!
Property!Outline!.!Zasloff!
!
CREATION!&!ACQUISITION!OF!PROPERTY!
I.
1.
!
CAPTURE!
a. Rule!of!Capture:!First!person!to!take!possession/control/capture!a!resource!owns!it!(applies!to!wild!
animals,!oil,!gas,!water,!etc).!To!determine!possession,!need:!!
1. an!intent!to!control!object/exclude!from!others!AND!
2. actual,!physical!control!or!holding!of!the!property!(actual!possession)!
• Popov%v.%Hayashi:%When!person!takes!significant!but!incomplete!actions!to!achieve!
possession!of!abandoned!property!and!the!effort!is!interrupted!by!unlawful!acts!of!
others,!the!person!has!preHpossessory!interest!in!the!property!(right!to!possession).!
(Decided!on!fairness!–!one!had!preHpossessory!right!to!finish!catch!without!
interference,!other!was!first!to!actually!control)!
• Pierson%v.%Post:!Pursuit!alone!is!not!sufficient;!only!the!person!that!mortally!wounds!
or!seizes!the!animal!can!acquire!possession!of!it;!decided!on!
administrability/instrumental!(rejects!custom)!
• Keeble%v.%Hickeringill:!(1)!NonHproductive!interference!is!not!okay!(but!competition!
is);!(2)!can!have!a!right!to!something!without!actual!possession!(constructive!
possession);!decided!on!instrumental!–!we!want!to!incentivize!productive!behavior!
(utilitarian!theory)!
a. Constructive!Possession!vs.!Actual!Possession:!CP!has!same!effect!in!law!
as!actual!possession,!but!it’s!only!a!right!to!possession!(ex:!Post’s!pursuit,!
natural!resources!beneath!one’s!land,!Keeble’s!ducks)!!!!!!
• Ghen%v.%Rich:%Custom!is!that!person!who!kills!whale!first!is!the!one!who!lays!claim!
to!it!as!property,!even!though!whale!sinks!and!is!discovered!later;!any!other!rule!
would!disincentivize!working!for!whale,!decided!on!custom/!instrumental/labor!
theory!
b. Common!Law!Rule!(based!on!Pierson,%Keeble,%Ghen):!“Possessor!is!first!person!to!incapacitate!or!
trap!unless!there!is!a!long!established!industry!custom!that!appears!necessary!for!the!industry’s!
survival!or!someone!has!unproductively!and!maliciously!interfered.”!
c. Types%of%Arguments%To%Make:!
• Administrability!–!less!litigation,!bright4line!rule,!easier!to!dispose!of!cases!(prefers!rules)!
• Analogical!–!similar!to!precedent,!look!at!like!situations,!easier!to!predict!outcome!
• Instrumental!–!what!behavior!should!be/not!be!incentivized!
• Custom!–!institutional!competence!(best!people!to!do!cost4benefit,!judicial!modesty),!works!
well!in!practice,!people!know!about!it!and!will!follow!it,!easier!to!model!behavior!BUT!may!
represent!certain!interests,!be!outdated!and!enforce!inertia!
• Labor!Theory!(Fairness)!–!who!deserves!it,!who!did!all!of!the!work!(prefers!standards)!
• First!Occupancy!Theory!(Fairness)!–!person!who!possessed!it!first!is!entitled!to!it,!encourages!
exploration,!more!administrable,!certain!and!bright!line!BUT!can!be!rigid!and!arbitrary!
• Utilitarian!Theory!–!person!who!it!would!be!most!socially!valuable!to!give!it!to!deserves!it!
• First!in!Time/Rule!of!Capture!–!first!person!to!take!actual!possession!of!something!with!intent!
to!possess!is!the!owner!
d. Externalities:!the!costs!and!benefits!of!an!activity!that!are!not!taken!into!account!by!a!resource!user!
when!he!makes!decisions!
• Encourages!misusing!or!misallocating/inefficient!use!of!resources!(both!between!users!and!
for!the!future)!
a. Tragedy!of!the!Commons!–!society!won’t!act!in!its!best!interest!because!of!
