Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
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a. Mahrenholz v. County Board of School Trustees (transferring land to a school for school purpose
FSSEL)..............................................................................................................................................................27
a. Mountain Brow Lodge No. 82, Independent Order of Odd Fellows v. Toscano (no selling to anyone
that isn’t us)...................................................................................................................................................27
I. Future Interest...............................................................................................................29
i. possibility of reverter...............................................................................................................29
ii. right of entry............................................................................................................................29
iii. Reversion.................................................................................................................................29
iv. Remainder...............................................................................................................................29
Types of Waste.................................................................................................................................32
Remedies for Waste..........................................................................................................................33
J. Restraints on Alienation.................................................................................................33
K. Co-ownership and Marital Interests...............................................................................34
a. There are 3 varieties of co-tenancy..........................................................................................34
b. Types, Characteristics, Creation...............................................................................................34
i. Joint Tenancy............................................................................................................................34
ii. Tenancy in Common.................................................................................................................35
iii. Tenancy by the Entirety............................................................................................................35
c. Severance of Joint Tenancies...................................................................................................35
d. Granting of Mortgage..............................................................................................................36
a. Harms v. Sprague (lien on my half of the property)...........................................................................36
e. Lease........................................................................................................................................37
1. Swartzbough v. Sampson (conveyance to third party severs tenancy entirety)....................37
f. Partition...................................................................................................................................37
1. Delfino v. Vealencis (garbage business v. residential housing)..........................................................38
g. Relations Among Concurrent Owners......................................................................................38
h. Sharing the Benefits and Burdens of Co-ownership.................................................................38
L. Leaseholds: The Law of landlord Tenant.........................................................................40
a. The Leasehold Estates..............................................................................................................40
i. The Term of Years....................................................................................................................40
ii. The Periodic Tenancy...............................................................................................................40
iii. The Tenancy at Will..................................................................................................................41
i. Garner v. Gerrish (only I get to terminate the lease).........................................................................41
iv. The Tenancy at Sufferance: Holdovers.....................................................................................41
b. The Lease.................................................................................................................................42
c. Selection of Tenants.................................................................................................................42
d. Duties, Rights and Remedies....................................................................................................42
i. Village Commons LLC v. Marion County Prosecutor’s Office (flooding in the office)........................43
ii. Condition of the Premises........................................................................................................44
iii. Remedies.................................................................................................................................45
e. Tenants Duty...........................................................................................................................46
f. Transfer and Sale by Lessor; Assignment and Subletting by Lessee..........................................46
g. Assignment..............................................................................................................................47
h. Rights of parties after Assignment...........................................................................................47
i. Sublease..................................................................................................................................48
j. Covenants Running with the Land............................................................................................48
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i. Elements:.................................................................................................................................48
M. Judicial Land Sue Controls: The Law of Nuisance........................................................50
a. Morgan v. High Penn Oil Co.....................................................................................................50
e. Defenses Defendant May Raise...............................................................................................51
f. Remedies.................................................................................................................................51
i. Estancias Dallas Corp. v. Schultz..............................................................................................51
ii. Boomer v. Atlantic Cement Co. (Restatement Test – profitable business to pay permanent
damages)..........................................................................................................................................52
iii. Spur Industries, Inc. v. Del E. Webb Development Co. (residential housing next to cattle
feed)52
g. Lateral and Subjacent Support.................................................................................................53
h. Water Rights............................................................................................................................53
i. Air Rights.................................................................................................................................54
N. Private Land Use Controls: The Law of Servitudes..........................................................55
a. Introduction: Classifying Servitudes.........................................................................................55
b. Creation of Easements.............................................................................................................55
1. Express.....................................................................................................................................55
2. Implication...............................................................................................................................56
Van Sandt v. Royster (sewage coming through)............................................................................................57
3. Necessity..................................................................................................................................57
Othen v. Rosier (1 man, 4 conveyances, 2 people)........................................................................................57
4. Prescription..............................................................................................................................58
5. Estoppel...................................................................................................................................59
Holbrook v. Taylor (easement is revoked after P’s build a house).................................................................59
c. Transfer and Subdivision of Easements....................................................................................59
d. Termination of Easements.......................................................................................................59
e. Licenses...................................................................................................................................60
O. Covenants Running with the Land..................................................................................61
c. Covenants Enforceable in Equity: Equitable Servitudes...........................................................61
Sanborn v. McClean (building a gas station in a strictly residential area).....................................................62
2. Tulk v. Moxhay (I knew of the covenant but my deed didn’t mention it).........................................63
d. Termination of Covenants........................................................................................................64
a. Nahrstedt v. Lakeside Village Condominium Association, Inc. (1994).................................................64
P. Zoning............................................................................................................................65
Euclid v. Ambler Reality Co. (cumulative ordinance)..............................................................65
1. State Ex Rel. Stoyanoff v. Berkeley (aesthetic zoning - denied permit to build modern house
in traditional neighborhood)............................................................................................................65
i. Zoning Administration.............................................................................................................66
1. P.A. Northwestern Distributors, Inc. v. Zoning Hearing Board (you have 90 days to take the porn and
go) 66
ii. Exclusionary zoning..................................................................................................................67
iv. Southern Burlington County NAACP v. Township of Mt. Laurel (no housing for the poor people).....67
Kelo v. New London (big company to create jobs in town)..................................................................68
Hadacheck v. Sebastian (clay business gone due to ordinance)..........................................................68
i. Implicit Takings – Regulatory Takings......................................................................................69
a. Loretto v. Teleprompter (you must provide the tenants cable)........................................................70
b. Pennsylvania Coal Co. v. Mahon (keeping subsurface rights to mine coal)......................................70
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ii. Historical and Environmental Preservation..............................................................................71
Penn Central Transportation Co. v. Mahon (no office building on grand central)......................................71
iii. Tahoe-Sierra Preservation Council, Inc. v. Tahoe Regional Planning Agency (2002) (temporary
regulation is not a taking)..............................................................................................................................72
iv. Murr v. Wisconsin................................................................................................................................73
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Acquisition of Property by First Possession
Acquisition by Discovery
Rights of Possessors - One who obtains title to goods by acquiring them from,
and with the consent of, their prior owners.
1. Discovery – sighting or finding of unchartered territory.
2. Conquest – taking possession of enemy territory through force, followed by
formal seizure of the defeated territory by the conqueror.
3. Occupancy – the person who is on land has legal rights to the land.
Theories of Property Rights
1. First in Time – prior in time is venerable in right.
2. Locke’s Labor Theory - Every man has property in his own person.
a. The labor of his body and the work of his hands are his.
b. Whatsoever he removes out of the state of nature, he mixes his labor
with it and joins to something that is his, makes it his property.
c. Right to exclude the common right of other men.
