Five Reasons to Protect Property Interests 1. Protect first possession • Encourage discovery • Certainty (clear bright line rule) • Public Safety (Less Conflict) 2. Encourage labor • When property itself is not valuable but it becomes valuable when labor is invested in it (farm/wasteland) 3. Maximize societal happiness • Incentivize socially useful conduct (Hunting of nuisance animals, discouraging vandalism) • Coase Theorem- property ends up with the person who values it most highly (bidding war) • Utilitarianism – looking at society with goal of maximizing amount of social happiness 4. Ensure democracy • Property ownership protects ones independence from the state and gives person a stake in society that leads them to make decisions in line with public good (ex. Law firm partnership, uniform basic income/living wage, waterfront property owner voting for costal conservation) 5. Facilitate personal development • Using ones assets as one wishes is a part of human dignity or personhood (family heirloom or homestead, wedding ring or photograph) Rule of Capture Pierson v. Post (Plaintiff Post – Hunts Defendant Pierson – Kills) Animus revertendi (with intention to return/domesticated animal); ferae naturae (wild animals) Opinion: Majority says you need CERTAIN CONTROL of the animal to claim it. Mere pursuit is not enough. Need to mortally wound or trap. If you mortally wound an animal and are pursuing it, someone else cannot intercept the animal Dissent: You just need a reasonable prospect of taking the animal to claim it Use of Likeness White v. Samsung Electronics America, Inc. 1) Cal Civil Code Section 3344 (use of likeness) a. Does this amount to an impersonation? 2) California common law right of publicity a. Defendant’s use of plaintiff’s identity b. Appropriation of plaintiff’s name or likeness to defendant’s advantage c. Lack of consent d. Resulting injury 3) 15 USC 1125(a). This is the Lanham Act, which protects Trademarks Opinion: Samsung appropriated White’s identity bcuz it was clear that the robot was supposed to be her Constitutionality of Punitive Damages Court can add punitive to nominal damages, trespass is a strict liability offense. Look at 1.) degree of reprehensibility of defendants conduct 2.) disparity between potential and actual harm suffered by the plaintiff and punitive award 3.) differences between punitive damages awarded by the jury and the civil penalties in other similar cases -Punitive damages can be awarded even if there are no actual damages, not significance of right to exclude (VARA) Moral rights of artists include the following: (and end when artist passes away, can be waived as well, apply only to visual art, not to performance art) 1. disclosure or divulgation, which allows the artist to determine when a work is complete and may be displayed; 2. paternity or attribution, which allows an artist to protect the identification of his name with his own work, and to disclaim it when applied to another's; 3. the right of withdrawal, which permits the artist to modify or withdraw a work following publication; and 4. integrity, which allows the artist to prevent his work from being displayed in an altered, distorted, or mutilated form. Conversion(Moore, Cell Case) A conversion occurs when a person without authority or permission intentionally takes the personal property of another or deprives another of possession of personal property Rationae Soli Latin phrase meaning "according to the soil" or "by reason of the ownership of the soil." In property law, it is a justification for assigning property rights to landowners over resources found on their own land. Adverse Possession Gurwit v. Kannatzer (wooded land case) – common law test; 10 year AP period Van Valkenburgh v. Lutz (Crazy guy waving pipe case) – statutory test (i.e. Florida); 15 year AP period, actual possession, enclose and improve Fulkerson v. Van Buren (land cleared up and used for church) – state of mind (need bad); 7 year AP period Common Law Elements of Adverse Possession 1) Actual (type of conduct) – You must use the property like a reasonable owner would, which depends on the character of the land. 2) Exclusive – no one else is using it. 3) Open and Notorious – visible and obvious, such that the owner would notice if a reasonable inspection were made. 4) Adverse and Hostile – this element is understood in different ways by different jurisdictions, but all jurisdictions agree that possession with permission fails this element. (Majority of jurisdictions say state of mind is irrelevant) 5) Continuous -- frequency of conduct must match up w nature of the property (can’t just use it once a year) 6) For the statutory period (7 yrs in FL) In a close case, the adverse possessor loses You cannot get adverse possession against government entity Justifications for Adverse Possession -Stops frivolous claims -Encourages development -Protects Personhood -Corrects title defects Likeness Tests -Predominant use test: whether or not the predominant use of the work is to exploit the commercial value of the individuals identity or if it’s to make an expressive comment -Rogers Test: Is celeb reference a pivotal part of the work or something small/a coincidence? -Transformative Use Test: does product containing a celeb’s likeness so transformed that its more defendants expression rather than celebs likeness? Four Key Property Rights Four Key Property Rights 1) Right to transfer (Johnson (Indian Case), Moore(Cell Case)) – sell the pelt, assign royalty rights. 2) Right to exclude (Jacques, Shack) – my pelt, not yours; you can’t use my identity 3) Right to use (Sundowner, Prah(use of sunlight case)) – make something of the pelt, decide what to endorse 4) Right to destroy (Eyerman(Dead Lady)) – ruin the pelt if I wish, ruin my reputation if I wish. State v. Shack Farm workers have acquired a license to allow others to enter the land, so long as this does not interfere with a legitimate interest of the landlord. Spite Fence Sundowner Test: 1.)“Otherwise useless structure” constructed 2.) “solely for the purpose of injuring another.” Dowdell Case: Fence or other structure in nature of a fence, unnecessarily exceeds 6 feet in height, maliciously erected for the purpose of annoying neighbor Key facts to take from the Eyerman case: (if all are present a court may step in and block destruction) - Valuable asset - Person giving the orders is deceased - No apparent reason given - Negative effect on third parties (ex. Loss of property value) Elements of Private Nuisance from the Restatement 1) Intentional (Must intend to do conduct and be aware that harm is likely, doesn’t need to intend to cause harm) 2) Nontrespassory 3) Substantial interference 4) Injury to use and enjoyment of land. 5) Unreasonable (more harm than good?) Adverse Possession in Florida • Actual • Continuous • For the Statutory period (7 years) • Open and Notorious • Exclusive • Hostile and adverse – state of mind does not matter except under “color of title” claim CAN BE ONE OF TWO TYPES: • Color of title (“some sort of title”) – often a defective deed. - Claimant must genuinely believe this document to be the correct claim of title. - Must record a deed purporting to vest title in the adverse claimant. - Must cultivate, improve, or enclose the land (typically via fence). •“Without color of title” – must have paid property taxes. Must also file a return within 1 year of entry onto the property with a full and complete legal description. Must cultivate, improve, enclose, occupy, or maintain the land Color of title is typically a good faith claim, w/out it, a bad faith claim When making an