2.
externalities;!ex:!everyone!has!incentive!to!get!oil!out!of!ground,!try!to!use!
it!quickly!otherwise!someone!else!will!
• Hard!to!come!to!an!agreement!on!how!to!use!common!property!
• Transaction!Costs:!getting!people!to!agree!is!difficult!and!costly!
• Holdouts:!one!person!refuses!to!agree!to!get!more!for!himself!
• Free!Riders:!people!refuse!to!contribute!to!common!good!because!they!think!they!
can!get!it!for!free!
• Demsetz!–!Why!do!we!have!private!property?!TO!REDUCE!EXTERNALITIES!(doesn’t!
eliminate!them,!but!reduces!them!significantly)%
• Private!property!forces!us!to!internalize!externalities!(i.e.!take!then!into!account)!
• Incentivizes!using!property!more!efficiently!
• But!externalities!can!still!occur!(i.e.!pollution)!and!can’t!privatize!all!types!of!
property!(i.e.!oceans)!
a. Can!use!statutes,!licensing,!etc.!!
b. Customs,!social!norms!might!also!work!to!restrict!
• Based!on!utilitarianism!–!point!of!property!rights!is!to!promote!most!efficient!use!of!
resources,!maximize!social!utility!(greatest!good!for!the!greatest!number!of!people)!
a. BUT!problems:!
i. NonHMonetizable!Values!–!property!has!other!values!
ii. Diminishing!Marginal!Utility!–!difference!between!maximization!of!
wealth!and!maximization!of!social!utility!(happiness)!
iii. Endowment!Effect!–!loss!of!property!is!bigger!than!gain!for!
someone!else!
ADVERSE!POSSESSION!
a. Elements!
i. Actual!Possession%
• Ordinary!use!that!others!would!regard!as!exercising!exclusive!dominion!
• Exclusive!(not!sharing!with!owner!or!anyone!else)!
• VV!Rule:!Protected!by!a!substantial!enclosure!(VV!–!logs!and!brush!not!enough)!
or!cultivated/improved!(VV%–!garden!doesn’t!count,!shack/junk!heap!doesn’t!
count)!
• Color!of!Title!Exception:!possession!of!a!piece!of!land!with!faulty!deed!that!says!
you!own!it!could!lead!to!adverse!possession!of!the!whole!piece!(constructive!
adverse!possession);!relaxes!requirement!of!actual!possession!of!the!whole!
piece!
ii. Continuous!Possession%
• Ordinary!use!constitutes!continuousness!(Howard!–!seasonal!use!of!summer!
home!can!be!continuous)!
• Tacking!is!usually!not!allowed!without!privity!(but!sometimes!with!good!faith!
color!of!title!–!Howard)!
iii. Claim!of!Title!!
• Adverse!or!hostile!–!without!true!owner’s!permission!and!inconsistent!with!
true!owner’s!rights!
• Three!Theories!(courts!go!different!ways):!!
a. Must!have!thought!you!owned!it!(good!faith)!
b. Must!have!known!you!didn’t!own!it!(rewards!trespasser,!Maine!rule)!
c. State!of!mind!doesn’t!matter!(Mannilo,%Connecticut!rule)!
i. Van%Valkenburgh!says!can’t!win!if!knew!it!wasn’t!yours!and!
can’t!win!if!didn’t!know!it!wasn’t!yours!(makes!no!sense)!
• If!state!of!mind!doesn’t!matter!(majority!today),!this!remains!important!in!
verifying!that!you!never!relinquished!claim!of!title!to!put!true!owner!off!guard!
(cannot!fake!out!true!owner)!
3.
iv. Open!and!Notorious%
• Must!be!visible!to!true!owner!!
• Must!be!acts!that!true!owner!and!others!should!infer!would!be!exercise!of!
exclusive!dominion!(reasonable!notice!to!true!owner)!!
