PROPERTY OUTLINE

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Table of contents 1. Personal Property a. Wild animals b. Classifying property as real or personal c. Acquiring abandoned property d. Finders rights e. Bailments f. Gifts g. Unauthorized possession and bona fide purchasers h. Accessions i. Fixtures

CHAPTER 1
Personal Property

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A. Wild animals B. Classifying property as real or personal C. Acquiring abandoned property D. Finders rights E. Bailments F. Gifts G. Unauthorized possession and bona fide purchasers H. Accessions I. Fixtures

A.Wild Animalswhat is necessary to acquire or maintain ownership rights over wild animals? RULES: PURSUIT Need more than pursuit, but can be less than actual capture. Depriving animal of its natural liberty or mortally wounding + pursuit. Distinction between animals fit for food and domestic Pierson vs Post CAPTURE To gain property rights in animals, the pursuer must show that he does not intend to abandon them to the world at large. Taking reasonable precautions against escape is sufficient to show that the purser did not intend to abandon them to the world at large.State of Ohio vs Shaw Custom in an industry can show how long property interest will last and who has ownership in order to benefit the industry. Ghen v Rich o Policy: industry might cease if fruits of ones labor could be appropriated.

ESCAPE If animal escapes, natural liberty is restored and ownership lost, unless animals are not native to a region and the subsequent

possessor knew or should have known that the animal belonged to another.--EA Stephens v. Albers MISC MATERIAL Type of actions: o Conversion (libel) or trover, the damages are limited to the value of the property, and d keeps property. o Trespass, at the end of the lawsuit, the property is returned maybe some damages. B. Classifying property as real or personalis a particular item a part of land, and therefore real property, or is it a personal property. DEFINTIONS Posession: 1)intent to possess and 2) control Real: land and property attached to land, real estate Personal property: everything else Replevin: action that seeks to have property returned RULES PERSONAL PROPERTY Item which is ordinarily considered real property because of its benefit to land, is not considered real property if the item is placed somewhere where the benefit is not realized-- Haslem v Lockwood o RULE: Value added, public good. Left for only reasonable. If one finds and modifies personal property in a way that increases its value and then leaves it with intent to retrieve, he has a reasonable amount of time to recover the property before it is considered abandoned id. REAL PROPERTY A sovereign can not recover damages for wild animals left in their natural territory and flowing through the territorial waters of the soveriegn, even though referred to as property by statute. --South Dakota v Dickinson o A sovereign doesnt own the fish. An item which was not originally part of the soil and had no prior owner is considered part of land, and therefore real property, if it is immovable.---Goddard v. Winchell

C. Acquiring abandoned propertywhen is something abandoned and what is required to gain rights to abandoned property? DEFINITION Abandoned property: Intentional and voluntary relinquishment of title. Possession: taking property in such a way that excludes other owners from it. RULES: RIGHTS To establish rights over property, one must do more than indicate desire or intent to appropriate property. Actual possession not necessary. To show occupancy or possession, one must actually take property with the intent to reduce it to possession (exclude it from other owners). o Application: could show that they changed the state in which the item was found such that the intention was acted upon

D. Finders rightsdoes a finder of lost property have rights over property and, if so, to what extent? DEFINITIONS Finder: A finder is someone who takes possession of property that had a prior owner. Possession: Possession requires a legally sufficient act of control and an intention to control. Ways prior owner ceases possession: lose, abandon, or misplace item. RULES: RIGHTS AGAINST THIRD PARTIES Finder of lost property has absolute ownership over all others but the rightful owner and may bring action of trover-- Armory v. Delamirie o Relativity of title: relative to owner the P has less rights. Relative to P, D has less rights 1st finder has more rights than second finder. Subsequent lost doesnt divest the ownership interest--Clark v Maloney

RIGHTS AGAINST ORIGINAL OWNER. Original owner has superior rights to property over all others. Once the true owners are determined, the finders possessory interest ceases, unless property is abandoned-- Ganter v Kapiloff. o Policy reasons: from policy stance, why is this? If finders win over owners, we could encourage theft as a vehicle for ownership right If finders rights could trump owner, one would need to take excessive precautionary measures and over protective of their property. This would have several economical implications The finder has more ownership rights than the original owenr when property is abandoned.no citation AGAINST THE PRIVATE LANDOWNER The landowner does not automatically have ownership rights to items unattached to the land. One must have had possession first to make claim.Hannah vs. Peel.at odds with common law The landowner takes in case of mislaid property.Mcavoy vs medina