AP claim in FL, must also meet the common law elements Personal Property State v. Shaw (fish): Bring into one’s power and control, and so maintain that control as to show that he does not intend to abandon them again to the world at large. Confine and maintain reasonable precautions . . . Popov v. Hayashi (Barry Bonds): Significant steps interrupted by unlawful acts result in qualified pre-possessory interest in right to possession. Rule of Finding/Finders: 4 categories of lost chattels 1. Lost – owner unintentionally and involuntarily parts with it. (Armory(Chimney Sweep), Hannah(Broach Case) – finder has rights against all but true owner (Special case of landowner)) 2. Mislaid – owner voluntarily and knowingly places it somewhere but then unintentioanlly forgets it (McAvoy(Barber/Purse), Benjamin(Plane) – property goes to owner/possessor of locus in quo) 3. Abandoned – owner knowingly relinquishes all right, title, and interest to it (Popov(Barry Bonds), Haslem(Manure) – goes to first possessor after abandonment (requires specific facts showing abandonment or goods without inherent value) (special case of landowner)) 4. Treasure Trove – owner concealed it in a hidden location long ago. Usually limited to gold, silver, coins, or currency (goes to finder (seldom used) (Special case of landowner)) Armory v. Delamirie - Finder of a lost item has superior right over everyone but a prior possessor. Trover- common law action where the plaintiff seeks damages for the wrongful taking of personal property. Replevin is a lawsuit to recover possession of personal property Policy Considerations Lost property - -true owner will have a hard time finding, but we preserve those rights, just in case. Mislaid property – true owner is most likely to find; rule tries to make it most likely that true owner can get the property back. Abandoned - - true owner doesn’t want the property, so no concern for those rights. Treasure trove – we assume true owner cannot be found due to passage of time. Tragedy of Commons – Cap and trade is a good system for emissions Patent (Diamond v. Chakrabarty(Gene)) Works of inventors, Constitution, 20 years from date of filing app., Does not exist until application granted Elements of Patent 1) Patentable subject matter - -machine, process, manufacture, or composition of matter. Abstract concepts, mathematical algorithms, scientific principles, and physical phenomena cannot be patented. 2) Utility – actual benefit (but only minimal benefit is required) to humans. Rarely an issue. 3) Novelty – is it new in any way, looking at prior art (all inventions, patents, publications, and the like) – even if just one element out of 10 is new, it is novel. 4) Nonobviousness –would the move from prior art to this be obvious? (if differences between the invention and prior art before the application date would have been obvious to a person having ordinary skill in the area, the application will be denied) 5) Enablement - -application must be very detailed so that any skilled person in the area to which the art pertains can make and use the same. Adverse Possession of Personal Property(Reynolds, violin) 1) Actual (nature of possession) 2) Open and notorious 3) Exclusive 4) Adverse and hostile 5) Continuous 6) For statutory period (15 yrs for Florida)(runs from the time when the TO knows, or by exercise of reasonable diligence should have known, facts sufficient to bring suit) (concealment stop SOL and keeps adverse possessor from being able to quiet title) Additional considerations: Good faith requirement since AP not intended to reward theft? O’Keefe Rule of Due Dilligence? Inter Vivos Gift (No payment) 1) Donative intent – intending to make an immediate transfer of property 2) Delivery - -donor parts with dominion and control Manual delivery – transferring possession of the thing itself. Required if practicable. Constructive delivery – physical transfer of some item that provides access to the gift (a passcode, a key, etc.) Symbolic delivery – represents or symbolizes the gift (shares of stock). 3) Acceptance – presumed when valuable. Testamentary gifts are invalid Gift Causa Mortis (Brind(Jewelry,surgery) court formulation) (1) Must be made in contemplation, fear, or peril of death; (2) Donor must die of the feared illness; and (3) Delivery must be made. Another formulation (more modern) 1. Donative intent 2. Delivery 3. Acceptance (Assumed where object is inherently valuable) 4. Anticipation of Imminent death These are revocable gifts – generally deemed revoked automatically if the donor does not die of the feared illness. Minority rule – must expressly choose to revoke, and do so within a reasonable time of recovery. Trademark (Qualitex(Color), Mattel(Barbie)), Distinguishes wares of a particular seller, state law and Langham act, can exist without limit, can register § 1127 of the Lanham Act: trademarks “includ[e] any word, name, symbol, or device, or other combination thereof.” Wont register immoral, deceptive, or disparaging marks. Elements of Trademark: 1) Distinctiveness – note that there is a spectrum of distinctiveness on page 291 • Arbitrary or fanciful – strongest – Apple (name tells us nothing about the good or service). • Suggestive – middle – Jelly Belly • Descriptive – weakest – America’s Best Contacts and Eyeglasses (only if secondary meaning is also established in order to prevail. “This would mean that consumers would think of Sutton’s services specifically and not dog-training services generally upon hearing the phrase.”) (also Coca-Cola!)(Color) 2) Non-functionality – can’t be some aspect of the product that is part of its function (instead, those things are covered by patent law). 3) First use in trade – must define what the trade is. (The first person, to use a mark for a good or service in a particular geographic market generally obtains rights to use the mark in that market, unless another person has already registered the mark.) Copyright (Feist(Phonebook), Selle(BGs), Cheny Bros.(Patterns)) Works of authorship, constitution (Article I, Section 8, Clause 8), life of author+70 Years(Eldred v. Ashcroft Case), Can Register 17 USC Section 102(a): 1) Originality – independently created, not copied, with at least minimal creativity. 2) Work of authorship – 8 specific categories but others may qualify as well, if they are seen as analogous. a. Literary b. Musical c. Dramatic d. Pantomime or choreographic e. Pictorial, graphic, sculptural works f. Motion pictures and a/v works g. Sound recordings h. Architectural works 3) Fixation – written, recorded, or otherwise embodied in some physical form that is sufficiently permanent and stable. (Ice Sculpture is enough) Fair Use Factors (Harper v. Roe(President Ford)) 1.) purpose of the work claiming fair use (news or public vs. commercial use) 2.) type of work; more difficult to show fair use of fiction than nonfiction 3.) amount of copyrighted material used 4.) possibility of damage Elements of Copyright Infringement (strict liability, good faith is not an excuse) 1) Valid copyright 2 Defendant actually copied Plaintiff’s work; and 3) An ordinary observer would conclude that the Defendant’s work was substantially similar to the Plaintiff’s work. Elements of trademark infringement: (1) valid trademark and (2) likelihood of confusion. APPLIES TO ALL 3 Similarities: All first in time, regulated by federal law, give holder right to exclude Differences: Purpose (copyright and patent for creative labor, trademark for protecting consumers from deception and to encourage quality goods), Origin, length of protection Start with assumption that you do not have a protectable property interest Six modern freehold estates 1) Fee simple absolute–All of the rights in the land a. “To A” – words of purchase b. “and his heirs” - -words of limitation This estate is presumed. It is alienable, devisable, descendible. 