftime Condemnation Changedconditions doctrinerarelyapplied,unlesschangedconditionshavecomeintothe developmentitself andthenlooksmorelikeoneoftheequitabledefenses

ZONING,FORBEARANCE,TAKINGS
ZONING RULE: MostzoningisOKforusezoning(residentialonly),densitycontrols(heightlimits),regulating growthandsubdivisions,andaesthetics BUTexclusionaryzoning isnotallowedunderequalprotectionclauseofthe14thAmendment Federalcourtswillprobablyapplystrictscrutinyandrequirethatthecityactedwithapurpose to discriminateonethnicorracialgrounds EXAMPLE: VillageofEuclidv.AmblerRealtyCo. (zoningregulationsthatkeepmultiunit housingoutofneighborhoodareconstitutional,citingpublichealth,safety,moralsand generalwelfarejustifications) SomestatecourtsandsuitsundertheFairHousingActmerelyrequireadiscriminatory effect, evenifthereisnopurpose EXAMPLE: SouthernBurlingtonCountyN.A.A.C.Pv.TownshipofMountLaurel (townnot allowedtozoneoutpoorpeopleAND havetodoaffirmativeactions tohelpbuildpoor peoplehousing likehelpinglowincomedevelopersandallowingmobilehomes,etc) GOVERNMENTFORBEARANCE RULE:EminentDomain: stateandfederalgovernmentcantakeprivatepropertyforpublicuse,but underthe5thAmendmenttheremustjustcompensation. Entitlementprotectedbyaliabilityrule Mustmeet4requirements/4questionstobeanswered: 1. Whatcountsasproperty? 2. Whatconstitutesataking? 3. Whatisapublicuse? 4. Whatcountsasjustcompensation?

1. JustCompensation RULE: Compensationat FairMarketValue atdateoftaking(hypotheticalbargainb/wawillingseller andawillingbuyer) EXAMPLE: Miller assumesFMV bythehighest+bestuse butnotincludinguseofthegov(unfair toimposethishasspecialvalueontheproperty) Alsodontgettocountassemblygains valueproperty(knowingtheentireareawouldbe worthmoreasonegiantshoppingmall) Marketdoesntusuallytakeintoaccount subjectivevalue ofpropertytoO Subjectivecostsdifficulttomeasure transactioncosts woulddramaticallyincreaseif hadtodeterminesubjectivevalueineachcase Andincreasedcostswouldmakepublicprojectsmoreexpensivegenerally Butthisassumesthateminentdomainisreallyworkingforthepublicgood 2. PublicUse RULE: Limitationongovernment'seminentdomainpoweristakingmustbeforpublicuse Butifnotforpublicuse,governmentcanstilltrytobuythroughthemarket EXAMPLE: Kelov.CityofNewLondon,Connecticut (atakingforeconomicdevelopmentisapublic use b/cnotmainpurpose isbenefitforpublicand planoriginatedingov,notprivateparty) EvenmoreOKiftheareawasblightedandsufferedeconomicproblems Atakingisunconstitutionalifthepublicbenefitsaremerelyincidental HYPO: IsgovempoweredtotakeprivatelandtotransfertoGMforalargeautoplant? GMisasingleprivatepropertyO,andnopublicuseofpropertyitself Foreconomicdevelopmentargumenttowork,havetoshowsomeeconomicproblems(but doesnthavetoreachthelevelofblighted) ThenOKaslongasplanasawholehaseconomicdevelopmentpurposeforbenefitof public,notjustGM RelevantwhetherGMcametogovorviceversa 3. WhatisaTaking? a. Istherealiteraltaking? Wassomeright/interesttakenthatOhadbeforegovernmentaction? LookatwhatrightsOshaveinland,takingintoaccountconveyances Ifabatinganuisance,notataking(b/cOneverhadrighttobeginwith) EXAMPLEPhysicalUse: Lorettov.TeleprompterManhattanCATVCorp. (AllPPOs (permanent(indefinite) physicaloccupation)are persetakings PPOsentirelytakeaway Osrighttoexcludeandrighttouseandpossessw/respecttotheportionthatis permanentlyoccupied