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o Exception – INS v. AP, illegal to copy news from another source and then sell
it as own b/c creates unfair competition in business, which is closely related to
ownership in these cases
“Substance of Information” aka facts are common property
“Particular Collection of Words” is the particular expression of the
facts, which can be owned via Copyright
Policy Rationale / Legislative Action – absence of property rights can dampen
production, but recognition of them can create costly monopoly power; Difficult
trade-offs therefore made by Congress
o Patents – granted for novel, useful and nonobvious processes or products
Once issued last for 20 years from date of original application and are
not renewable
o Copyrights – protect the expression of ideas (not ideas themselves) in books,
articles, music, art, etc.
Must be independent creations
Begin as soon as work is tangible and lasts until 70 years after the
death of the creator
iii. Must simply intend to enter (as opposed to being forced onto another’s land /
doesn’t’ matter if unsure whose land it is)
iv. Actual damage or harm to the land is not required for entry to constitute trespass
Rule – a private landowner’s right to exclude others from their property is one of the
most essential sticks in the bundle of rights commonly referred to as property
o The right to protect land and prevent trespassing is meaningless unless
appropriately punished by law Otherwise, society would lose confidence in
legal system
o Right to exclude is essential b/c otherwise, there would be no value in
property rights
Exception – statute which punishes trespasser’s is limited to those who violate rights
of property owners
o Property rights serve human values – they are recognized to that end, and
limited by it
Must balance rights in property against human interest rights, such as
migrant workers – exception to rule of trespass
o Right in real property is not absolute, such as when a service is being done to
aid the public interest on behalf of a government agency
Policy Rationale – right to exclude is essential b/c otherwise, there would be no value
in property rights if cannot exclude, and property would therefore be meaningless
o Courts can only decide who has better title, not the same as best title (true
owner), b/c the Court cannot decide the rights of a party not present in the
case
o Decided Prior Possession is good title against anyone else, unless they can
prove they’re the true owner
Policy Rationale – Finder/Prior Prior Possessor is awarded title of property against all
others, except the true owner, b/c possession is good evidence of ownership
o Favoring the prior possessor reduces violence and uncertainty over found
property so entrenched in our society it even applies to wrongful prior
possessors (thieves)
o True owners use land continuously, and to prevent series of trespassers to add
up and take land by AP
o Can be lapses of time during “continuous” possession if lapses similar to that
of an average owner
o Seasonal occupation of land (summer or winter) is continuous possession
because true owner or potential AP are making the best economic use of the
land
Tacking – occurs when the time of possession of 1 person is added to
the time of possession of previous owner(s) to satisfy the time period
under the statute of limitations
Permitted if successive occupants are in “privity”
Privity – modernly requires some voluntary, intentional transaction
between the parties who time is being “tacked” together (transaction =
sale, gift, or devise)
Required in order to stop a series of trespassers from having
their time tacked together
o Must satisfy all elements of AP continuously!
Actual Possession – established if act as average owner would, taking into account
the geophysical nature of the land
Ex. If rural land, use as such, grazing cattle, cutting hay, etc
Want level of use of land to show claim of ownership
Open and Notorious (synonyms) – established if ownership/use of the land is
conducted in a manner which would put person of ordinary prudence on notice of the
claim
Ex. Put up fence or trespasser beware signs, etc
Purpose is so true owner is made aware and can take action to reclaim
land True owner must have opportunity to object
Actual knowledge by true owner is required to establish AP
o Minor Boundary Encroachments – no presumption of knowledge arises from a
minor encroachment along a common boundary only where the true owner
has actually knowledge thereof may it be said that the possession is open and
notorious
1. Innocent Improver Doctrine – Manillo v. Gorski
Modern “Balancing of Equities”
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A person with voidable title has the power to transfer a good title to a
good faith purchaser for value
“Good Faith” means behaving honestly and having no reason
to suspect that the seller lacks title
May buy from anyone, not just merchants AND need not
purchase in ordinary course of business
After such transfer occurs, true owner can sue wrongdoer, but
CANNOT recover the goods from the BFP for value
c. Statutory Estoppel (Entrustments) – UCC 2-403(2)
Any (1) entrusting of possession (2) of goods (3) to a merchant (4)
who deals in goods of that kind gives him power to transfer all rights
of the entruster (5) to a buyer in the ordinary course of business
“Entrusting” includes any delivery (voluntary transfer of
possession) and any acquiescence in retention of possession
regardless of any condition expressed between the parties (even
under larcenous conditions)
“Buyer in the ordinary course of business” if the sale to the
person comports with the usual and customary business
practices in the kind of business in which the seller is engaged
or seller’s own usual practices
If 5 conditions met, the merchant can transfer all of the entruster’s
rights to a buyer
BUT only the entruster’s rights and no more
Ex. If a thief entrusts, good title does not transfer
Provides more protection to true owners than the BFP rule does
Buyer must still act in good faith
d. Equitable Estoppel (Estoppel in Pais) – Common Law
A party is absolutely precluded from denying any material fact which
by his words or conduct has induced another to believe or act upon
such [if that other person would be harmed by the denial]
Inducement can be intentional or through culpable negligence
Owner may be estopped from setting up his own title, as against a
bona fide purchaser for value, where the owner has “clothed the
vendor with possession AND other indicia of title” (ex. Owner gives
vendor apparent authority to dispose of the goods)
Zendman v. Harry Winston
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3. Acceptance
4. Donor’s expectation of imminent death
Most donatio causa mortis decisions involve a donor
confronting the substantial certainty of death in the near future
from a particular illness or affliction, i.e. cardiac patient about
to undergo a risky operation
Gift made by donor contemplating suicide may meet
this standard
But, a donor’s natural apprehension of death in the
distant future does NOT support a donatio causa mortis!
o Cannot create or transfer an estate greater than the one you have
o Estates may be created by conveyance (deed) or by devise (will)
o A living person has no heirs!