2) Life estate – You own present interest but someone else gets it when you die a. “To A” – words of purchase b. “For life” - words of limitation Not presumed but language need not be perfect. It is alienable, not devisable, not descendible. 3) Fee tail - You own present interest but your family might lose it in the future a. “To A” – words of purchase b. “And the heirs of his body” – words of limitation Lasts until line of descendants runs out Disfavored. Even where allowed, language must be perfect. It is alienable, not devisable, descendible. 4) Fee simple determinable a. “To A” – words of purchase b “So long as, while, until, during” – words of limitation Automatic, back to grantor. It is alienable, devisable, descendible. 5) Fee simple subject to a condition subsequent a. “To A” – words of purchase b. Provided that, but if, on condition that” – words of limitation Not automatic, back to grantor. It is alienable, devisable, descendible. 6) Fee simple subject to an executory limitation a. “To A” – words of purchase b. So long as, while, provided that, but if. . . .” – words of limitation Automatic, to third party. It is alienable, devisable, descendible. Magic Words for Estates - Fee Simple Determinable “So long as, while, until, during” NOTE: Estate ends automatically upon occurrence of event and grantor retains future interest Ex. “To B and his heirs so long as the land is not used as a nightclub” (If the land does get used as a club, B retains poss.) - Fee Simple Subject to a Condition Subsequent “Provided that, but if, on condition that” NOTE: may be terminated at the election of the grantor when a certain condition or event occurs Ex. “To E + her heirs provided that alcohol is never served on the premises” - Fee Simple Subject to an Executory Limitation “So long as, while, provided that, but if” NOTE: automatically ends and goes to third person Ex. “To C + her heirs, but if Boston becomes a state, then O’s heirs have the right to re-enter and retake the estate” Present and Future Interests Life Estate: Estate: Life Estate Future interest: Reversion in Grantor or Remainder or Executory Interest in third party Fee Tail: Estate: Fee Tail Future interest: Reversion in Grantor Fee Simple Determinable: (Ends Automatically) Estate: Fee simple determinable Future interest: Possibility of reverter Fee Simple Subject to a Condition Subsequent: (Does not end automatically) Estate: Fee simple subject to a condition subsequent Future: Right of entry (a.k.a. power of termination) Fee Simple Subject to an Executory Limitation: Estate: Fee simple subject to an executory limitation Future interest: Executory interest. Fee Simple Defeasible is an umbrella term used to describe a fee simple that might last forever or that may end upon the occurrence of some event in the future. Term of Years: (Leasehold) estate: Term of Years Future interest: Reversion in Grantor or Remainder or Executory Interest in someone other than Grantor It is alienable, devisable, descendible. To B for life, then to D’s children. D is deceased and had children. B’s estate: Life estate D’s children’s future interest: Indefeasibly vested remainder. To B for life, then to D’s children. D is alive and has no children. B’s estate: Life estate D’s children’s estate: Contingent remainder O: ReversionT o G for 10 years, then to M and her heirs. G’s estate: Term of Years M’s future interest: Indefeasibly vested remainder in fee simple absolute To G for life, then if M marries, to M and her heirs. G’s estate: Life estate M’s future interest: Contingent remainder in fee simple absolute O’s future interest: Reversion in fee simple absolute To G and her heirs so long as the land is used as a hospital, then to M and her heirs. G’s estate: Fee simple subject to an executory limitation M’s future interest: Shifting executory interest in fee simple absolute O has no interest remaining, because the interest will be held by either G or M To M and her heirs one week from today. O’s estate: Fee simple subject to an executory limitation M’s future interest: Springing executory interest O conveys “to A for life or until he has a son.” A has Life estate determinable (words of duration tell us estate can come to an end) O has reversion and possibility of reverter O conveys “to A and her heirs, but if A does not enter law school, then the property shall revert to O.” A has Fee simple subject to a condition subsequent O has right of entry Future interests retained by the transferor: 1. Reversion – follows smaller vested estate such as life estate, fee tail, or term of years that has been carved out of a larger vested estate. 2. Possibility of reverter – follows FSD and arises automatically upon happening of stated event 3. Right of entry – follows FSSCS but does not arise automatically upon happening of stated event. Future Interests Created in a Transferee: 1) Remainder: Capable of becoming possessory immediately upon expiration of the prior estate AND does not divest any interest in a prior transferee (“waits patiently” • Vested remainder: (1) created in an ascertainable (living) person and (2) no condition precedent. -Indefeasibly vested remainder -- A remainder in an identifiable person that is certain to become a possessory estate at some point. -Vested remainder subject to divestment – A vested remainder subject to a condition subsequent. (Could be divested – lost) -Vested remainder subject to open- A vested remainder that may be shared among a larger group in the future. •Contingent remainder: either (1) not created in an ascertainable (living) person; or (2) subject to a condition precedent 2) Executory interest: Any future interest created in a third party that is not a remainder. Springing – if it follows an interest in the grantor Shifting – if it follows an interest in a third party. O conveys “to John and his heirs until Abby graduates from law school, then to David and his heirs.” John has fee simple subject to executory limitation David has shifting executory interest O conveys “to A for life, then one day after A dies, to C and his heirs.” A has life estate O has reversion subject to executory limitation C has springing executory interest O conveys “to A for life, then, if B gets married, to B and his heirs so long as B stays married.” B has never married. A has a life estate B has contingent remainder in fee simple determinable O has reversion + possibility of reverter (most jurisdictions collapse this into reversion) O conveys “To A for life, then to A’s children who shall reach 21.” None of A’s children have reached 21 at this time. A has life estate A’s children have contingent remainder O has a reversion O conveys “To his children who reach 21 and their heirs.” O has two children, X, who is 15 years old, and Y, who is 25 years old. Children given present possessory interest, Y has already qualified but may be divested, X does not wait patiently Y has a fee simple subject to executory limitation X has shifting executory interest The doctrine of destructibility of contingent remainders is a special doctrine that applies only to contingent remainders that immediately follow the present possessory interest. This means that, if the contingent remainder has not vested by the time the prior estate ends, it will be destroyed, and we just move on to the next interest. The Rule Against Perpetuities (Jee v Audley) No interest is