Relevant Cases
Johnson v. M’Intosh (taking over the Indians land)
Rule: Discovery of land gives exclusive rights to settle, possess,
and govern new land, and absolute title to soil, subject to certain
rights of occupancy only by natives.
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A. Acquisition by Capture
There are few situations where one may obtain title or a rough equivalent, by
the mere fact of possessing the article: (1) wild animals, (2) the finding of lost
articles; and (3) adverse possession.
i. Wild animals (ferae naturae) - no one owns animals that are wild by nature;
therefore, no one has 'title' to them or a 'vested' right to own them.
a. Achieving first possession and thus ownership, requires the following 4
elements:
Maintaining pursuit, and/or;
Fatally wounding or killing the animal
Intent to appropriate the animal to individual use, thereby
Depriving the animal of its natural liberty (bringing it within
the hunter's control)
ii. Fugitive Resources
i. Resources that wander from place to place.
Ie. oil, gas, water
ii. Rule of capture is applied oil and natural gas – landowner has property right in
oil and gas produced from wells on the owner’s land, whether or not it migrated
from other lands.
iii. Groundwater – first governed by rule of absolute ownership (whoever captured
the water, was its owner)
iii. Tragedies of Commons and Externalities
i. Tragedy of commons – collective action problem – individual interest to exploit
a collective resource, but it is in the community’s interest that the collective
resource be managed sustained.
Resources in common will always be abused absent coercive
intervention by the gov’t.
ii. Externality – when an actor makes a decision without taking into account the full
effects – negative or positive – of that decision because these effects fall on
others – “external” to the actor.
Hold out – payments must be made to a group in order to
carry out a transaction.
Free rider – efforts are made to extract contributions from
members of a group in order to carry out transactions that will
confer collective benefits on the group (contributors and non-
contributors alike).
Relevant Cases
b. Pierson v. Post (battle over the fox)
Rule: Mere pursuit of an animal does not give one a legal
right to it, must mortally wound or greatly maim whilst the
pursuit of the person inflicting the wound continues, that is
sufficient for a legal right to the wild animal.
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Dissent: Bodily touch is not imperative, provided that the
animal is within reach, or the hunter has the reasonable
prospect of taking the animal; and the hunter has the
intention to convert the animal to his/her own use. (hot
pursuit = possession)
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Plaintiff Defendant Reasoning
The court can look to
The party who harpoons Unaware of the identity custom and usage
the whale is the owner of the person that killed within an industry to
even if someone else later the whale. determine the rule of
discovers it on the shore. law regarding the
ownership of property -
the industry would
suffer if whalers could
so easily lose the fruits
of their efforts by
allowing another party
to lay claim to the
whales they took the
effort to hunt down.
(Locke’s Labor Theory)
d. Popov v. Hayashi
Rule: When an actor takes significant but incomplete steps to
achieve possession of a piece of personal abandoned property
and it's interrupted by the illegal acts of others, the actor has
a legally recognizable pre-possessory interest in the property.
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B. Right to Exclude
Grants an absolute right to exclude some persons on a whim and admit others
only by mutual consent.
o A series of intentional trespasses, can threaten the individual’s very
ownership of land.
Policy argument: Private landowners should feel confident that
wrongdoers who trespass upon their land will be appropriately
punished - so are less likely to resort to self-help remedies.
Society has an interest in punishing and deterring intentional
trespassers beyond that of protecting the interest of the
individual landowner. . . An interest in preserving the integrity of
the legal system.
Patent Law
Right to exclude others from making or using an invention without the patent
holder’s permission.
Relevant Cases
a. Jacques v. Steenburg Homes (crossing private land
to deliver homes after they said no)
i. Rule: Under Wisconsin law, a jury has discretion to award punitive
damages for intentional trespasses, even if compensatory damages
were not warranted and only nominal damages were awarded.
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i. Rule: The ownership of real property does not include the right to
refuse access to individuals providing government services to
workers who are housed on the property.
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C. Right to Abandon
i. Elements of Abandonment:
i. Owner must intend to relinquish all interests in the property, with no intention
that it be acquired by any particular person
ii. There must be a voluntary act by the owner effectuating the intent.
Policy Argument - Benefits of abandonment
o Facilitates the transfer of a resource from someone who does not value it
very highly to someone who does, that it allows an owner to transfer a
resource without having to devote effort to discovering who might want
or deserve it, and that the availability of a right to abandon a resource
may prevent an owner from exercising his right to destroy or deplete a
resource.
Relevant Cases
a. Hawkins v. Mahoney (Escaped inmate requested his
personal belongings when he was returned 2 days
later).
Rule: Abandoned personal property may be appropriated by
anyone, unless such property has been reclaimed by the prior
owner first.
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Plaintiff Defendant Reasoning
The person who has the
Conduct manifests an intent Ownership of land is a record title is presumed
to abandon – no obligation perfected title-fee to be in possession of
to pay land fees. simple- you cannot the property. Perfect
simply abandon a perfect title cannot be
title. abandoned.
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D. Right to Destroy
i. A fee simple interest in property cannot be abandoned.
ii. Personal property can be abandoned.
a. Eyerman v. Mercantile Trust Co. (old lady wants
house destroyed but gated community wants no new
neighbors).
Rule: When a landowner attempts to compel his successor in
interest to do to the land something against public policy, the
law steps in and pronounces the condition void.
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E. Acquisition by Find
General Rule - A finder of property acquires no rights in mislaid property, is
entitled to possession of lost property against everyone except the true owner,
and is entitled to keep abandoned property.
i. Abandoned property – items intentionally and voluntarily relinquished, with no intent
to reclaim.
ii. Finders of lost articles - the finder of lost property holds it, at least for a certain time,
in trust for the benefit of the true owner; custodian or bailee for the true owner; the
finder has rights superior to those of everyone except the true owner.
i. Possession derived from trespass - even if the possessor has obtained
possession wrongfully, he will be entitled to recover from a third person who
interferes with that possession.
ii. Damages – most courts allow the possessor the right to recover the full value of
the object from the third party who has taken it.
a. C/L action of trover – entitles the plaintiff to the objects value, and lets the
defendant keep the object.
iii. Article lost by possessor – a possessor who loses the property after finding it or
otherwise acquiring it may recover it from the third person who subsequently
takes it.
iv. Conflict with the owner of real estate – when the person who finds the item is
not the owner of the real estate in which it is found:
Trespasser – the owner of the real estate where the object is
found gets it.
Lost property – property that has clearly not been
intentionally deposited by the owner is likely to be awarded to
the finder.
Mislaid property – an object that was intentionally put in a
certain place, and then forgotten by its owner. Such mislaid
objects are usually held to have been, in effect, placed in the
“custody” of the landowner, therefore, the finder does not
obtain the right to possession.