Economicimpactonlymattersincalculatingjustcompensation Temporaryphysicaloccupationsubjecttobalancingtestand b. Ifsomerightwastaken,isitaconstitutionaltaking,requiringjustcompensation? RULE:Regulations (zoning,environmentalprotection,landmarkpreservation)OKifit substantiallyadvanceslegitimatestateinterests,andunlesstheregulationsgotoofar EXAMPLERegulationforSafety: PennsylvaniaCoalCo.v.Mahon (governmentcan usuallyuseitspolicepower foratakingifit preventsharm ornoxious tothepublic) Statutenotallowingcoaltobeminedwhenthereisresidentialontopwasa takingbecausethestatedidnotactwithinitspolicepowertopreventharmto thepublic Wenttoofarbecauseittookentirerighttominethesupportestate (definesrightnarrowlyandcarvesdownthedenominator) LandOhadnotice(sonopublichealthandsafetyproblem) Governmentshouldhaveusedeminentdomain cantsidestepjust compensationbyusingregulationinstead Denominationproblem: howdowemeasuretheright,inordertodetermine

theimportanceofwhatthegovhastaken? Brandeis(dissent)saysthisisanuisanceabatement,notataking Brandeisalsoanalogizestakingthemineralrightsfromthepropertytoheight restrictionsthat takeawayallyourairrights,butdontconstituteataking Sayscantseparateasmallerinterestthatispartofthewholeproperty RULEZoningRestrictions: see PennCentralTransportationCo.v.CityofNewYork (Zoning law forlandmarkpreservation iswithinpolicepower wouldnthavebeenunderMahon, butpolicepowerhasgrownsince) Balancingtest betweenimportanceofgovgoals/benefitsVS harmtotheowner a) Economic impactoftheregulationontheclaimant(mostimportantfactor) Primary/existinguseofthepropertyisunimpaired notecourt not basingonhowmuchwastaken, buthowmuchisleft(denomination problem) Also,therewasanadjacentbuildingtradingrulesothatdefinitely stillhadalotofvalue b) Extent towhichreghasinterferedw/investmentbackedexpectations Nonegativeeasementoverarerightsb/c courtrejectsMahon conceptualseverance mustlookatparcelasawhole Alsoregulationhasnttakenall ofplaintiffsairrights justmadethem less valuable c) Character ofthegovernmentalaction Plaintiffnotsingledout bygovernment,allbusinessessubjectto landmarkpreservationlaw RULE:DepravationsofUseRestrictions OKunlessiteliminatesall economicalusefortheO EXAMPLEUseRestriction: Lucasv.SouthCarolinaCoastalCouncil (statutebarring plaintifffrombuildinganythingonhispropertytogenerateincomecountsas eliminatingalleconomicallyviableuseandthusapersetaking) Eventhoughtechnicallynotalluse/all valuetaken couldcamp,etc IfLucasrevivesconceptualseverance,wholehostofperse/totaltakingcases: propertycanbedividedupunderstatelaw geographically,inlayers(airrts, mineralrts,supportestate,etc),bytime(lengthoflease,etc),andfunctionally (easement,servitudes,etc) Restrictionsthatcameoutofbackgroundlawmeansstatuteisvalidexerciseof policepower(e.g.nuisance,necessity i.e.statesupremecourtsaysthisisa traditionalpolicepowercase,wherethelawismeanttoprotectthepublic SCOTUSsayssureOK,butitmustbesomethingthatwasarisktobeginwith he boughttheriskitmightbenuisancetypelawsuitscouldbebroughtagainstyou) Lucasv.SouthCarolinaCoastalCouncil (US,1992) Issue:statutebarredplaintifffromerectinghomesonhisbeachfrontland,makingitvalueless (2)Assumingthisisataking,isitconstitutional? Courtsayspersetakingwheneliminatesalleconomicallyviableuse Butthisdoesntmeanalluse couldcamp,etc Anddoesntnecessarilymeanallvalue b/ccourtdoesnttelluswhatvalueisleft