• Usually!an!issue!in!boundary!disputes!(Mannilo!–!15Hinch!encroachment!is!not!
open!and!notorious)!
b. Purpose!of!Adverse!Possession!Law!
• Efficiency!(reduces!waste)!
a. Incentivizes/rewards!productive!land!use!(efficiency!argument)!
b. Punishes!true!owner!for!sitting!too!long!without!using!land!
c. Quiets!title!–!makes!things!more!certain!
• Fairness!!
a. Personality!Theory:!property!begins!to!define!someone!as!a!human!being,!
owning/using!something!becomes!part!of!you!
b. Endowment!Effect:!more!costly!to!lose!something!that’s!yours!than!to!gain!
something!that’s!not!yours!
c. Reliance!Theory:!honor!expectations,!person!has!come!to!rely!on!use!and!built!life!
around!it,!reward!honest!trespasser!
d. Labor!Theory:!Person!who!has!put!work!into!it!has!earned!right!to!keep!it!
c. Causes!of!Action!
i. Ejectment:!Owner!tries!to!get!rid!of!adverse!possessor!
• SOL!for!this!cause!of!action!is!what!leads!to!adverse!possession!(possessor!can!
then!bring!action!to!quiet!title)!
ii. Quiet!Title:!Either!party!can!bring!so!clear!up!dispute!once!and!for!all!
d. Cases:!
• Van%Valkenburgh%v.%Lutz:!adverse!possession!can!only!be!claimed!when!land!“has!been!
protected!by!a!substantial!enclosure”!or!has!been!“usually!cultivated!or!improved”;!failed!on!
actual!possession!and!claim!of!title%
• Mannilo%v.%Gorski!:!encroaching!steps!case;!(1)!state!of!mind!is!irrelevant;!(2)!small!
encroachments!are!not!open!and!notorious!because!difficult/burdensome!to!survey,!owner!
must!have!actual!knowledge!of!minor!encroachments;!failed!on!open!and!notorious%
i.
Introduces!property/liability!rules!–!may!award!property!but!make!pay!for!
it!in!name!of!fairness/efficiency!
• Howard%v.%Kunto:!Successive!summer!home!purchasers!possess!under!mistaken!deed;!(1)!
continuity!applies!to!ordinary!use!(summer!use!of!summer!home)!AND!(2)!continuity!usually!
doesn’t!apply!to!tacking!but!will!allow!in!the!name!of!fairness;!D!wins!on!challenge!to!
continuity!(both!ordinary!use!issue!and!tacking!issue)!
i.
Privity!(parties!with!the!same!interest!in!a!piece!of!property)!is!the!
relationship!necessary!to!allow!tacking,!occurs!by!contract!of!sale,!gift,!will!
or!other!inheritance!
ii.
Tacking!(adding!the!time!of!possession!of!multiple!owners!to!satisfy!SOL)!is!
allowed!when!successive!owners!are!in!privity!(i.e.!for!a!small!
encroachment)!BUT!usually!not!allowed!for!trespassers!(they!are!not!in!
privity!because!they!have!NO!interest!in!land);!Howard!says!tacking!will!be!
allowed!when!there!is!some!sort!of!good!faith!color!of!title!
e. Other!Rules:!
i. If!owner!is!under!a!disability!or!an!infant!at!the!time!of!an!adverse!entry,!the!statute!is!
tolled!(on!hold)!until!the!disability!ends!(must!bring!within!10!years)!
ii. Can’t!adverse!possess!against!the!government!
iii. Can!only!adversely!possess!on!the!type!of!estate!you!entered!on!
RELIANCE!IN!THE!MARKETPLACE!
• Adverse!Possession!of!Personal!Property!(action!would!be!replevin!to!recover!chattels!wrongfully!taken)!
4.
–!problem!with!traditional!rule!is!that!it!will!never!be!open!and!notorious!
