1 Property LAW 108b Y01 Professor Hamar Foster by Brian Eberdt THE NATURE OF PROPERTY ...................................................................................... 3 Defining Property in the Common Law ....................................................................................................................4 The Case for Private Property ....................................................................................................................................5 The Functions of Modern Property Law ...................................................................................................................6 PROPERTY IN PERSPECTIVE ...................................................................................... 7 The Sources of Canadian Property Law ....................................................................................................................7 THE PHYSICAL DIMENSIONS OF OWNERSHIP ......................................................... 9 Cujus est Solum ejs est Usque ad Coelum et ad Inferos ...........................................................................................9 Lateral Boundaries .................................................................................................................................................... 10 Fixtures ....................................................................................................................................................................... 12 POSSESSION ............................................................................................................... 12 Introduction ............................................................................................................................................................... 12 The Law of Adverse Possession ................................................................................................................................ 13 The Law of Finders.................................................................................................................................................... 14 Gifts............................................................................................................................................................................. 15 THE DOCTRINE OF ESTATES .................................................................................... 16 The Estate in Fee Simple ........................................................................................................................................... 16 The Fee Tail................................................................................................................................................................ 17 The Life Estate and Estate Pur Autre Vie ............................................................................................................... 17 Life Estates Arising by Operation of the Law ......................................................................................................... 18 Personalty and the Doctrine of Estates .................................................................................................................... 18 3 The Nature of Property Differing Approaches to the Conception of Property Aboriginal Perspective Michael Polsun’s, “Suddenly Agate” conveys the reaction to the stark transition of land management to being one of European norms of property holdings Calder v. The Attorney General (1973) o in 1927, it was declared a federal offence for natives to raise aboriginal title issues o this decision significantly increased the actionability of aboriginal title o forced the judges to consider whether the government of BC had been acting illegally Seymour – “Animals and the Law” has us look at animals as straddling the categories of things that can own and things that can be owned Cheryl Harris – “Whiteness as Property” flips the idea of African Americans being held as property by virtue of their race notes the analogous characteristics: alienability and exclusivity 4 Defining Property in the Common Law Felix Cohen – “A Dialogue on Private Property” Private Property and Communism o private property exists in capitalism as well as communism, the only question is that of who holds the title Does Private Property Exist? o considers how property is more akin to a right than an object Property as Social Relations o property is based on the relations between people o reinforces the idea of property as abundle of rights Property and Wealth o notes a connection between property and scarcity o suggests (questionably) that property is the opposite of wealth Ownership Use and Sale o being able to charge for something does not imply ownership Exclusion and Exclusiveness o exclusion is a characteristic of property, but does not define it on its own Property and Law o the two are inseparable, otherwise, it would be natural law Cohen is seen to be a single variable essentialist International News Service v. The Associated Press (1918) AP won an injunction against INS forcing them to stop using their stories o wouldn’t have been so contentious had they merely won damages had the effect of the court recognizing a property right for printed news o decision was based on the fact that the news itself had value coined the term quasi-property signifying an uncertainty as to whether the object