Relevant Cases
a. Armory v. Delamirie (chimney sweep found the jewel,
Apprentice at jewel shop would not give it back to
him).
Rule: A person who finds a piece of chattel has a possessory
property interest in the chattel, which may be enforced
against anyone except the true owner of the chattel.
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Plaintiff Defendant Reasoning
When someone has
Prior possessor prevails Person who found the acquired possession of
over a subsequent object is not the true property, even if by tort,
possessor. owner – thus has no they have a right to that
rights of possession to property against a third
the thing in question. party/wrongdoer – to
prevent an endless
series of unlawful
seizures.
Not always followed –
when a subsequent
possessor is honest,
often prevails.
Claim of Right – a reasonable basis for the belief that the property belongs to
the adverse possessor or property owner.
o Objective (actions)
Actions of a possessor must look like they claim ownership, even
if he is not actually claiming title over the true owner.
Majority view – Policy Argument
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a. If we care about certainty and clarity – this position
makes the most sense.
b. State of mind is irrelevant - requirement of showing
subjective intent of the possessor adds unnecessary
complication to the inquiry.
o Subjective (intent)
If he knew the land wasn’t his and still would not claim it, he is
not adversely possessing the land.
Minority view
o Good faith - “I thought I owned it.”
The adverse possessor has a bonafide good faith belief that he
has title.
Policy Arugument
a. If we want to create disincentives for trespass, this
position makes the most sense.
o Bad faith (aggressive trespass) – reasons for?
Formalistic – only actually adverse if bad faith.
Required state of mind – “I thought I didn’t own it, but I intended
to make it mine.
ADVERSE – without the owner’s consent.
o Hostility is determined by looking at the possessor’s actions, and his
statements to the owner and to others.
Squatter – one who takes possession of land while
acknowledging he has no right to be there may NEVER gain title
by adverse possession, no matter how long his occupancy of the
land was undisturbed.
o Boundary Dispute - mistaken but honest belief he has claim to the
property in question.
Majority – one who possesses an adjoining landowner’s land,
under the mistaken belief that he has only possessed up to the
boundary of his own land, meets the requirement of “hostile”
possession, and will become an owner by A.P.
Minority – the possessor in this kind of mistaken boundary
situation does not hold “hostilely, if It can be shown he would
not have held the land had he known that he lacked title to it.
Length of Time Required
Statutory period - basic length of time the property must be adversely
possessed. Can be shortened if one pays taxes on the property or has “color of
title.”
o Disabilities – if the true owner is under a disability, he is given extra time
within which to bring an ejectment action.
An action to recover title to or possession of real property shall
be brought within 21 years after the cause of action accrued,
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but if the person entitled to bring such claim, at the time the
cause of action accrues, is within the age of minority, of
unsound mind, or imprisoned, such person, after the expiration
of 21 years from such time the cause of action accrues, may
bring such action within 10 years after such disability is
removed.
o Disability must exist at time adverse possession began – disability is
immaterial if it did not exist at the time the cause of action accrued.
Rights of the Adverse Possessor (before statutory period ends)
Prior to the end of the statutory period, the adverse possessor has not obtained
title to the property but he has some rights, against persons other than the true
owner.
o Suits against third person – the adverse possessor is entitled to bring a
trespass action against one who enters the land.
o True owner – if the owner brings suit before the expiration of the
statutory period, he can recover mense profits, an amount equal to the
reasonable value of the land for the period that the adverse possessor
has held it.
Rights After Expiration of the Statutory Period
Adverse possessor gains title.
Easements may not be extinguished – holder of an easement normally does not
have a right of action against a mere possessor, so there is nothing for the
statute of limitations to run against.
Not against interest of government – generally, it is not possible to gain title by
adverse possession to land owned by federal government, or by a state or city.
o “Time does not run against the king.”
o Only the legislature may divest the State of title.
o Possession of public lands by a third party constitutes a public nuisance
that no period of acquiescence will justify.
o We are not imposing an undue burden on municipalities by expecting
them to discover within the relevant period of limitations what property
they own and who possesses it.
Adverse Possession of Chattels
The burden of proof is on the owner because she should know where property is
located and can be reasonably expected to know if the elements are met.
The effect of the expiration of the statute of limitations – like adverse possession
– will be to vest title in the possessor.
Permits tacking by parties in privity - not separate acts of conversation that
would start the SOL running anew.
Relevant Cases
a. Van Valkenburgh v. Lutz
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i. Rule: A party takes adverse possession of a property owned by
another when he takes actual possession of it, encloses it and/or
makes improvements to it, for statutory period of years.
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Plaintiff Defendant Reasoning
Previous owner's use of
Defendants have failed to Succession of trespasses, land does count towards
prove a continuity of even though there are subsequent possessor's
possession to permit no appreciable interval statute of limitations.
tacking of the adverse between them, should Use still continuous if
possession of defendants not, in equity, be allowed under ordinary use.
and their predecessors. to defeat record title. Summer homes need
only be used in that
season and this suffices
as continuous use.
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Modern trend – the true owners cause of action accrues “when she first knew,
or reasonably should have known through the exercise of due diligence, of the
cause of action, including the identity of the possessor.
Discovery rule – if the true owner, immediately after the loss, fails to use
reasonable diligence to find the possessor, and the use of such diligence would
have identified the possessor, the statute of limitations will begin to run
immediately, even if the possessor keeps the property hidden.
o Even if the possessor displays the property openly, if the owner fails to
learn that the possessor has it (and this failure is not due to the owner’s
lack of diligence), the statute of limitations because open and visible
possession of personal property may not be sufficient to put the original
owner on actual or constructive notice of the identity of the possessor.
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G. Acquisition by Creation
i. Policy Argument - If too little ownership is given to the creator, people will not have
adequate incentive to invest time and money in creating and exploiting the idea. But
if too much private property is created in ideas, this would limit our autonomy and
block desirable economic activity by creating insuperable transaction cost.
i. Non-rivalrous – use of it does not interfere with the use of it by other people.
ii. Non-excludable – difficult to prevent people from using it.
iii. Often defended on the basis of Locke’s labor Theory - the fruits of your labor
are not always yours alone to exploit, and you do not always have full rights of
property in your own person.
Patents
A patent is a limited duration property right relating to an invention, granted by
the United States Patent and Trademark Office in exchange for public disclosure
of the invention.
To be patentable, an invention must be:
o Novel – invention must be new, not previously invented or discovered
“First in file” system – inventor must promptly “file” the invention
with the Patent and Trademark Office, or risk forfeiting
patentability, before:
Someone else files for a patent on the same invention
The invention is disclosed in print; or
The invention is put in public use, on sale or otherwise
made available to the public.
o Nonobvious - differences between the claimed invention and the prior
art are such that the claimed invention as a whole would have been
obvious before the effective filing date of the patent.
o Useful
Copyright
a. protects the expression of ideas, embodied in books, articles, musical forms,
works of painting and sculpture, motion pictures etc.
o Copyright Act – gives certain rights to owners of “original works of
authorship” that are fixed in any tangible medium of expression.”