Defeasible because by terms of their creation, they’re all subject to early termination
(before heirs run out)
Even though listed below, not lesser estate than FSA
No re-entry called for, third party (B) gets right to immediate
possession automatically if stated event occurs
o Future Interest – executory interest
B. Future Interests
Time of Enjoyment is distinction between present and future interests
For Grantor’s Only:
o Reversions – future interest retained by grantor
o Possibility of Reverter
o Rights of Re-entry/Power of Termination
For Person’s Other than Grantor”
o Remainders
o Executory Interests
i. Reversion – any future interest retained by the grantor that follows upon the
expiration of any estate that is less than any kind of defeasible fee; includes
these estates:
a. Life Estate
b. Term of Years
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c. Periodic Tenancy
d. Tenancy at Will
o All reversions are vested!
ii. Remainder – any future interest in someone other than the grantor that follows
upon the expiration of any estate that is less than any kind of defeasible fee
a. Indefeasibly Vested Remainder – remainder given to someone who is:
1. Born
2. Ascertainable
3. As to which there are neither express preconditions a party
must meet to receive it (no “conditions precedent”), nor
conditions he must meet to keep it
Ex. “O to A for life, then to B”, “O to A for 10 years, then to
C”
b. Contingent Remainder – a remainder:
1. Given to someone who is unborn
2. Given to someone who is not ascertainable, OR
3. Which can only become possessory after a condition precedent
Look for words like “if”, “should”, “provided that he first”
Ex. “O to A for life, then to B if he passes the exam”
“O to A for life, then to B should he be married”
c. Vested Remainder Subject to Defeasance – reminder in which there
are no conditions to the recipient’s taking, but as to which there are
express conditions to keeping it
Look for condition expressed in terms of the holder’s losing the
interest
Ex. “O to A for life, then to B, but if he consumes liquor on the
premises, then to C”
iii. Possibility of Reverter
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If the preceding estate expires and the condition precedent for the remainder has not
occurred, the remainder is destroyed
o Largely abolished (3/4 of states)
Example – “O to A for life, then to B when he is 21” A dies while B is 15
o If in jurisdiction where destructibility of contingent remainders applies
contingent remainder is destroyed, property reverts back to O
Modern Approach – reverts to O until B reaches 21
o O’s interest becomes fee simple subject to an executory limitation, with a
springing interest
5.) THE RULE AGAINST PERPETUITIES
Rule – “No interest is good unless it must vest, if at all, not later than 21 years after
some life in being at the creation of the interest”
o Translation – an interest is “bad” if:
1. It will NOT definitely vest w/in the perpetuities period
2. And, it will NOT definitely become incapable of vesting
o Remember, in most cases an interest vests when it has the right to become
possessory
o Exception – executory interests vest when they actually become possessory
Policy Rationale – created to invalidate future interests that might vest to far in the
future
o Because during the period that the interest has not vested, but is still capable
of vesting, we are uncertain as to whether a future interest will become
possessory
o So land isn’t tied up for a long period of time, encourages development of
land, etc
Advantages of RAP
o Balances desire of current owner to determine what will happen to his
property in the future against desire of eventual holders to be free from “dead
hand” control
o Increases control of the living, who are in a better position to determine how
property can be used productively
Key Point (Often Forgotten) – RAP is applied to an interest at the time the interest is
created, and ends 21 years after the death of someone alive when the interest was
created
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o If, at the time, we do not know for sure whether the interest will: (1) definitely
vest within the perpetuities period OR (2) definitely become incapable of
vesting (will definitely fail)…
o Then, the interest is void from the moment it was created
True, even if it is very likely the interest will vest
The Create, Kill, and Count Approach
i. Create someone born AFTER the interest is created
ii. Immediately kill off everyone else alive at the time of the conveyance
iii. Count 21 years
iv. If you can think of any conceivable scenario under which the interest could vest
in that person, but only after 21 years, the interest fails RAP
If fails, interest is INVALID
If you cannot create a scenario, interest is good
o Examples
O to A for life, then to A’s first child to get a tattoo. A has 2 tattoo free
kids, B and C
Create X, child of A
Kill off everyone else
Count 21 years
Interest could vest after 21 years, X could wait 25 years to get a
tattoo
RAP violated – INVALID
O to A, then to B if B is alive when A’s interest ends
Cannot create anyone because goes to B
Interest is VALID
Mary to Jane for life, then to Jane’s first child and his heirs. Jane has
no children
Create X, Jane’s child
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D. Concurrent Interests
Deal with situations in which more than one person owns and has the right to possess
the same interest at the one time
Ex. Husband and Wife jointly own a house in FSA
o Both own equal shares and have a concurrent right to possession
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o For ease of comprehension, assume, unless told otherwise, that all interests we
discuss are owned in FSA
KEY – though tenants own a “share” of the property, it is an “undivided” share,
meaning they each own ALL of the property
o This may be done unilaterally and w/o consent of other joint tenants
Ex. A B & C own 1/3 undivided shares as JTWROS
A conveys to Q, B dies – Q’s share does not increase, but C’s does
o Harms v. Sprague
The voluntary or involuntary destruction of any one of the unities by
one of the joint tenants will sever the joint tenancy
A lien on a joint tenant’s interest in property will not cause a severance
of the joint tenancy, absent the conveyance by deed following the
expiration of a redemption period (time period during which a former
owner can reclaim foreclosed real estate property)
B. The Lease
Must be in writing if the term is for a year or more
Historically, lease was treated as a conveyance
o Meant LL had few implied obligations
Modern trend, lease is treated as a contract
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