in question should be deemed to be a property per se was a contentious decision, reversing years of precedence o dissented by Brandeis J. : news is not copyrightable Victoria Park Racing v. Taylor (1937) Taylor was broadcasting the results of horse races as he viewed them from his land cause of action was nuisance (i.e. interfering with an occupier’s land use or enjoyment of their land) Latham found no precedent for the claim Rich (dissenting) said that precedent wasn’t necessary o “the categories of nuisance are never closed” 5 The Case for Private Property The Theories Law and Economics Utilitarianism Property as a Necessary Condition for Freedom Property as a Necessary Condition of Personhood Property as a Product of Labour and Reward for it Property as First Occupancy Pluralism free market is the best market should be protected as such there must be exclusivity and transferability of ownership tragedy of the commons – cost of overgrazing born by all levant and couchant works better (cattle sleep on private land) tragedy of the anticommons – if everything was private property, nothing would get done society should adhere to whatever system produces the greatest number of goods in the puritan sense, this would be regardless of the consequences human personality can not fully grow into itself unless the person is free used by Waldron to highlight psychological dimension of homelessness Hegel’s idea that we become humans by investing our personal will into objects as seen in claims for Aboriginal Title, property is essential to our identity John Locke argued that, at a state of nature, we have property, but in a weak manner we earn property by investing labour into obtaining it we earn our ‘desert’ to property the argument used in settlement of land has been the source of many conflicts between nations the case for private property need not exclude other theories it’s possible to argue for combinations of the theories outlined above Jeremy Waldron – “Homelessness and the Issue of Freedom” suggests that our concern over the private/public only arises when a space develops a sense of desirability the government’s increasing regulation of public property is virtually robbing homeless people of any spaces in which they can exist 6 Carol Rose – “Whither Commodification” the ‘double-bind’ dilemma (Radin) o “a poor person is in danger of holding a commodified view of her own body if she sells, say, a kidney, but because of her poverty she is in trouble too if she is forbidden to sell it.” explores our cultural aversions for the commodification of sex, organs, children, etc. sex trade example o first-best scenario – sex is only exchanged based on love o second-best scenario – sex for money is not entirely illegal commodity vs. meaning o discussion of potlachs as having cultural meaning although there is a significant exchange of goods o we often consider culture to diminish in meaning when it is commodified The Functions of Modern Property Law Ziff on The Functions of Modern Property Law private property must be justified as such there is a difference between private property and collective property the assessment of novel claims for property involves the evaluation of prior categories of property o law degree example – it is property in the US, but not Canada courts may abide by the functional or attribute approach there are numerous active debates surrounding cultural appropriation o can a culture/society own tradition stories or songs? generally, the courts are wary to allow new types of property Moore v. The Regents of the University of California (1990) background for the case is in Nelkin and Andrews’, “Homo Economicus: Commercialization of Body Tissue in the Age of Biotechnology” (1998) considers whether or note someone’s cell line can be construed as property we considered only two causes of action (of a total of 13) o breach of fiduciary duty o conversion – dealing with an owner’s goods in a manner inconsistent with their rights (he won on this) 7 considers Carol Rose’s argument o if his body parts become commodified, he should at least profit Monsanto Canada Inc. v. Schmeiser (2004) distinguished from “The Harvard Mouse Case” where the SCC said that mice containing cancer causing gene could not be patented, with a 5:4 split here, the court split 5:4 in favour of Monsanto o patents on plants are invalid, but they had a patent on the gene and cell, so it was deemed to be okay because that gene is required for the desired reproduction Property in Perspective The Sources of Canadian Property Law The Feudal System technically, the Crown is the true owner of all land in Canada, but they can not easily go about expropriation without good reason (usually criminal) and/or appropriate compensation in feudal times, neither the tenant nor the lord owned the land o tenant had seise of the land and could grant their land to others o Lord was seised of the tenants services seise is somewhere between possession and ownership a pyramid was created as tenants began seise there own tenants’ services quiaemprtores was instituted to put a stop to this subinfeudiation Upon death o a tenant declares fealty to his lord, disabling him from willing or selling his land, however the lord would generally seise the tenant’s heir, decided upon through primogeniture (no will was involved) o personal property was dealt with by the church distributed by the church, who took 