To be copyright infringement:
Ownership of a valid copyright
Copying of constituent elements of the work that are
original.
o Rights given to the copyright holder:
Right to reproduce
Right to prepare derivative works
Right to sell, rent or lease copies
Right to preform work publicly
Right to display the work publicly
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o Material must be “original” but not “novel” as in never having existed
before.
o Ideas and facts not copyrightable – only original “expressions” of ideas
or fact can be protected.
o When protection begins – as soon as the work is created in a tangible
medium; whether or not there is a copyright notice on the work.
o Registration – not required in order to gain copyright protection –
however, the owner cannot bring a copyright infringement action
without first registering.
o Duration or protection – depends on what type of person owns the
copyright
i. Author – lasts for the life of the author plus 70 years, after which
the work enters public domain and may be used by anyone.
ii. Work for hire – (1) the work was prepared by an employee within
the scope of her employment – work belongs to employer or (2) the
work was specially order or commissioned – work belongs to
commissioning person
1. Will enter public domain typically 95 years after its first
publication.
Trademarks
b. Name, symbol, type of packaging or other means of identifying the producer of a
good or service.
c. Trade secret – legal term referring to any information, whether or not
copyrightable or patentable, which is not generally known or accessible, and
which gives competitive advantage to its owner.
d. Lanham Act – federal statute protecting trademarks; applies only to goods not
services
o Service mark – used to identify a service rather than a good.
e. Gives the owner of a “mark” the exclusive right to use the mark in connection
with the sale of a particular good or service in a particular geographic area.
i. Entitles owner to get an injunction against anyone else who adopts
the same or other confusingly similar mark.
Relevant cases
a. International News Service v. Associated Press (east
coast news printed stolen news from the west
coast).
i. Rule: A quasi-property right exists in published news such that
appropriating the published news gathered by another for further
commercial purposes constitutes unfair competition in trade.
ii. C/L – property rights is limited to the chattels which embody his
invention - others may imitate at their pleasure.
iii. Hot news doctrine – a news gatherer may recover from D when:
i. Gathering/collection process involves significant
expenditures
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ii. Collected news is time sensitive
iii. D free rides on collected material
iv. Free riding directly competes with news gatherer market.
v. The freeriding is likely to diminish incentives.
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H. POSSESSORY ESTATES.
i. Estate - an interest in land with 2 characteristics:
i. May become possessory
ii. Measured in terms of duration.
ii. Freeholder – owner status
i. Fee simple (absolute or defeasible)
ii. Life estate
iii. Non-freeholder – lessor status
i. Estate for years
ii. Periodic estate
iii. Estate at will
iv. Estate at sufferance
Fee Simple Absolute (FSA)
Most unrestricted estate – infinite duration
Inheritability – if the owner of a fee simple dies without any direct descendants,
and without a will, then his collateral relatives will inherit the property.
C/L – necessary to use “and his heirs” to create FSA. – today, not necessary.
o Life estates was assumed at C/L
Life Estate
Estate is measured in terms of the life of the grantee.
o Has the exclusive right to lease out the premises, but not beyond the
term of life tenant’s own life.
o May convey any interest in the property, up to and including the entirety
of his own interest.
o Cannot sell without the permission of all future holders or court order.
o Duties of the life tenant
Waste: an unreasonable impairment of the value the property will
have when the holder of the future interest takes possession.
Affirmative waste – acts that substantially reduce the
value of property.
Permissive waste – failure to take reasonable care of
property.
Ameliorative waste – altering the land in a way that
increases value but changes it substantially (not permitted
at C/L – today, generally accepted).
Per autre vie – estate measured by some other person than the grantee’s life-
span.
o Upon the death of a life tenant, the estate may continue, since the
measuring life may still exist.
Restraints on Alienation
Express restraint – withholds from the grantee power of transferring his interest
in the deed. (void)
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Use restraint – if the grantee attempts to transfer his interest, it is forfeited to
another person. (valid)
Mountain Lodge and Falls City Test
Relevant Cases
a. White v. Brown (confusing will cause issues beyond
the grave)
i. Rule – Rules of construction of an ambiguous will favors a
conveyance of fee simple absolute.
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o FSD is accompanied by a future interest – possibility of reverter
C/L – possibility of reverter descended to heirs upon the death of
the owner of such interests – neither interests are transferable
during life.
Fee Simple Subject to Condition Subsequent (FSSCS)
o Does not automatically terminate but may be cut short or divest at the
transferor’s election when the stated condition happens.
Grantor must re-enter and retake the premises for property to
revert back.
Unless and until entry is made, fee simple continues
o “but if,” “provided, however,” “on the condition that,” signify a FSSCS.
o FSSCS is accompanied by a future interest of right of entry or power of
termination.
C/L – right of entry was not transferable – today transferable and
devisable.
Fee Simple Subject to Executory Limitation (FSSEL)
o Defeasible fee with a future interest in a 3rd party – when a grantor
transfers a FSSCS and creates a future interest in a 3rd party rather than
himself.
o FSSEL is followed by an executory interest.
Condition that is broken does not transfer to a 3rd party.
Anyone who receives the property through the first party must
follow the condition/limitation.
Relevant Cases
a. Mahrenholz v. County Board of School Trustees
(transferring land to a school for school purpose FSSEL)
i. Rule: A person who holds a “right of re-entry for condition broken”
must take steps to reclaim the property after the condition has been
broken in order to secure title in the land.
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a. Mountain Brow Lodge No. 82, Independent Order of
Odd Fellows v. Toscano (no selling to anyone that
isn’t us).
i. Rule: When real property is conveyed between parties, any
limitation on the grantee’s rights to alienate the property is void as a
matter of public policy, but, limitations on the acceptable uses of the
property by the grantee are enforceable.
i. Formalist test – based on form
ii. Based on the effect – effect of alienation
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I. Future Interest
i. A future interest confers rights to the enjoyment of property at a future time.
ii. 5 kinds of future estates:
i. possibility of reverter – when a FSD comes to an end, possession reverts
to the grantor.
possibility of reverter is inheritable under the intestacy
statute, and devisable by will.
Becomes possessory automatically upon the happening of a
stated event.
Since it not certain it will occur, the word possibility is used.
ii. right of entry – if the holder of an interest in land conveys all or part of his
interest, the transferor is said to have a right of entry – ability to take back the
estate if the condition subsequent occurs.