good unless it must vest, if at all, no later than 21 years after some life in being at the creation of the interest. The Rule Against Perpetuities applies only to Contingent remainders, executory interests, and vested remainders subject to open. The Litany of Questions: What interests exist? Can the interest possibly vest more than 21 years after all of the lives in being die? Yes. O and B can’t be validating lives because there is no reason to think that the interest will necessarily vest or fail within 21 years of their death. Their deaths are simply irrelevant to the vesting of the transfer. And the law conclusively presumes that M can have children until the day he or she dies, and if he or she has a first child under 9 years old at death, that child will turn 30 more than 21 years after M dies. So what happens? The contingent remainder is void, so we remove it. That means B has a life estate and O has a reversion. The interest of M’s children just goes away. Tenancies – Concurrent Ownership Estates 1) Tenancy in common “to A and B as tenants in common” -This is the default concurrent ownership estate No specific language is required to create this one. vested? - Each has right to use+ possess the whole parcel, even Who are the relevant lives in being at the creation of the if fractional interest isn’t the same (ex. A owns 1/3, B interest? (Start with the persons named in the transfer, and owns 2/3 both can use + possess whole parcel) include anyone else who is relevant to the gift.) -If one tenant in common dies, that person’s interest Can the interest possibly vest more than 21 years after all of goes to that person’s own heirs – not the other tenant the lives in being die? in common. -Alienable, divisible, descendible RAP Example 2) Joint tenancy – “To A and B as joint tenants with rights of “To B for life, then to M’s first child to reach 30.” Assume M is childless. survivorship.” (Survivorship must be clear) (for siblings) What interests are created? If one joint tenant dies, the other joint tenant becomes the B’s estate: Life estate sole owner. (Right of survivorship) M’s first child to reach 30’s future interest: Contingent remainder A joint tenant’s interest can’t be left to someone else by will O’s future interest: Reversion (devisable) or transferred by intestacy (descendible). If any interest is contingent, why is it contingent? Severance if one joint tenant transfers her interest M doesn’t have any children, so M’s children are unascertained Severance occurs if the 4 unities cease to exist persons, and there is a condition precedent they have to satisfy once This has certain requirements: born – turning 30. What has to happen for the contingent interest to become vested? -Time – the joint tenants must acquire their interest at M must have at least one child who reaches the age of 30. same time. Who are the relevant lives in being when the interest is created? -Title – they must also acquire their interest by same O, B and M instrument O is a life in being because this is a conveyance rather than a devise. B is -Interest – must be equal in size and duration a life in being because B is mentioned in the transfer. -Possession – each must have the equal right to use and M’s children are not lives in being because none currently exist. enjoy the whole property M is a life in being even though the conveyance would be to M’s children, because M can have no children without M being involved either legally or biologically. Lesson: So you don’t have to be named in the transfer to be a relevant life in being, if you are necessary to some interest that is created! MARITAL PROPERTY Separate Property System (Equitable distribution) (Used by most states Including Florida) Community Property System (Used by 9 States) Prior to Marriage Items don’t become marital assets Not part of the definition of community property During Marriage Assets are separately owned by acquiring spouse Earnings belong to the wage earner Almost everything acquired during marriage is community property by either spouse (owned by both spouses equally) At Divorce Equitable distribution of marital assets (Courts divide property in just and fair manner taking into account income, age contributions during marriage, health, standard of living among other things) Court will start with the premise of a 50/50 distribution of the assets. Community property is allocated equally or equitably (some states do 50/50 split, some do equitable distribution) Surviving spouse can take what’s provided in the will, OR Take forced/elective share (typically a 1/3 or 1/2 share) (FL does this) Surviving spouse keeps their half of community property, decedent can either leave half to the surviving spouse or do as they wish. At Death If time, title, or interest is missing, it becomes a tenancy in common Each joint tenant owns property in equal share (same %) Leases (Neithamer(FHA aids case), Roomate.com(no FHA protection in roommates choosing)In Re Clark(gross housing)) Right to use – LL has mostly given this up Right to exclude – LL has given this up, by letting T in. Right to transfer – LL can still sell the property. Right to destroy – not during the life of the lease! Remedies include suing for all rent, terminating lease, mitigating damages and then suing for rent, and in Florida you can get liquidated damages Sommer (abandonment case): landlord that keeps lease in effect after abandonment can’t recover damages that could’ve been mitigated, but can seek expenses of finding new tenant Statute of Frauds (SM1LES) Sale of goods for $500 or more Marriage 1 = 1 year (contracts over a year long) Land Executor or Administrator of an estate Suretyship * Needs to be memorialized in writing to protect against fraud – don’t want ppl to be held to a promise they didn’t make Delivering Possession (Keydata(Nasa Case)) American Rule: landlord merely covenants that possession will not be withheld by himself or by one having paramount title. English Rule: when the lease is silent on the point, the landlord must deliver actual possession of premises at beginning of the term Partition (Akrland (mining company) Any TIC or Joint Tenant has right to sue for partition of prop Partition in Kind: Leaves cotenants holding the same estates as before and it does not force a sale on unwilling cotenants Partition by Sale Factors: 1) property cannot be properly partitioned in kind 2)one party’s interest would be promoted by sale, 3) no parties interest would be prejudiced by sale Esteves Rules-Everyone must pay fair share of operating expenses, no occupancy charge is allowed, upon sale there should be a credit allotted to the party who has solely occupied the premises Doctrine of Waste(Woodrick(barn case)) - Common Law, none allowed, Woodrick says waste is only disallowed where it reduces value of property -Voluntary Waste: Results from an affirmative act that significantly reduces the value of the property (Demolishing Valuable House) -Permissive Waste: Results from failure to take reasonable care to protect the estate (failing to make minor repairs or pay property taxes) -Ameliorative Waste: results from an affirmative act that leads to a substantial change in the property and increases its vale(building pool) 3)Tenancy by the entirety –only for married couples -Created by “four unities plus marriage.” - in FL married couples’ tenancy by the entirety is presumed. -Has a right of survivorship like Joint Tenancy. -Severed only by death, divorce, or agreement of both parties. -Neither spouse can alienate their property from the other (creditors cant get it) - Guy Case(Marital Property does not