1/3 for themselves o not until 1540 that a land-holder could legally make a will Tenures o Tenure Abolition Act abolished all tenures except for free and common socage, giving us escheat and forfeiture o today, property owners hold their land in fee simple under common sockage under the Crown because of the historical significance of land, the process of its commodification took over 300 years Section 2 of The Law and Equity Act 8 allows for the application of English law in its form as of 1858 o provided that there are no more modern statutes which are applicable Aboriginal Title and the Declaration of Sovereignty in property law, Aboriginal title is considered sui generis (in a class of its own) unlike other property that we deal with, it’s communally owned in most cases, England would declare itself sovereign over new territories, with little consideration of the occupants of that time and their respective legal systems the Crown’s claiming sovereignty is seen to “slip under” the land rights of the aboriginals who were already there, instead of revoking them Divisions of Real Property realty (land) is immutable and of fixed quantity o in Okanogan Indian Band v. Bonneau (2003) we see how real and personal property are distributed upon death elements of realty o corporeal – capable of being possessed o incorporeal – incapable of being possessed (e.g. right of way) Divisions of Personal Property the merging of real and personal property lead to the Chattels Real Act in Newfoundland, similarly, the Law of Property Act in Alberta o a chattel reel is a lease, signed outside of the tenurial system allowed poorer people to obtain land o formally reduce the distinction between realty and personalty chattels personal are things that you own, divided as follows o choses in possession o choses in action – are not possessed, but are legally defendable Death Common Law stipulates that, upon intestacy, the heir gets the fee simple if there’s no will (intestate succession) o realty and personalty is distributed by your representatives (administrators) o governed by the Estate Administration Act if there is a will (testate succession) o real and personal property is distributed by the executors o Law vs. Equity the executor has legal title to the property the individuals named in the will have equitable title 9 Andrew Bell’s Functional Analysis The Right Analysis Beneficial Rights entitle the holder to all profit that flows from the land Security Rights possessed by the bank in a mortgage Managerial Rights possessed by a trustee who manages land or property Remedial Rights where someone receives a property remedy Expropriation remember that property is not Constitutionally protected in Canada o it is recognized in the Canadian Bill of Rights, but that only applies to federal cases, and property is of provincial jurisdiction in the The Castle it was, enabling the Kerrigans to challenge expropriation by showing their rights under the Constitution US refers to their expropriation right as the power of eminent domain o cases against expropriation are more likely to succeed Mariner Real Estate v. Nova Scotia (Attorney General) (1999) o a distinction was made between a de facto and de jure expropriation o notes how there are only three cases that resemble ‘regulatory taking’ (de facto expropriation), none of which succeeded The Physical Dimensions of Ownership Cujus est Solum ejs est Usque ad Coelum et ad Inferos translated: o “Whoever owns the soil also owns up to the heavens and down to the flames.” taken from Civil Law, this maxim essentially sets the rule Ad Coelum was absurdly defended in Bernstein of Leigh (Baron) v. Skyviews (1978) o interestingly, it was found that the Civil Aviation Act, by making an exception for aircraft, might have given Bernstein some right o in the interest of precedent, the courts decided that everyone owns the airspace Ad Inferos in Edwards v. Sims, the court barred a property owner from charging admission to a cave that lay under another owner’s land (from which the cave was inaccessible) 10 o as expressed in this dissent, the ruling is somewhat absurd for us s. 50 of the BC Land Act clarifies the issue to a certain degree o to a significant degree, it exempts the title holder from ownership of mineral deposits or natural resources found underneath their land Lateral Boundaries Land Bounded by Land REVIEW ZIFF PP 91-96 ON THIS Land in o in o Bounded by Water England the respective land rights are determined by whether the water is tidal Canada the rights are determined by whether the water is navigable non-navigable – the owner owns the land up to the center of the body of water (ad medium filum aquae) navigable – up to the high water mark o s. 55 of the BC Land Act in Nikal v. The Queen (1996), important additions to the Canadian position were made o the ad filum aquae rule did not apply because the land in question was a federally granted reserve o non-navigable sections of the river do not make an entire river nonnavigable o because the river was deemed to be navigable, the Crown held that they owned the fish that were in the water above the river bed Riparian Rights riparian owners have unique rights that other land owners do not Steadman v. Erickson Gold Mining Corp (1989) deals with one of these; the right to use stream water o Steadman alleged that Erickson tainted their shared water supply o neither had a license (subject