Becomes possessory if the transferor exercises her right to re-
enter or retake upon the happening of the stated condition.
iii. Reversion (created in the grantor) – non-contingent prospect of getting the
property back - created when the holder of a vested estate transfers to another,
a smaller estate; interest which remains in the grantor.
Not necessary that the grantor specifically reserve a reversion
in himself; as long as the estate conveyed is legally smaller
than the grantor’s original estate, he retains a reversion.
At C/L, if an owner created a freehold estate for a term of
years, the grantor was not said to retain a reversion – instead
continued to hold the seisin in the land.
If a reversion can never become possessory, it is said to have
been divested.
iv. Remainder (created in someone other than grantor) - A remainder is a
future interest that is capable of becoming possessory at the termination of the
prior estate – never cuts off a prior interest, awaits its natural termination.
i. Grantor must convey a present possessory estate to one transferee.
ii. Must create a non-possessory estate in another transferee, by the
same instrument.
C/L - No remainder after any kind of fee simple.
Whether a future interest is a remainder is when the prior
interest is a life estate.
Vested – (1) certain to become possessory whenever and however the prior
estate terminates (no condition precedent attached) and (2) can say at the
moment of creation who will take possession.
1. Have always been transferable during a lifetime.
i. Indefeasibly vested – certain to become possessory at some future
time – will suffice that either the remainderman or his successors in
interest will someday take possession.
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ii. Vested remainder subject to open – possible to point to one or more
persons and say that they or the successors are certain to have a
possessory interest someday, but there remains a chance others will
share this interest.
iii. Vested remainder subject to complete divestment – cannot be said
with certainty interest will ever become possessory – defeasance may
occur through natural termination or divestment.
1. Naturally expired before all prior interests ended.
2. Executory interest – cuts off the remainder prior to natural
termination.
3. If a grantor retains a right of entry if the remainderman
does not meet a certain condition, the remainder is vested
subject to divestment.
Contingent – not certain to become possessory - (1) remainder is subject to a
condition precedent that might not occur by the time the prior estate terminates
or (2) the remainder has been created in favor of a person who is at the time of
creation either unborn or unascertained (heirs of a living person).
i. Condition precedent – some condition must be met before the
remainder could possibly become possessory is by itself enough to
make it contingent.
ii. Alternative contingent remainders – a condition precedent involves
survivorship.
iii. If the condition is incorporated into the clause that gives the gift,
then the remainder is contingent.
iv. if one clause creates and the subsequent clause takes the remainder
away, it is vested (subject to divestment).
v. C/L – not transferable inter vivos (during lifetime), was not assignable
(unreachable by creditors)
vi. At C/L – doctrine of destruction – a contingent remainder was
destroyed if it did not vest upon termination of the proceeding life
estate.
“but if” – indication that the remainder is vested subject to
divestment -being taken away.
“then if” – indication of condition precedent, contingent
remainder
where it is not clear whether the remainder is contingent or
vested, most courts show a preference for the vested
construction.
Destruction of a Contingent Remainder at C/L
C/L – a contingent remainder was deemed “destroyed” unless it
“vested at or before the termination of the preceding freehold
estates.
o Rule regarding seisin – freehold interest could not spring out
of the estate of the grantor at some future time.
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o “Springing” would take place at a time other than the time
when the original conveyance was made (violates the rule
against springing interest).
A contingent remainder could be destroyed at C/L – 1) normal
expiration (natural termination before the condition precedent was
satisfied) 2) merger of the supporting freeholds
Merger – estate preceding a contingent remainder (life estate) was
absorbed by a larger estate.
o Whenever successive vested estates are owned by the same
person, the smaller of the two estates is absorbed by the
larger – for doctrine to apply, the two vested estates must
not be separated by a 3rd vested estate.
Contingent Remainder that cannot be destroyed
If the contingent remainder vest at precisely the same moment that
the supporting prior freehold terminates.
Alienability of Remainders
Vested remainders have always been alienable inter vivos
Even if the vested remainder is subject to partial or total divestment
or defeasance, remainder is subject to same possibility of divestment
in the hands of the person who acquires it.
Contingent remainders are inalienable at common law – present
view, contingent remainder is alienable, devisable and descendible.
v. Statute of Uses and Executory Interest
Seisin – a person who has possession of land under a claim of
freehold.
Executory interest – future interest in a transferee that can
take effect only by divesting another interest or cutting short
prior interest.
i. Livery of seisin (feoffment)- required that the transferee
immediately take possession after the livery seisin.
ii. C/L restrictions – no “springing” or “shifting” interest
1. Springing interest – estate that would take effect in the
future by springing out of its present owner.
a. Ie. “to A and his heirs and after A’s marriage to D.”
2. Shifting interest – grantor could not give to a grantee an
estate which would cut another estate short. Bc livery of
seisin was to take effect immediately rather than in the
future.
a. FSD could be followed only by a possibility of
reverter in the grantor, and not by a shifting interest
in a third person.
b. There could be no interests in a third party after a
FSSCS.
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3. No gap between the end of an estate and the start of a
succeeding remainder.
4. Statute of Uses – Court of Chancery gave relief to the rigid
rules of C/L and fairness – facilitated executory interests
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Remedies for Waste
iii. If the future interest is sure to become possessory, the court will generally award
damages based on the diminution in value of the future interest stemming from the
waste.
iv. If the future interest is not certain to become possessory, an injunction may be the
only relief that the court may award – acts being enjoined are referred to as
equitable waste.
v. Sale by judicial order – where a tenant wishes to alter the property substantially,
court may in some states, order the property sold.
J. Restraints on Alienation
i. Grantor may not provide explicitly, that the grantee may not alienate the property.
ii. Restraints upon the alienation of a fee simple are void.
iii. Life estate may be subject to restraints.
iv. Certain types of use or disposition of property are upheld by the court.
a. Defeasible estates can be viewed as permissible restraints on alienation.
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K. Co-ownership and Marital Interests
a. There are 3 varieties of co-tenancy:
i. Joint tenancy (includes right of survivorship)
ii. Tenancy in common (does not have the right of survivorship)
iii. Tenancy by entirety (which exists only between husband and wife, and
which includes survivorship and indestructibility.
b. Types, Characteristics, Creation
i. Joint Tenancy.
1. Two or more people own single, unified, interest in real or
personal property.
2. Each joint tenant has the right of survivorship – the surviving
tenant has the entire interest in the property.
a. Deceased tenant does not have the ability to leave his
interest by will.
b. The interest is extinguished at the moment of the
decedent/joint tenant’s death so there is nothing to pass
by will of intestacy.
3. Each of the joint tenants owns the “entire” interest – each joint
tenant is entitled to occupy the entire premises.