include Intellectual enhancements) -Obergefell (Same Sex) CONSTRUCTIVE EVICTION -Wrongful conduct (or lack of action/omissions) by the LL that substantially interfered with the tenant’s beneficial use and enjoyment of leased premises -Must actually causes tenant to leave w/in a “reasonable” amount of time -Procedural steps: T must notify LL about the problem give LL reasonable period of time to fix problem then vacate the premises (w/in a reasonable amount of time) -Wrongful OMISSIONS 1.) fails to perform obligation of lease 2.) fails to adequately maintain and control the common area 3.) breaches a statutory duty owed to the tenant 4.) fails to perform promised repairs 5.) allows nuisance like behavior. -Wrongful CONDUCT 1) Blocking access to T’s premises 2) Creating a nuisance that affects the T 3) Harassing the T’s customers 4) Repeatedly trespassing on the T’s premises CONSTRUCTIVE EVICTION TESTS: -Fidelity Test: (use for LL omissions) 1. One can infer from the circumstances that LL intended that the T no longer enjoy the premises 2. LL’s material omissions substantially interfered w T’s use + enjoyment of the premises for the purpose for which the premises had been leased 3. LL’s material omission permanently deprived T of the ability to use + enjoy premises (look to frequency of it occurring) - Doesn’t require that something has to happen every day -Fidelity: protestors every Sunday was sufficient to meet this 4. T actually abandoned premises w/in reasonable time after the LL’s omission -Common Law Test: 1. Wrongful conduct 2. By the LL 3. That substantially interferes w T’s use + enjoyment of land 4. T must vacate the premises Retaliatory Eviction (Gilbert(electrical system repairs) Traditional rule: LL cant terminate for any reason, now limited, can’t terminate in violation of FHA or retaliation of tenant exercising their rights Modern Rule: if tenants exercising rights is material/substantial reason for lease termination, not allowed (in FL it is primary reason) There are three main types of land descriptions: 1) Reference to subdivision map 2) PLSS land description (Public Land Survey System) 3) Metes and bounds Insurable interest exists throughout this period Eviction in Florida 1) Deliver notice of termination for failure to pay rent (In person or by mail.) 2) Wait three days after delivering notice (for nonpayment of rent); 7 days for other violations of lease 3) File an eviction complaint with county clerk 4) Provide service of summons to the tenant (can use private process server or sheriff) 5) Tenant has 5 days to answer a) If T pays rent and LL still wants them out, have to schedule a hearing b) if T does not respond, request default judgment 6) Go to court if hearing required. If LL wins, T usually gets 24 hours to vacate. Eviction (Berg(restaurant eviction) NO MORE SELF HELP ALLOWED Contract signed Title and Risk of Loss pass Cancellation period Caveat Emptor (Buyer is Responsible) buyer is expected to make reasonable investigations about conditions of the property Exceptions to Caveat Emptor: 1) affirmative misrepresentation 2) active concealment 3) fiduciary duty Stambovsky rule: (Ghost Case) Title Assurance: Title Covenants: the grantor promises in the deed that he has good title to convey Title opinion based on search of public records: an attorney or other professional renders an opinion about the state of title after searching public land records Title Insurance: Title insurance company issues a policy that insures the grantees title Lady Bird Deed(Transfer on Death or beneficiary deed) The grantor retains complete control over the property while alive – can mortgage or sell it without anyone’s permission (unlike standard LE) but the land is transferred automatically without probate at death. 6 Standard Covenants: Present covenants (clock runs at time of closing): 1. Covenant of seisin – you own what you claim to own 2. Covenant of right to convey – you are able to sell what you claim you can sell 3. Covenant against encumbrances – there are no encumbrances not already disclosed in the deed. Future covenants (Clock runs in the future): 1. Covenant of warranty – you will defend the title against anyone who raises a claim 2. Covenant of quiet enjoyment – possession won’t be disturbed by someone claiming superior title. 3. Covenant of further assurances – you will cure any title defects at closing. Mortgage: -Lender gives loan, borrower executes promissory note, and obligation is secured by a mortgage that allows the lender to foreclose on the property in the event of default. -Judicial foreclosure is required. -Borrower has title and possession of the property unless there is foreclosure. -Florida is a mortgage-only state. Deed of Trust: Lender gives loan, borrower executes promissory note, and borrower transfers his or her interest in the real property to a trustee who holds the interest unless/until the note is paid. -No need for judicial foreclosure because the debtor doesn’t have title to begin with. -Instead, throughout the life of the loan, the trustee holds a power of sale to be exercised upon default. -Trustee has title and borrower has possession unless there is a default, in which case the trustee delivers title and possession to the lender. The debtor has only equitable title until the note is paid. Installment land sale contract: (Not recognized in FL) -Much like a rent-to-own contract in the context of housing. -Seller keeps legal title; buyer owns equitable title (as with deed of trust) and takes possession. -If buyer misses any payments, forfeits all payments made and never gets legal title. -If buyer makes every payment, gets legal title. -Modern reforms allow substantial grace periods, and treating them like a mortgage. Where a condition which has been 1.) created by the seller 2.) materially impairs the value of the contract and Implied Warranty of Habitability (Wade(Sewage)) 3.) is peculiarly within the knowledge of the seller or -The implied warranty of habitability requires that Landlord maintain “bare unlikely to be discovered by a prudent purchaser living requirements, and that the premises are fit for human occupation.” exercising due care…, 4.) nondisclosure constitutes a basis -Failure to supply a need such as “heat or hot water” would breach the warranty, however minor deficiencies such as a malfunction in the blinds for rescission as a matter of equity would not constitute a breach. Majority rule: Procedural Requirements: T must notify LL about the defects + allow a -Material facts reasonable time for LL to make repairs. T is not required to vacate – Can -Known to seller remain in possession + withhold rent until LL cures the habitability problem (main difference btwn constructive eviction) -Not known or reasonably knowable by buyer (subjective Remedies for a breach of the implied warranty of habitability: or objective) 1) T may continue to pay rent and seek reimbursement from the LL for -Which materially affect the value of the property rent that should not have been required due to the condition of the -Must be disclosed. premises. Strawn v. Caruso Rule: (Hazardous waste dump nearby) 2) Withhold rent until the repairs are made (which is often the most Professional sellers of residential housing must disclose productive remedy). 3) Go ahead and make the repairs using rent money and deduct the cost off-site physical conditions of which they are aware, which of the repairs from the rent you pay. are material to the transaction. 