to the BC Water Act) o noted that no one has a right to ground water o additionally, an owner can use as much water as they wish (and divert its flow) as long as it’s for domestic purposes o because of these rights to the water, Steadman could continue to use it District of North Saanich v. Murray (1975) found that construction on unowned foreshore amounts to trespass o the case set out that he would have to reach an agreement with the owner of the foreshore (Saanich) o in actuality, this is what they did (the wharf still stands) 11 Water Use Exception o in response to the apparent inability of riparian rights to work for water use, the BC Water Act (s. 2) allows appropriation rights for water use o thus, whoever got their first has the right to use the water Accretion the rule for accretion is bizarre o in order for the landowner to benefit from accretion, it must occur gradually and imperceptibly leading BC case for the issue is Re Monashee Enterprises Ltd. and Minister of Recreation and Conservation for British Columbia (1981) o Crown granted the land to a party in 1911 since then, 5.87 acres had accreted at the foreshore boundary o Monashee acquired the land in 1964 o s. 85 of the Land Act stipulated that the Crown may reserve one chainwidth of land measured from the high-water mark thus, as the land accreted, the Crown acquired all the new land o thus, Monashee was not actually a riparian owner o to rule otherwise would be to interpret the Crown to have an ‘ambulatory strip’ which would be absurd the judge in Monashee pointed out how the cases might be resolved in Australian courts with use of a ‘reservation’ o in BC, s. 50 of the Land Act is an analogous to this allows the Crown to resume 5% of anyone’s property if they wish this is how they were able to build railways that go through Indian Reserves Lateral Support property owners have an incidental right to have their landed supported laterally by the neighbouring lands technically, this right does not extend to buildings that are on an owner’s land – but this is alright as long as you can prove that the land would have subsided in absence of the buildings in question it is possible to apply for an easement o signed agreement stipulating that your neighbour is required to support your building laterally up until 1976, you could acquire prescription rights o these serve the same purpose o they’re non-possessory rights, accrued upon the lack of any structural modification over a 20 year period o because of the difficulty in proving this, they were abolished by s. 24 of the Land Title Act 12 in Rytter et al. v. Schmitz (1974), Ruttan J. decided that the plaintiff had accrued prescription rights o even without such rights, the plaintiff had a good case for damages as the defendant had trespassed, causing damage to the plaintiff’s property o in absence of prescription rights, the plaintiff had a right to lateral and vertical support Vertical Support generally arises in cases involving mining licenses they will usually be settled in tort (nuisance or trespass) because they are difficult to resolve in support rights on their own Fixtures this describes the phenomenon by which personal property becomes real property (literally, by becoming ‘fixed’ to it) classified as security interests (remember bankrupt hotel carpets) derived from the law of successions, from early common law o classification of property had determined whether it was dealt with by the church or the state the definition of fixtures has changed over time (e.g. the bathtub) the test o whether an objective person would assume that the object in question would accompany the sale of property given the non-specificity of the test, courts have a lot of trouble actually reconciling these cases Heathron Developments v. Kemp Concrete Products (1998) is one of the most oft cited fixtures cases o sets out the test by saying that the articles were intended to be part of the land, articles affixed ‘even slightly’ are assumed to be realty o the purpose of the article must be plainly seen o intention will be evaluated in light of the degree of annexation Possession Introduction two components of possession o intention to possess (animus possidendi) o physical control (factum) Popov v. Hayashi (2002) is a modern case highlighting the complexities that the course are faced with 13 o between two individuals claiming they had possession of a valuable baseball, ‘caught’ at the game o introduced concept of pre-possessory interest both parties had an intention to possess the ball Popov could not obtain control because of the mob around it Hayashi was found to have benefited from the mob thus, they were each awarded equal value a lot of the relevant precedent descends from cases involving possession of wild animals o like water and air, nobody owned them o pivotal question became: at what point does the person pursuing an animal get possession of it o when you catch an animal and it escapes, you lose possession constructive possession o if you have an animal that is in the habit of returning, when it is out of your physical possession, it remains in your constructive possession due to the jus tertii defense, third parties with better claims to property are ignored, disputes are between the litigants only (remember the soldier finding the broach during the war) Three Key Concepts in Possession o license – granting permission, but neither possession nor