4. At C/L a joint tenancy exists only where the four unities: interest,
title, time and possession.
a. Unity of interest – joint tenants have identical interest, as
to the share and duration of their interest.
b. Unity of title – joint tenants must acquire title by the
same deed or will.
c. Unity if time – each joint tenant interest must vest at the
same time.
d. Unity of possession – all the joint tenants have a right to
possess and enjoy the entire property.
5. Creation – at C/L presumption that any co-tenancy was a joint
tenancy, unless a clear intention to create a tenancy in common
was shown.
a. Today we presume that a co-tenancy is a tenancy in
common unless there is a clear intent to establish a joint
tenancy.
i. Ie “to A and B as joint tenants.”
6. Creditors – an unsecured or judgment lien creditor of one joint
tenant does not have rights against the interest of the other joint
tenant.
a. The surviving joint tenant usually takes the property free
and clear of the deceased tenant’s creditor – decedent’s
and creditor’s interest cease to exist at the moment the
debtor/joint tenant’s death. Harms v. Sprague.
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ii. Tenancy in Common
1. Tenancy in common, like the joint tenancy, is an estate shared by
two or more people in the same property at the same time.
2. Tenants in common have a separate “undivided” interest – no
right of survivorship.
3. Each tenant in common takes his share as an individual, where in
contrast to joint tenants who take a single unit.
4. Joint tenants have a right to make a testamentary transfer of his
interest – if he dies without a will, interest will pass under the
statues of descent.
5. Tenant in common may convey his undivided interest, or lease it
to a third party.
a. Most states now have either a stator or case law
presumption in favor of tenancies in common rather than
joint tenancies.
b. Tenant in common may convey his interest to a third
person without the consent of co-tenant.
6. Tenant in common may not make a conveyance that in any way
binds another tenant in common who does not participate in that
conveyance.
7. If one tenant in common purports to grant a mortgage on the
property, or allows a judgment to be entered against him that is a
lien on his property, the mortgage or lien will be effective only
against that tenant’s own undivided interest, not the interests of
the other co-tenant.
iii. Tenancy by the Entirety
1. At C/L, the husband and wife were regarded as one person.
2. Four unties required in the case of joint tenancy must be met for a
C/L tenancy by the entirety:
a. interest, title, time and possession, and the parties must
be married.
3. Surviving spouse has a right of survivorship.
4. There is no way to terminate the tenancy while husband and
wife are both still alive and still married.
5. Creation – at C/L, any conveyance to two persons who were
husband and wife necessarily resulted in a tenancy by the
entirety – rebuttable presumption.
a. Modern view universally treats husband and wife as two
individuals.
6. Severance:
a. 1) mutual agreement between husband and wife; and
b. 2) divorce.
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i. Severance will normally result in the creation of a tenancy in common.
ii. A conveyance by one joint tenant to a third party will cause a severance.
– create tenancy in common because 3rd party lacks unity of time or title.
iii. Motive of conveying join tenancies is irrelevant.
iv. A conveyance by one tenant in common to a stranger will produce a
tenancy in common as between the stranger and the remaining original
joint tenants, but the joint tenancy will continue as between the original
members.
1. Riddle v. Harmon (no need for a straw man)
a. Rule: A joint tenant may terminate a joint tenancy by
conveying his or her interest in the property, with or
without the knowledge of the other tenant(s), to another
party.
d. Granting of Mortgage
i. Jurisdictions are not in agreement as to whether the granting of a
mortgage by one joint tenant severs the joint tenancy.
1. Issue depends on whether the state treats a mortgage as
representing a transfer of title, or as merely being a lien to secure
repayment.
ii. Title theory – mortgagor, by granting the mortgage, is deemed to
transfer title to the property to the mortgagee. (not a severance but a
conveyance)
1. If the mortgage is defaulted upon, the mortgagee can foreclose
on the undivided one-half interest of the mortgagor.
iii. Lien theory – mortgage is deemed to be merely a security for
repayment, and not transfer of title – not a severance because right of
survivorship is not destroyed.
1. The mortgage is not enforceable if the mortgagor dies before the
other tenant.
a. Harms v. Sprague (lien on my half of the
property).
i. Rule: A lien placed on one joint tenant’s interest in
jointly held property does not destroy a joint
tenancy.
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e. Plaintiff Defendant Reasoning
Since B’s interest cease
P takes the whole property B’s execution of the to exist the moment he
by right of survivorship, and mortgage severed the died, so did the lien on
D2’s mortgage was joint tenancy. his interest – execution
extinguished on B’s death. of a mortgage does not
severe a joint tenancy.
Since the unity of title
has been preserved.
Lease
i. If one joint tenant executes a lease – most courts hold that such a lease is
not a severance, nor is it invalid.
1. Swartzbough v. Sampson (conveyance to third
party severs tenancy entirety).
a. Rule: A joint tenant may, without the consent of his
cotenant, convey or burden his share of the property only
to the extent of his interest in the property.
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a. Courts will approve a partition by sale if and only if the
physical characteristics of the property prevent division
of the property in kind, or if the division in kind would be
extremely unfair to one party.
ii. Any tenant in common or joint tenant may bring an equitable action for
partition.
1. Delfino v. Vealencis (garbage business v.
residential housing).
a. Rule: When dividing jointly held property, a partition in
kind is favored over a partition by sale.
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i. Rule: A cotenant in common, having an undivided
right to the entire property, does not owe rent to his
cotenant unless he agrees to, or unless he has
effected the ouster of his cotenant.
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L. Leaseholds: The Law of landlord Tenant
a. The Leasehold Estates
Key feature about a leasehold is that it is an estate in land, typically
created by a conveyance.
o Since a tenant was deemed to receive an estate in land, his rights
and duties were treated as independent of the landlord’s rights and
duties.
o A breach of the promise did not relieve the tenant from the duty of
paying rent – rent was owed as payment for the estate.
o Promise to do repairs could be enforced only by a separate
contractual suit brought by the tenant.
o The tenant, the term of his lease, is entitled to exclusive possession.
Modern
Move away from the doctrine of independent covenants.
Warrant of habitability – with respect to residential premises, the landlord
makes an implied warranty of habitability, the breach of which entitles
the tenant to terminate the lease and move out, withhold rent, or use
rent monies to make the repairs himself.
Tenant’s duty to pay rent is dependent upon the continued existence of
buildings on the property – thus, destruction of one’s building relieves
tenant of duty to pay rent.
The estates that are not freehold (instead leasehold) are: (includes a duty,
on the tenant’s part, to pay rent)
i. The Term of Years – any estate for a fixed period of time
1. Most common type of leasehold.
2. No notice needed to terminate.
ii. The Periodic Tenancy (PT) – continues from one period to the next
automatically
1. Continues indefinitely, until terminated by one of the parties by
proper notice.