4) Terminate Lease Megan’s Law: Sex offenders must register The remedy is damages: Land Sale Statute of Frauds -Percentage diminution approach: T’s recovery reflects the % by which Essential Terms (identity of the parties, price, property the T’s use + enjoyment of the premises has been reduced by the description), writing (formal contract or informal memo), uninhabitable conditions signature (must be signed by the party sought to be Litigating the Statute of Frauds bound). -Plaintiff in contract action proves elements of contract: Offer + Acceptance + Consideration = Contract -Exceptions to SOF: Part Performance (buyer takes -Defendant then proves affirmative defense of Statute of Frauds possession, pays at least part of the purchase price, -Plaintiff then seeks to prove that the Statute of Frauds either (1) is not makes improvements), Equitable Estoppel (one party acts implicated or (2) is satisfied (either by a writing or an exception to his detriment in reasonable reliance on another’s oral promise, and serious injury would result if enforcement is Buyers typically breach in falling markets; sellers typically breach in refused) (Hickey case(sold house after agreed to buy rising markets. greens house)) Three primary types of deeds: General warranty deed -Grantor fully warrants the title against all defects that would affect marketability, regardless of when those defects arose. Special warranty deed -grantor warrants only that they did nothing to render the title unmarketable; they make no promises about what prior owners may have done. Quitclaim deed -grantor promises to sell only whatever interest they have – but makes no promises about what that interest actually is. Parts of a deed 1.Identification of the parties (first part and second party) 2. Description of the land (same 3 types as you saw back on pages 541 and 542 of the book) 3. Words indicating a present intent to convey the property (“remise (surrender), release, and quit-claim . . . all the right, title, interest, claim and demand . . . in the following lot, piece or parcel, land, etc.” 4. And signature by the grantor (grantee need not sign). Legal delivery of a deed(Rosengrantland2nephew) The grantor must (1) intend to immediately transfer an interest to the grantee (may be acts without words or words without acts, or both) and (2) provide some objective manifestation of that intent. Delivery is presumed if deed is recorded. Marketable Title: (Lohmeyer Case(house violated stuff)) Unmarketable if: 1.) sellers property interest is less than the one she purports to sell 2.) sellers title is subject to an encumbrance – not zoning, not value, not utility (encumbrance is rights of interests held by 3rd parties that effect the value of the land) 3.) There is any reasonable doubt about 1 or 2 Equitable Conversion -Breach of contract to sell or purchase real estate that happens during period between contract signing and execution(Brush Grocery(hail storm)) -Majority Rule: Party entitled to possession bears risk of loss during executory period (normally seller, not buyer)(Brush Represents this) Escrow Agent is neutral 3rd party that who receives purchase price, deed, mortgage, promissory note, and any other documents needed to complete transaction Judicial v. Nonjudicial Foreclosure Nonjudicial foreclosure usually saves time and money—but may present greater risks for the mortgagor. -This is because there is no judicial oversight in a nonjudicial foreclosure, by definition. -In a judicial foreclosure suit, the court must determine that (1) a default has occurred and (2) the debtor has no defenses before the foreclosure sale may occur. If both elements are satisfied, plaintiff receives the settled amount. -In a nonjudicial foreclosure, the lack of judicial oversight creates the possibility that the lender will take advantage of the debtor—unless the debtor files a lawsuit to enjoin the sale and thereby obtains judicial review. Easements (Relates to Access) -Public law and private law aspects -Easements are creatures of property law, so they transfer easily in almost all cases to the next holder of the burdened and benefited land. Vocabulary – burdened land is called servient; benefited land is called dominant. -allows owner to continue to use the land, subject to the easement. -But owner is not permitted to exclude the holder of the easement, and the easement continues for a definite amount of time. -An easement, like a lease, is considered an interest in land. Affirmative easements let you have access to someone else’s property so as to more productively use your own property. Negative easements give you access to sunlight, air, wind, or water that might otherwise be blocked by someone else’s property. Appurtenant easement -benefits the holder in the use of a specific parcel of land. Easement in gross -Personal to the holder, not connected to a specific parcel of land. (Milbrook Case) Easement by grant: servient owner grants easement to dominant owner Easement by reservation: Dominant owner grants servient land to servient owner but retains or reserves an easement over that property Types of Easements Express Easement (Agreement) -Must satisfy Statute Of Frauds -Should be recorded -Identify the parties -Identify the servient land -Provide the exact location of the easement -Indicate the purpose of the easement Implied Easement by Prior Use (Likely intent at severance) -Severance of title to land held in common ownership -Existing, apparent, and continuous use of one parcel for the benefit of the other at severance; and -Reasonable (strict in Florida) necessity for the use (higher standard for if easement is grantor than for grantee) Three Exceptions to CC&R Enforcement (1) Unreasonableness, (2) abandonment, and (3) changed conditions. Nahrstedt (Animals) rule on the unreasonableness defense to enforcement of CC&Rs: Restrictions should be enforced unless they are wholly arbitrary (bear no rational relationship to the protection, preservation, operation, or purpose of the affected land.), violate a fundamental public policy, or impose a burden on the use of affected land that far outweighs any benefit. Restatement rule on the unreasonableness defense to enforcement of CC&Rs: Valid unless . . . -Illegal or unconstitutional or violates public policy -Arbitrary, spiteful, capricious (No standard, inconsistent application) -Unreasonably burdens a fundamental constitutional right -Unreasonable restraint on alienation, trade, or competition -Unconscionable (shocking to conscious and absence of reasonable choice). Easement by Necessity: (Likely intent at severance) (In Florida there are two different kinds of easements by necessity, common law requires both elements, statutory only requires second element below) -Severance of title to land held in common ownership; and -Necessity (strict or reasonable(reasonable in Florida)) for the easement at the time of severance – not before the time of severance, but at the time of severance. Prescriptive Easement: (landowners lack of protecting own rights) -Adverse use of another’s land; -Continuous and uninterrupted for a at least 10 years (statutory period) (20 in Florida); -Either actually known to the owner, or so open, notorious & visible that a reasonable owner would have noticed the use; and -The dimensions of the land used, and the manner or purpose for which it was used. BOOK ELEMENTS: (open and notorious, adverse and hostile, continuous, for statutory period) Easement by Estoppel/Irrevocable license: (Reliance on a verbal promise) -Landowner allows another to use his land, thus creating a license; -Licensee relies in good faith on the license, usually by making physical improvements or incurring significant costs; and -Licensor knows or reasonably should expect