title o sale – granting title and possession o bailment – granting possession, but not title Carol Rose o points out the essence of property being to make a “clear statement to the rest of the community” o “possession is yelling loudly enough to all those who are interested, and continuing to yell.” o notes that it was very difficult for Aboriginals to assert their claims of possession to Europeans, the methods of doing so were incompatible The Law of Adverse Possession title through adverse possession is good against anybody except he who possesses a better title s. 23 (2) of the Land Title Act asserts that the paper title is the best title Asher and Wife v. Whitlock (1865) o neither plaintiff nor defendant was the paper title holder the Lord was the rightful owner, but didn’t assert title o plaintiff’s donor (relation unknown) was making a will of land to which he had no title he was an adverse possessor, thus it’s legal o issue: Does someone who is in possession of land who neither has the title nor has long enough interest for adverse possession get the land? yes 14 Re: Canadian Pacific Railway Co. (2002) o the CPR didn’t know if they actually owned a half mile of their line o they couldn’t tell who the owner was o they decided to wait out the 20 years required to gain possessory rights (totalling 60 years of adverse possession ) – the tactic resulted in success o tells us that you may legally assert your adverse title upon the first issuance of a paper title (but not thereafter) o a necessary requirement for CPR’s claim was that they never had permission to use the land – which they proved The Law of Finders the issue is centred around who has the best right to the property Ziff, pp 134 o “A finder acquires good title against the world except for those with a continuing antecedent claim.” Bird v. The Town of Fort Frances (1949) o child finds money under a house, subsequently confiscated by a police constable o the individual with the best claim (occupier) wasn’t involved o the executor of the owner’s estate has a managerial interest, but was a third party (jus tertii) o McRuer J. pointed out that the money was not lost, it was stashed with the intention of being found o in spite of the fact that Bird was trespassing, McRuer ruled that he had the right to the property o this ruling questions the limit of ex turpi causa generally, the court will not act on a claim when the plaintiff can be shown to have been involved in a wrongdoing Parker v. British Airways Board (1982) o Parker found a gold bracelet in the lounge of Heathrow Airport, asked to keep it if it was left unclaimed, airport did not comply o Donaldson J. resultantly develops the ‘finders code’ Rights of the Finder Rights of the Occupier property must be lost or abandoned, and taken occupier has superior rights to the finder under control of finder when chattels are attached to the building rights are limited if it’s dishonestly taken occupier’s rights to unattached chattels are under control, or by trespassing superior only if he has expressed intention to control if conditions satisfied, finder has claim for such ‘found’ chattels, the occupier has against all but true owner an obligation to find the true owner if finder finds in the course of his occupier of a chattel (eg ship) has employment, employer has rights to chattel equivalent rights to occupier of a building measures to find true owner must be taken 15 treasure trove – most legislation allows for finders to get a cut of the property they find Gifts three kinds of gifts: testamentary, inter vivos, donationes mortis causae Ziff points out that, generally, the common law is wary of gifts o the general rule is that bargain (consideration?) is shown o as contracts require consideration, gifts require delivery exceptions to the delivery rule o deed a promise under seal will make the gift binding essentially it becomes a contract o declaration of trust lending your car to someone constitutes delivery, but here there is no intent, thus there’s no gift o rule from Strong and Bird if you make the donee your executor, it completes the gift o a stoppel (detrimental reliance) if someone’s actions or requests incur a detriment upon you, this may be considered reliance, thus completing the gift o constructive delivery when the donor delivers something that stops them from taking the gift back (ie integral part of the gift itself) Donationes Mortis Causa – “gifts made in contemplation of death” o similar to both testamentary gifts and inter vivos gifts o requires delivery o become absolute upon the death of the owner o revocable by the owner at any point up until their death o strong intent can cause courts to be lenient with gift requirements Schoppel v. Beaumont Estate (1970) o Schoppel was informally given the title to Discovery Island before Beaumont’s death o considered whether $1 was sufficient consideration for such a grant this was not determinant of the outcome o he sought specific performance for the agreement of sale o land contract required: agreement of sale AND conveyance o three elements of a gift intention to give – this was present acceptance by the donee – this was present physical delivery – this was inadequate o would have been valid with a deed, vesting himself of his ability to take the land back 16 o was not valid as a will, because it was a holograph will (it was written) o Wilson J. gave Schoppel costs in return