2. Possible to be created by express agreement – normally created
by inference.
a. Ie. lease with no stated duration, invalid lease
3. In a holdover situation, a PT will result in leases a year or more.
4. PT will automatically be renewed for a further period unless one
party gives a valid notice of termination.
a. At C/L 6 months -notice was necessary to terminate year-
to-year
i. A full period’s notice was necessary where the period
was less than a year.
b. Today most states require only 30-day notice.
i. Where a notice is not sufficiently in advance of the end
of the current period, most courts now allow it to be
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automatically effective as of the end of the following
period.
iii. The Tenancy at Will
1. Has no stated duration and may be terminated at any time by
either party.
2. At C/L, no prior notice of termination is required, as it is for
periodic tendencies.
a. modern statutes give a tenant at will a right to prior
notice.
3. Parties could create a tenancy at will expressly, by agreeing that
either may terminate at any time – such a tenancy is created by
implication.
4. Tenant might take possession under a void lease; his possession
would create a tenancy at will, but this would be transformed
into a periodic tenancy as soon as he made the first payment.
5. Periodic tenancy at will terminate automatically:
a. Upon the death of either party; or
b. or upon a conveyance of the reversion by the landlord.
c. An assignment by a tenant of his interest also terminates
the tenancy.
d. Sublease does not terminate.
i. Garner v. Gerrish (only I get to
terminate the lease)
1. Rule: A lease which grants the lessee the right to
terminate the tenancy does not grant the same
right to the lessor unless expressly stated in the
document.
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3. Tenant will be held to same provisions of previous lease, unless
changes were decided before termination of prior lease.
Modern courts
1. If the tenant retains possession of any portion of the premises, he
will generally be considered to be holding over as to the entire
premises.
2. Courts recognize extenuating circumstances, particularly where
only a very short holdover period is involved.
3. Landlord may be found to have waived his right to treat the
tenant as a holdover.
4. Termination or renewal is binding on the landlord. If he starts
one proceeding, it is too late to go back and start another.
b. The Lease
i. SOF – contract provision requiring a writing for any contract not to be
performed within one year of the making of the contract.
1. Lease is not necessarily void because it is required to be in writing
and it is not.
ii. Leases beyond a certain length must be recorded in the public records.
1. A failure to record where recordation is required is that the lease
is not binding upon a subsequent purchaser from the landlord.
c. Selection of Tenants
d. Duties, Rights and Remedies
i. Quiet Enjoyment and Constructive Eviction
1. Tenant has a “right to quiet enjoyment” of the leased premises.
Right can be interfered with when:
a. 3rd party asserts a title superior to the landlord
i. only if the 3rd party asserts his paramount title in such a
way that the tenant is evicted, may the tenant
terminate the lease and recover damages.
b. Acts of the landlord
i. If the landlord merely interferes with the tenant’s use
or enjoyment of the property, there is a constructive
eviction.
ii. No general duty imposed on the landlord to control the
conduct of other residential tenants.
1. Except when others tenants use their portion of
the premises for immoral or lewd purposes or
objectionable conduct takes place in the common
areas under the landlord’s control.
c. Condemnation
i. Government may decide to take all or part of the
leased premises by its right of eminent domain, or
condemnation.
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ii. If the entire premises are taken, the lease terminates,
and the tenant does not have to pay any further rent.
iii. Where only a portion of the premises is taken (even a
majority portion) the C/L rule is that the lease is not
terminated – tenant is required to continue paying the
full rent.
iv. The government must pay the fair value of any property
which it condemns.
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not terminate the lease or withhold rent if the landlord
breached.
44
3. Building code violations is at least some evidence of
inhabitability.
a. Hilder v. St. Peter
i. Rule: All residential rentals include an implied
warranty of habitability, which cannot be waived or
disclaimed.
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a. C/L view – tenant required to keep paying rent. Rationale
was that the tenant has purchased an estate in land, and
assuming that the land itself was not destroyed, he has
gotten what he bargained for.
b. Statutes typically provide that if the premises are
destroyed or so damaged that they are no longer
habitable, the tenant may terminate the lease and stop
paying rent.
e. Tenants Duty
i. Tenant normally has a duty to pay rent.
1. The tenant may not raise the defense of an implied warranty of
habitability to justify his non-payment of rent.
ii. If the tenant abandons the premises before the scheduled end of the
lease term, the landlord has 3 choices:
1. Accept a surrender
a. L loses the right to collect from T rent accruing after the
surrender.
2. Re-let on the tenant’s behalf; or
a. The landlord has the right to inform the tenant that he is
attempting to re-let on the tenant’s behalf.
b. Since there is no termination of the original lease, and the
tenant will remain liable for:
i. All rents coming due if no new tenant is found.
ii. The difference between the rent paid by the new tenant
and the rent reserved in the original lease.
3. Leave the premises vacant and sue for rent as it comes due.
a. L has no duty to try to find a new tenant.
b. Minority of courts hold the landlord has a duty to
mitigate, by attempting to find a suitable replacement
tenant. (lease today is seen as an exchange of promises
rather than a conveyance).
f. Transfer and Sale by Lessor; Assignment and Subletting by
Lessee
i. Unless the parties to a lease agree otherwise, either may transfer his
interest.
ii. The original parties to a lease are both in privity of estate and privity
of contract.
1. If one of them assigns his interest, privity of estate between
them is ended, but not the privity of contract.
2. A party to the original lease will not normally be able to escape
liability by assigning his interest.
iii. A landlord may sell his reversion in the property, and the tenant may
either assign or sublease his right to occupy.
46
iv. SOF - if the duration of the assignment or sublease is such that an
original lease of the same duration would have to be in writing, the
transfer must be in writing.
g. Assignment - assignment is the transfer by the lessee of his entire interest in
the leased premises.
i. Principal significance of an assignment establishes a new landlord-
tenant-relationship between the assignee and the original party who
did not assign – privity of estate.
ii. Privity of estate – since an assignee is in privity of estate with the non-
assigning original party, the assignee obtains the benefit, and bears the
burden, of any covenants running with the land.
iii. Any promises made in the lease which “touches and concerns” the land
runs with the land, and affects any assignee.
iv. Assuming that the lessee’s assignee does not make any specific
promise of performance when he takes the assignment, his liability to
the lessor is based upon privity of estate – being in possession of the
premises, he is liable for performance of promises made by the lessee
whose burden runs with the land.
1. Since the assignee’s liability is founded upon privity of estate, the
liability applies only for the period when the assignee is actually
in possession.
v. If there is an assumption of duties by the assignee, the assignee is now
bound by privity of contract as well as by privity of estate.