RIGHTS

o STATUTORY REFORM: p. 13 supplement. Finder must give to true owner, police, or owner of premises. If true owner not found in 6 months, goes to finder. MISCELLANEOUS CONCEPTS Trover: action to recover the cost of property. This is an action filed when unlawful conversion of property. Embedded property: property other than gold or silver that is buried under circumstances indicating the owner will not return. Treasure Trove: property not lost or mislaid because the owner intended to put it where it is found for safe keeping (money or coin, gold silver, plate or bullion) antiquity so old owner can be assumed dead LAW OF FINDS o Initially applied only to maritime property o Applies to sunken property that has been abandoned o Owner must take possession

o Once takes possession, the owner has complete title over it, even over the original as the abandonment forfeited rights LAW OF SALVAGE o No rights of title, only rights to compensation o In order to assert salvage claim 1. marine peril 2. salvage service must be voluntary 3. salvage must be successful o constructive possession: is when they seek maritime lien avoiding questions of title until they aare in possession. Once in possession they seek exclusive rights against all others except true owner, despite the passage of time. This is diff than law of salvage which normally extends no rights of title only rights of recovery.

E. BAILMENTS whether a bailment was created and if so, what is the standard of care and who has the burden of proof? DEFINTIONS Bailment: A bailment is the transfer of possession of personal property to a person who is not the owner and for limited purpose. Requirements of bailment: delivery and acceptance o Delivery: full transfer, either actual or constructive, so as to exclude it from the possession of owner and all other persons for the time being. o Acceptance: act of control over property. *intent to possess (ex. Car, not belongings within) Bailor: owner of property Bailee: recipient of property

RULES: PARK AND LOCK BAILMENT: o A bailment is created when the lot is attended and other circumstances indicate that the Bailor has reason to believe its car will be protected against possession of others. LICENSE

o ticket indicating that the P was only receiving a license to use doesnt create a bailment when the ciscumstances are such that the P should have known the lot made no effort to exclude others from possessionellis vs airport BURDEN OF PROOF: BAILMENT o P has initial burden to prove that a bailment was created o Establishing a bailment existed implied that there was both a duty and a negligent act . statutory presumption of negligenceAllen vs Hyatt (attended lot) o D then has burden to prove lack of negligence. NO BAILMENT/LICENSE o P has burden to prove that there was negligence. POLICY: o by placing the burden to prove absence of negligence on bailee it gives them an incentive to excersice due care. o The bailee is has the necessary facts about the whereabouts of the property and cannot claim ignorance. Bailee in best position to absorb loss, secure property. Want to discourage

fraudulent misdeliveries. o Ticket indicating that the P was only receiving a license to use doesnt create a bailment when the ciscumstances are such that the P should have known that no STANDARDS OF CARE: The bailment benefits (Peet vs Roth Hotel): o Bailor-gross negligence o Bailor and Bailee-ordinary negligence o Bailee- slightest negligence LIMITATIONS OF LIABILITY; The liability limitation may be held to be valid if it is clear or understandable POLICY: GENERAL LIABILITY RULE: measure of damages is fair market value of item that was lost. From a policy strandpoint, this limitation contradicts the general rule that bailees are liable for up to the market value. Conversly,

the bailees are willing to perform service limiting their liabitity because if the economic burden is too high it may deter people/companies from entering this industry. STATUTES that limit liability: o CAL CIV CODE: This applies to all bailees and says that liability can not exceed the amount informed by the depositor the thing deposited to be worth. o MINNESOTA STAT This applies to a class of bailees and says no liability unless innkeeper failed to take custody of them. And in cases of liability, the liability is limited to $1,000. F. GIFTSwhether a gifted item satisfied all criteria to be considered either a valid inter vivos or causa mortis gift. TERMINOLOGY Types of gifts: inter vivos or causa mortis Components of inter vivos gift: o 1. Intent: must be present intent to give a current or future interest. furutre interests subject to condition precedents fail to show present intent. o 2. Delivery: actual or constructive. Delivery is complete when donor gave up control and cannot revoke it. Actual: physical delivery. Impractical when delivery is for a future interest, when immovable, or when intangible. Constructive: Means donor has given over control or posession to donee. You dnt physically transfer items but u hand over key. Symbolic Something that gives document to show the transfer APPLICATION/POLICY REASONS It makes no sense to require physical delivery when the condition of title was that transferor would keep possession