• Three!Possible!Rules!(for!“adverse!possession”!of!chattels):!
i. SOL!starts!when!property!is!stolen!(protects!stealer/bona!fide!purchaser)!
ii. SOL!starts!when!property!is!found!(protects!true!owner,!Guggenheim!Rule)!
iii. Discovery!Rule!–!middle!ground,!used!in!O’Keeffe%v.%Snyder!
• Cause!of!action!accrues!when!the!owner!first!discovers!or!reasonably!should!
discover!through!the!exercise!of!due!diligence!where!the!stolen!goods!are!!!!!!
• SOL!does!not!begin!to!run!as!long!as!the!owner!continues!to!use!due!diligence!
in!looking!for!stolen!goods!
• O’Keeffe’s!failure!to!report!to!police!was!not!due!diligence!!!!!!!!!!!!!
• Reliance!Interest!In!Property!
• Local%1330%v.%U.S.%Steel:!steel!plants!being!shut!down,!union!brings!claim!based!on!reliance!
interest!to!require!either!keeping!plants!open!or!company!to!sell!facilities!to!union!
!
A. ARGUMENTS:!
• Community!Property!H!workers!and!company!mutually!dependent!on!each!
other!after!long!established!relationship!in!which!each!relied!on!the!other’s!
promises;!U.S.!Steel!has!certain!responsibilities!as!a!result!of!this!relationship!
• Labor!Theory!H!earned!property!right!through!a!lifetime!of!work!
• Adverse!Possession!H!justification!for!adverse!possession!gives!the!workers!
some!sort!of!right!here;!if!justification!is!reliance!interest,!then!they!should!win,!
if!it’s!‘sleeping!on!rights’!or!economic!efficiency,!claim!should!fail!
i. In!adverse!possession,!true!owner!and!adverse!possessor!
have!relationship!and!possessor!relies!on!continued!access!–!
possessor’s!interests!grow!over!time!and!true!owner’s!
interest!grow!less!important!over!time!
• Court!denies!this!claim!H!no!precedent!or!statute!gives!authority!to!create!this!
kind!of!right!
B. SINGER’S!TAKE!.!The%Reliance%Interest%in%Property%(Hohfeldian%Theory)!
• Court!should!recognize!workers’!property!rights!arising!from!relationship!with!
the!company,!instead!of!just!looking!at!who!owns!the!property!
• Relational!Theory!of!Property!Rights!(Hohfeld)!H!property!rights!are!never!
unitary!and!absolute,!but!are!always!relational!(should!not!look!at!“who!owns!
it”,!but!what!parties’!rights!and!expectations!are!in!relation!to!each!other)!!
a. Property!is!a!bundle!of!rights!and!privileges!(right!to!possess,!right!to!
use,!right!to!exclude,!right!to!dispose!of,!right!to!destroy,!etc.)!
b. Rights!vs.!Duties!
i. Right:!claim!which!allows!you!to!make!other!people!act!or!
refrain!from!acting!(i.e.!right!to!exclude)!
ii. Duty:!to!respect!the!right!(i.e.!duty!to!get!off)!
c. Privileges!vs.!NoHRights!!
i. Privilege:!permission!to!act!in!a!certain!way!without!being!
stopped!(i.e.!privilege!to!sell!my!house)!
ii. NoHRight:!you!have!no!right!to!stop!me!
d. One!must!always!be!matched!by!the!other.!If!A!has!a!right!against!B,!
this!is!meaningless!unless!B!has!a!duty!to!honor!A's!right!
CREATION!
1. BACKGROUND!.!Labor!Theory!(Locke)!
a. Purpose!of!recognizing!property!by!creation!is!to!reward!labor;!one!owns!the!fruits!of!his!labor!in!
consequence!in!having!property!in!one’s!own!person;!when!you!mix!your!labor!with!something,!
you!gain!a!property!right!in!it;!if!you!take!something!and!greatly!increase!its!value!through!your!
labor!and!expense,!it!becomes!yours!(INS,%Keeble,%Ghen)!
b. IP!Law!Problem:!What!if!utilitarian!theories!and!labor!theories!point!in!different!directions!(INS)?!