such reliance will occur. License A license is not an interest in land and is often created when the parties mean to create an easement but fail to meet the writing requirement. A license can be terminated unilaterally at any time. A license does not continue for any definite period of time, and the owner of land has the right to exclude the holder of the license at any time. Punishment for Trespass “As in the Jacques case, trespass is a strict liability offense. Thinking back to the fundamental theories of property, the offense here is against Chandler’s right to exclude others from Chandler’s property. As in the Jacques case, the court may choose to award punitive damages supported by an award of nominal damages. “ Texas standard for abandonment defense to enforcement of CC&Rs: (Fink case) -Whether the “violations are so great as to lead the mind of the average [person] to reasonably conclude that the restriction in question has been abandoned.” -The “number, nature, and severity” of the violations are important. -If abandonment is in doubt, court will examine any prior acts of enforcement of the restriction, and whether it is still possible to realize to a substantial degree the benefits intended through the covenant. Fountain Valley case is the one that says it goes to far with veteran Land use agreements – real covenants or equitable servitudes. (Relates to Control) -“CC&R are rules and guidelines created to regulate Privately Planned Communities and are enforceable as real covenants or equitable servitudes.” -Creatures of contract law, once disfavored but have become accepted over time. -An easement involves access to someone else’s land, while a real covenant or equitable servitude allows you to either force some action to take place -or prevent some action from taking place – on someone else’s land. Real covenants and equitable servitudes are broader than easements in terms of what they can cover. -They allow the benefited party to either force some behavior (“you must paint your house red”) or prevent some behavior (“you cannot run a business out of your home”) on someone else’s property. In each real covenant, as with easements, we have a burdened party and a benefited party. -The burden rests on the party making the promise; the benefit is enjoyed by the party to which the promise is made. But it is harder for real covenants and equitable servitudes to be transferred with the land than it is for easements. -And that is because easements are creatures of property law that were assumed to attach to the land, while real covenants and equitable servitudes are creatures of contract law originally assumed to be personal promises not attached to the land. If you want injunction, do equitable servitude, if you want damages, do real covenant. The Business Judgment Rule Today (Florida) -Principle of substantive corporate law that presumes a corporate director has acted in good faith -Section 607.0830 provides that a director must discharge his or her duties in good faith, with ordinary care, and in a manner he or she believes in the best interests of the corporation. A director cannot be liable for money damages unless the plaintiff shareholder or corporation also proves that the director’s breach of his or her duties (whether in a statement, vote, decision, or failure to act) consists of one of the following: 1) a knowing criminal violation; 2) a transaction involving an “improper personal benefit” (e.g., self-dealing); 3) an improper distribution to shareholders; 4) conscious disregard for the best interest of the corporation; or 5) willful misconduct. Proving gross negligence is not enough to overcome the business judgment rule’s protections. The business judgment rule generally prevents a court from calling directors to account for their actions or inactions, no matter how poor their business judgment. Restatement Business Judgement Standard (1) In addition to duties imposed by statute and the governing documents, the association has the following duties to the members of the commoninterest community: (a) to use ordinary care and prudence in managing the property and financial affairs of the community that are subject to its control; (b) to treat members fairly; (c) to act reasonably in the exercise of its discretionary powers including rulemaking, enforcement, and design-control powers; (d) to provide members reasonable access to information about the association, the common property, and the financial affairs of the association. (2) A member challenging an action of the association under this section has the burden of proving a breach of duty by the association. Except when the breach alleged is ultra vires (beyond ones authority) action by the association, the member has the additional burden of proving that the breach has caused, or threatens to cause, injury to the member individually or to the interests of the common-interest community. License – Right does not continue for a definite period of time, and owner of land has the right to exclude the holder of the license. A license, unlike a lease or easement, is not classified as an interest in land. Lease – typically provides lessee with exclusive right to possession. Eminent Domain Fifth Amendment language on eminent domain: Nor shall private property be taken for public use without just compensation.” (Not limited to real estate)(In Florida, it is full compensation, like attorney’s fees as well)(no compensation for sentimental value)(solves bilateral monopoly problem)(DOES NOT GIVE EMINENT DOMMAIN POWER, IT RESTICTS IT) -Midkiff – Police power includes. “Health, safety, morals, and general welfare” (Broke up oligopoly) Standard applied: “rationally related to a conceivable public purpose.” Only takings purpose matters, not mechanics in order to pass strict scrutiny -Kelo goes a step further because it is not an oligopoly and existing uses were reasonable and not hurting anyone Nuisance Public: improper interference with a right common to the public Private: any intentional non trespassory invasion of another’s interest in the private use or enjoyment of land (The following elements apply) Elements: 1) Intentional act –the act must be intentional, and the actor must be aware that his act will or likely will cause an invasion to another person’s property, but he doesn’t have to feel any malice, ill will, or intent to be a nuisance. 2) Nontrespassory – there is no physical entry onto the land. 3) Unreasonable interference – most jurisdictions balance the harm caused by the act against the social utility of the act. -Under the gravity of the harm test: (Boomer (cement)) -Any conduct is unreasonable if it causes substantial harm, regardless of the social utility of the conduct. -Under the Restatement approach: (Thompson(smoke)) -Extent of the harm; -Character of the harm (Is it personal injury, property damage, or personal discomfort); -Social value that the law attaches to the type of use or enjoyment invaded (ability to use home, etc.); -Suitability of the particular use or enjoyment invaded to the character of the locality; and -Burden on the person harmed of avoiding the harm --- Balanced against ----Social value attached to the primary purpose of the conduct complained of; -Suitability of the complained-of conduct to the character of the locality; and -Impracticability of preventing or avoiding the invasion 4) Substantial interference – how bad is it? (Property damage, personal injury and personal discomfort) 5) With use and enjoyment of land Remedy: Public Land Use Regulation Some of the assumptions of Euclidean zoning 1) separation of uses is desirable 