for his honesty Thomas v. The Times Book Co. (1966) o Dylan Thomas’ wife challenged his giving Times Book his manuscript as a gift o burden of proof lies on Thomas Book o delivery was qualified by Thomas’ allowing Times Book’s representative permission to keep the manuscript if he found it thus, the gift was perfected o court indicates that delivery may occur before, simultaneously, or after the expression of intent o highlights an intersection between gifts and contracts consideration o was not a donatione mortis causa because he did not know that he was going to die MacLeod v. Montgomery’s Estate (1979) o there was an apparent intention to make a gift o in order for delivery to have occurred, it was required that the bank have the duplicate certificate of title (to avoid someone else bringing forward title to the land) o delivery of land requires registration (stipulated in s. 20 of the Land Title Act) o Haddie MacLeod was a volunteer – she had not paid or done any work for the land had this been otherwise, she would likely have been granted the land The Doctrine of Estates The Estate in Fee Simple must be granted by the specific wording: “To A and his heirs” o A gets the land for life, then it is passed to A’s heirs o this requirement is a rule of law fee – refers to the legal enforceability of the heirs’ rights simple – refers to the ability of the title to be conveyed to any heir failure to use the specific wording only conveys a life interest s. 19(1) of the Property Law Act stipulates that the specific wording is no longer required it is now presumed that a fee simple is meant to be granted, unless indicated otherwise o this is a rule of construction Thomas v. Murphy (1990) 17 o plaintiffs were suing with the claim that the test for simple had not been passed o judge ruled that it had been passed because a successor is different than an heir The Fee Tail lasts as long as there are direct lineal descendants of the holder concept arose from the granting of marriage gifts where a father wished to endow daughter and son-in-law with land was a conditional gift, dependant on the couple producing children became less popular with alienability and waning popularity of the dynasty – it no longer made sense s. 10 of the Property Law Act abolishes the fee tail court action of common recovery could convert a fee ail into fee simple The Life Estate and Estate Pur Autre Vie life estate can be granted to someone for the duration of their life (pur sa vie) or the duration of another person’s life (pur autre vie) it is an uncommon artefact of property law does not require the use of specific language for its construction The Repugnancy Issue o what happens with wills when no lawyer is involved o some wills will present an ambiguity of what is to happen to a gift of land upon the donee’s death o this may result in the granting of the land to the donee as a life estate, then to heirs in fee simple The Concept of Waste o what a life tenant is allowed to do to a property while holding it o incorporates balance of interest between person with life interest and person who is granted the remainder o four types of waste ameliorating – enhance value of the land, while forcing subsequent occupier to incur greater costs of upkeep (grantor can exempt the occupier from this by including the clause “…without impeachment for waste”) permissive – result of failure to preserve the property voluntary – conduct that diminishes land value equitable – severe and malicious destruction (s. 11 of the Law and Equity Act states that no one escapes liability from this unless there is a specific clause dealing with equitable waste) Vain v. Lord Barnard (1716) o Barnard wanted to keep the estate in the family, but only gave his son a life estate, taking away his ability to sell 18 o Barnard significantly devalued the property, for which Vain would have had to have paid o Vain sought an injunction, giving rise to equitable waste Life Estates Arising by Operation of the Law Dower o after the wife’s personalty merging with the husband’s ond the death of the husband, widow became entitled to one third of the life estate, under common law o not to be confused with dowery Curtesy o widower had right to all of the wife’s land upon her death o common law roots: husband became a tenant to his wife’s lord when she died, so courts of England thought this should extend to the tenant for his life both of these concepts are outdated modern day analogue of theses is the homestead legislation outlined in s. 96 of the Estates Administration Act and in the Land Spouse Protection Act o states that, upon intestacy, all land goes to the spouse o if there’s a child, half goes to him or her o spouse gets a life estate in the matrimonial home Personalty and the Doctrine of Estates doctrine of estates is inapplicable to personalty common law qualifications o bailment – a temporary interest is possible o equity – time limited gifts of personalty may be contained in a trust o division – a will can divide title to personalty (eg to A for life, then to B absolutely) Re Troup (1945) o evidence that the doctrine of estates does not apply to personalty 19 More Questions what did the judge want to get out of his reference to the Australian cases in Monashee what exactly was the ratio in Re: CPR in MacLeod v. Montgomery, was the failure to registure ONLY because the inability to show a duplicate certificate of title