SoLucasperserulemeans ifcantbuildanythingthatcangenerateincome,countsas eliminatingalleconomicallyviableuse Ruleprohibitingallpermanentstructuresviolatesthisperserule Butstillsomelimitationsonpropertyrights govcanstillenjoinnuisances,etc Govspowertoregulatealleconomicusenowlimitedtowhatitcouldregulatedinpublicand privatenuisancelaw iftheregulationmerelyreplicateswhatcouldhavebeenaccomplished undernuisancelaw(orifagov'timposedeasementmerelyreplicatestheaccessrightsthat alreadyexistedunderapublicprescriptiveeasement,e.g.),therecanbenotaking;nothinghas beentakenbecausethelimitationonuse/rttoexcludewasbuiltintoO'stitle Whatcountsasalimitationthatadheresintitlemustbesomehowanalogousto/as

traditionalandestablishedaspublicandprivatenuisancelaw Lucasarguablyrevivesconceptualseverancemove Mahonstillgoodlawsocourtcangobackto it(butthisisalldicta!) IfLucasrevivesconceptualseverance,wholehostofperse/totaltakingcases: Propertycanbedividedupunderstatelaw geographically,inlayers(airrts,mineralrts, supportestate,etc),bytime(lengthoflease,etc),andfunctionally(easement,servitudes, etc) Soentirecourseconceivablycomesbackinundertakingslaw WhatdoesLucastellusaboutnuisanceabatement? NotenoughforLegtosaytheyareabatinganuisance mustshowthatLucas buildingonthis propertywouldbeenjoinableasanuisanceunderpreexistingprinciples o AndherelookslikeLegwastryingtopreventharmintheaggregate o DoesntmatteranymorethatLucasactionmaycontributetoanuisance tooeasyforgov toclaimthis,somustshowindividualnuisance(atleastunderperserule) Whenliterallynuisanceabatementunderpreexistinglaw,flatoutexceptionthatwillnotbea taking o Otherwisejustgoingtobeonefactorinthebalancingtest o ButunclearhowthiswouldbeappliedifcameupinacaselikePennCentral Estlund:exceptionforrestrictionsintitleunderbackgroundprinciplesisatotal defenseofagovactionunderbalancingtesttoo Answersinitialquestion wasanythingtakenatall? SoexceptiontoLorettoandLucaspersetakings Twocategoriesofregulatorytakings 1. Physicalinvasions o Temporaryinvasions subjecttobalancing PruneYard notPPOb/cpropertywasalreadyopentopublic KaiserAetna notapermanentoccupationb/cpeoplearecomingandgoing o Permanentphysicaloccupations persetakings Loretto permanentmeansindefinite;occupationmeanstakinguplandallthetime comingandgoingisnotenough Easement(nonpossessoryuseandenjoymentofanothersproperty)vs.taking possession(Loretto) ButLucasdictahintsthatPPOmaynotbeapersetaking 2. Userestrictions Lucas perseruleforrestrictionsonlandthateliminatealleconomicallyviableuse Exceptionforrestrictionsthatcameoutofbackgroundlaw(e.g.nuisance,necessity) Butwhataboutstatutoryrestrictions(e.g.zoning,landmark) Lucas2questions 1. Whichlimitationsinhereintitle? Temporaldimension waslimitationbeingchallengedalreadyinexistence? PropertyOswilltrytoarguethatthedoctrineinquestionisnovel,socanbeanalyzed asataking(i.e.PruneYard) Courtswillstandinjudgmentonthenovelty/innovativenessofnewstateregsintakings law howdotheydetermineifnuisanceexceptionisfrombackgroundlaw? CL isthereanuisancecasethathasbannedactionbannedinregulation? Restatement balanceharmvs.utility/socialvalue ApplyingRestatement lookatparticularusethatgovwantstoenjoin Notlookingatwhatlegdidwhenitenactedreg thisisafocused,CBCanalysis basedonparticularfacts 2. Whatcountsasadenominatorfordecidingwhenperserulevs.PennCentralbalancingtest applies?