2) single-family residence is the most important use 3) Low-density development is desirable 4) Residents will travel by private car 5) Development will proceed lot by lot 6) Once zoning is established, there will be little need to change it. Rational Basis Test: (Euclid Standard) Unconstitutional ONLY IF “clearly arbitrary and unreasonable, having no substantial relation to the public health, safety, morals, or general welfare.” This standard reflects judicial deference to legislative decisions. -Zonings come from police power -Courts generally uphold ordinances which provide that only members of a family may occupy a single family residence. -If an ordinance prohibits family members from living together it is subject to the Moore strict scrutiny test of evaluating the importance of the government interest advanced and the extent to which those government interests are served by the regulation. Standards applied in the Associated Home Builders case (Growth controls and exclusion) -Gives guidance and alters euchlid standard under circumstances when a land use ordinance effects residents as well as non-residents of the same municipality -“The probable effect and duration of the restriction” (stopping development or just slowing down) -The “competing interests affected by the restriction,” including the interests of residents and nonresidents -“Whether the ordinance…represents a reasonable accommodation of the competing interests” (Weigh interests) Stoyanoff: court pure aesthetic regulations won’t work alone, need some other justification like property value Modern Courts: Purely aesthetic is okay as long as it passes rational basis test Gilleo: Ordinance banning almost all signs normally would have passed uchlid rational basis test but fails here because first amendment analysis is more strict -Traditionally, an injunction was the remedy for nuisance, although damages may also be awarded (as in Boomer). - Today, courts balance equities to determine if the appropriate remedy is an injunction or damages. Public benefits test73.014: Taking property to eliminate nuisance, slum, -Actually used by public or blight conditions prohibited -Public benefits by use of land (comprehensive plan?) Florida Eminent Domain: SECTION 6. Eminent domain.— (a) No private property shall be taken except for a public purpose and with full compensation therefor paid to each owner or secured by deposit in the registry of the court and available to the owner. (b) Provision may be made by law for the taking of easements, by like proceedings, for the drainage of the land of one person over or through the land of another. (c) Private property taken by eminent domain pursuant to a petition to initiate condemnation proceedings filed on or after January 2, 2007, may not be conveyed to a natural person or private entity except as provided by general law passed by a three-fifths vote of the membership of each house of the Legislature. Prohibited Discrimination Covered Transactions Statutory Exemptions Fair Housing Act of 1968 Civil Rights Act of 1866 Race; Color; Religion; Sex; Disability; national origin Familial Status (families with minor children, or pregnant women) Handicap (1. A physical or mental impairment which substantially limits 1 or more of the person’s major life activities; 2. A record of having such an impairment; or 3. Being regarded as having such an impairment, but does not include current, illegal use or of addiction to a controlled substance Race Selling Renting Advertising (Dwelling Only) Inheriting Purchasing Leasing Selling Holding Conveying (Real and Personal Property) NONFREEHOLD ESTATES (LEASES): Language establishing Term of Years Tenancy “2 Year Lease” -Fixed duration that is agreed upon in advance 1. Rooms or units in dwellings containing living quarters . . . occupied by no more than four families living independently of one another, if the owner . . . occupies one of such living quarters as his residence. 2. Any single-family house sold or rented by an owner if he does not own more than three houses and does not use a real estate broker or agent in the sale or rental. -Once that term ends, tenant’s possessory right automatically expires, + LL may retake possession Majority rule of notice to terminate/end Real Covena nt Burden Real Covenant Benefit Equitable Servitude Burden Equitable Servitude Benefit Restateme nt (covenant that runs at law) Yes, or common plan Statute of Frauds Yes Yes Yes, or common plan Yes, or common plan Intent to Bind Successors Yes Yes Yes Yes Touch and Concern Yes Yes Yes Yes No Notice Yes No Yes No Not an affirmative element of proof; instead, an affirmative defense Horizontal Privity (must be more than just that agreement) Vertical Privity Yes No No No No Yes Yes No No Generally not Not arbitrary, unconstitutional, unconscionable, or violative of certain public policies * * * * Yes Yes (by owner of burdened property) Tenancy at Will “Month to Month; year to year” etc. “So long as both of us wish” -Automatically renewed for successive periods unless landlord or tenant terminates the tenancy by giving advance notice But often arises by implication w/out an express agreement 30 days for month to month -At common law either party could terminate with no notice. -Today, most states require advance notice to end such a tenancy that is equivalent to the period of time between rent payments. -Tenancy terminates automatically if either party dies, tenant abandons possession, or landlord sells the property Florida implies a periodic tenancy in a residential lease where no fixed term is given. Florida Statutes 83.46 (and thus 83.57 for notice required) LL has 3 options of what to do with a holdover tenant: 1. Treat him as a trespasser + evict. 2. Charge double rent 3. Renew his lease for another term -Today, most states have abolished the 3rd option Thus, tenancy at will is only for nonresidential leases in Florida. Can’t Renew Lease 6 months for year to year Florida Rules & Notice Required to End Note that these exemptions do not apply to advertising in violation of the FHA. Periodic Tenancy None required unless parties otherwise contract; automatically ends at end of term. Florida Statutes 83.575 Maximum notice that can be required by contract is 60 days. Year to year – 60 days' notice to terminate Quarter to Quarter – 30 days Month to month – 15 days Week to week – 7 days Florida Statutes 83.57 -Has No fixed ending point (Effel case (must be for fixed period or it is tenancy at will), can’t invent new lease type)) Tenancy at Sufferance - only created when a person who rightfully took possession of land continues in possession after that right ends (similar to AP) - Arises from occupant’s improper conduct, person becomes a holdover tenant Landlord may recover possession and may recover double rent during the holdover period. Florida Statutes 83.58. Not recognized in Florida for nonresidential leases. “Numerous clauses” – Can’t invent new type of lease Fair Housing Act Burden shifting framework (When a PL offers no direct evidence of discrimination) PL must establish a prima facie case of discrimination by showing: 1) PL is a member of a protected class and defendant knew this 2) PL applied for and was qualified to rent the property 3) Defendant rejected this application and 4) Property remained available thereafter Once PL establishes a prima face case, burden shifts to DF to articulate some legitimate, nondiscriminatory reason for their rejection of PL’s application If DF satisfies this burden, PL must show either that DF’s reasons are pretext (not the real reason) or that material facts are disputed