American courts are more skeptical of using deeds in lieu of active delivery Why emphasis on actual delivery? Evidentiary: it removes ambiguity Cautionary: actual delivery reinforces in donors mind that this is a gift and this act of giving away makes donor reconsider gift. o 3. Acceptance: because of benefit to donee, the gift is presumed to be acceted. Components of a Causa Mortis gift: o 1.intent o 2. Must be of personal property, o 3. Gift must be made while owner is under a realistic apprehension of eminent death, on irrevocable condition that gift will belong t donee as long as donor dies, POLICY REASONS This exists because if it is not immeneint they want people to make gift in will in order to reduce issues of evidence. In will there is a requirement of witnesses. Without will, there is a risk of fraud, theft, undue influence. STATUTORY CHANGES: New hampsihie statute requires that there be 2 witnesses in order to reduce evidentriary concerns o 4. Possession of property must be delivered to donee, or his agent, at the time of the gift and it must be accepted.

RULE INTER VIVOS GIFT There must be a deed or instrument of gift or a change in possession. Actions being so far from the date of contract can not be attributed to that contract. Irons vs. Small Piece A valid inter vivos gift of a chattel may be made where the donor held a life estate in the chattel and gifted a future remainder to the donee, even though the donee never had physical possession of it before donors death.Gruen vs Gruen

o Gifting a future interest is valid if the future interest is of such character that is shows a present intent. Condition precedent is not valid for showing present intent. I give to A if A gets a haircut next week Condition subsequent is recognized as showing present intent. I give 100 to A, but if a does not get a haircut, this is void. CAUSA MORTIS GIFT Undergoing a dangerous surgery may be sufficiently imminent to consider gift a causa mortis gift, unlike where a soldier is going to warcooley vs. walker.

G. Unauthorized possession and bona fide purchasers TEST A bona fide purchaser is one who o 1. Pays valuable consideration o 2. Has no notice of outstanding rights of others and o 3. Acts in good faith RULES Nemo dat quod non habet: No one can convey what he doesnt have. o This rule is too heavy when applied to personal property because there arent titles like in real property. Exception created to provide relief to buyer who pays good money and is a bona fide purchaser. BONAFIDE PURCHASER Bona fide purchaser acquires good title even though seller procured it through fraud. However, one can fail the test of bona fide purchase if her failed to inquire into discrepancies that would have put a reasonably prudent purchaser on notice as to the validity of the title. Landshire vs Coghill 3 scenarios in which bona fide purchasers win; 1. fraud o in fraud, voidable title can ripen into good title

POLICY:

2. entrustment o if you entrust an item of personal property to someone, you create a bailment. But the UCC section contradicts the common law principle. if bailee is a merchant, the merchant has a voidable title if he deals with goods of his kind. this is so because a consumer should be able to rely on the merchant. 3. money and negotiable entrustment. o Not burden of innocent haver to check money. This protects bona fide purchasers in order to promote the free transferability of property in commerce. Do not want to put undue burden on consumers to do recon on every item of purchase.

H. ACCESSIONS-- In accession the issue is whether item can be separated without damage to the principal part. DEFINTION: Accession- it is the doctrine that vests in a single person the ownership of produdcts that are not severable into their component parts or shares. How does accession occur? o The incorporation of goods has to be such that the component goods could not be recovered or could be recovered only at a substantial economic cost o Severability concept as seen here is also seen in specification or confusion Specification: o Application of labor to a thing or substance to create a new product. o Labor is inseparable, title to the whole of the new profduct is always either in the laborer or the owner of the original thing Confusion: o Is the combination of similar substances or things into a uniform mass such that the such that the identities of the original things are lost

o No need to create title because infinitely divisible. Thus, owners of the original substance will own the mass in common in proportion to their respective shares. RULES COMMON LAW The common law rule of accession is that when the goods of two different owners are incorporated together, the title to the resulting product goes to the owner of the principal goods. Where the original object can be traced title does not transfer unless the value of what has been expended upon it is sufficiently great to make it an injustice so gross and palpable to place title with original owner BLACKSTONE Blackstone says that doctrine of accession was grounded in right of occupancy. This is important because title by occupancy precluded joint ownership of the combined substances. PRINCIPLES OTHER THAN SEVERABILITY Equity principal in accession: o If security interest, property or functional necessiteies added to object are presumed to benefit the secured party. o However, if the added object is owned by a third party, it will not be conisedered acceded to the principal object. o The rationale is that the third party, unlike the debtor, has no obligation to maintain the secured partys interest. Detrimental reliance o The courts will conclude that a severable part was an accession to protect the interest pf [erspns who detrimentally rrelied on the apparent association of those parts. o No court decision.. this principle is found in the UCC.

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