1. Privity of contract between the tenant and assignee means:
a. Tenant may sue the assignee if the covenants are not
performed – even if the relationship rested solely upon
privity of estate.
b. If the assignee has made an explicit promise, his privity of
contract liability to the tenant remains even after a
further assignment.
c. In most states, the landlord is a 3rd party beneficiary of
the assumption agreement between tenant and assignee.
i. The landlord and the assignee are now in privity of
contract – the assignee will be liable for duties incurred
during his actual possession, but also for duties incurred
after a further assignment.
ii. Landlord’s assignee has the burden of covenants whose
burden runs with the land, and has the benefit of
covenants whose benefit runs with the land.
h. Rights of parties after Assignment.
i. Original tenant, when he makes a promise in the lease that relates to
the leased premises, is bound to keep the promise both by privity of
estate and by privity of contract.
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ii. Only way T can escape from his privity of contract with L is if, in
conjunction with the assignment, he gets a release from L of his privity
of contract liability.
iii. When the landlord has made a promise whose burden runs with the
land, the tenant will lose the right to sue on this promise if he assigns
to someone else, and the breach occurs after the assignment.
i. Sublease - a sublease creates a new landlord-tenant relationship between
lessee and sublessee – no privity of estate between the lessor and the sublessee.
i. If the lessee does not pay the rent, or otherwise permit a breach of the
lease, the lessor may terminate the lease, and evict the sublessee.
ii. The lessee continues to be liable to the lessor following a sublease,
both under privity of contract and privity of estate.
iii. A sublease by a tenant does not establish privity of estate between
sublessee and lessor.
iv. Sublessee is not liable to the lessor on covenants running with the
land; instead, the lessee and the sublessees become in privity of estate
– liable to the lessee on covenants running with the land.
j. Covenants Running with the Land
i. Elements:
i. Any promise has two sides:
1. A burden (someone must perform the promise) and a benefit
(someone will gain from the performance by the other)
2. Burden of a promise made in a lease will run with the land
(enforceable against an assignee of the promisor) if that promise
“touches and concerns” the promisor’s assignee’s interest in the
land.
3. Benefit of a promise will run with the land (enforceable by an
assignee of the promise) if it “touches and concerns” the
promisee’s assignee’s interest in the property.
a. A promise to pay money/pay taxes, make repairs relates
directly to the land, runs with the land both as to benefit
and burden.
k. Fair Housing Act
i. Fair Housing Act, Title VIII of the Civil Rights Act of 1968 prohibits
housing-related discrimination only if based on race, color, national
origin, or religion, sex, handicap and familial status.
ii. FHA applies to various types of activities – sales, rentals, advertising,
brokering, and financing, if done in connection with residential real
estate.
iii. One must not make, print or publish, any notice, statement, or
advertisement that indicates any preference, limitation, or
discrimination or an intention to make any such preference, limitation
or discrimination.
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iv. The main way in which a realtor is likely to violate the FHA is by
engaging in the practice of racial steering.
1. The broker shows minority customers mainly housing in heavily-
minority areas.
2. The broker doesn’t tell minority customers about the availability
of housing in non-minority areas.
v. Redlining: declining to provide loans in minority neighborhoods.
vi. The most important type of local governmental action that may violate
the FHA is the enactment of “exclusionary zoning.”
vii. FHA does not seem to prohibit a landlord from discriminating on the
basis of sexual orientation
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M. Judicial Land Sue Controls: The Law of Nuisance
I. An Introduction to the Substantive Law
a. Public nuisance is an interference with a right common to the general public.
b. Private nuisance is an interference with a property owner’s right to use and
enjoy his property.
II. Elements for proving nuisance:
a. Is the conduct a nuisance?
b. Inteference must be substantial.
c. Plaintiff must show that the defendant’s conduct was negligent, intentional (he
knows with substantial certainty that such interference will occur), or
abnormally dangerous.
d. Conduct was unreasonable
i. Even if the defendant intentionally interferes with the plaintiff’s rights,
he will have a kind of “privilege” to do so, unless the interference is not
unreasonable.
1. Jost /Threshold test – courts just examine conduct – social and
economic value is irrelevant (See Boomer)
i. Nature of the neighborhood, zoning of the area.
2. Restatement – whether the gravity of the harm outweighs the
utility of the actor’s conduct.
3. Alternative 1 test: intentional invasion is unreasonable for
purposes of nuisance law if: (1) the gravity of the harm caused
outweighs the utility of the actor’s conduct; or if, (2) the harm
caused by the conduct is serious and the financial burden of
compensating is possible while still keeping the business going.
4. Alternative 2 test: an intentional invasion of another’s interest in
the use and enjoyment of land is unreasonable if the harm
resulting from the invasion is severe and greater than the other
should be required to bear without compensation.”
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Plaintiff Defendant Reasoning
High Penn intentionally
An action for private The evidence is not and unreasonably
nuisance may be sufficient to establish invaded Morgan’s
maintained even though either an actionable or property with toxic
the party producing the abatable private fumes, thus preventing
nuisance was not negligent. nuisance – operated a Morgan from using and
legal business and the enjoying the land. Thus,
emission of the gases Morgan had a cause of
was not negligent, but action for private
rather inevitable so not a nuisance, even absent a
nuisance per se. showing of negligence.
High Penn is likely to
continue its activities,
and an injunction is
warranted to ensure the
nuisance is abated.
e. Defenses Defendant May Raise
i. Assumption of the risk (“coming to the nuisance”) – plaintiff has
purchased his property with advance knowledge that the nuisance
exists.
1. Courts are more likely to hold that “coming to the nuisance” is a
defense if defendant’s activity is suitable for the area where it
occurs, and the plaintiff’s own use is out of step with that area.
f. Remedies
i. 3 possible remedies for private nuisance:
1. if the harm has already occurred, he can recover compensatory
damages.
a. If it appears that the nuisance will be a permanent one
he can and must recover damages, past and prospective,
in one action.
2. If the plaintiff can show that damages would not be a sufficient
remedy, he may be entitled to an injunction against continuation
of the nuisance.
a. Balancing Test – the plaintiff must show that the harm to
him actually outweighs the utility of the defendant’s
conduct.
i. Estancias Dallas Corp. v. Schultz
1. Rule: A trial court must engage in
balancing the equities when determining
whether an injunction is appropriate to
abate a nuisance.
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Plaintiff Defendant Reasoning
if the injury to the
suffered substantial injury defendant and the public
in the loss of enjoyment of would be slight when
their home, and that injury compared to the injury
is likely to continue if the to the plaintiff, the
injunction is not entered. injunction should be
granted.
ii. Boomer v. Atlantic Cement Co.
(Restatement Test – profitable
business to pay permanent
damages)
1. Rule: Permanent damages, rather than an
injunction, are appropriate when the
damages resulting from a nuisance are
significantly less than the economic benefit
derived from the party causing the harm.
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however, said party is entitled to
compensation.
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due regard for the equal and correlative rights of other
riparian owners.
e. In determining “reasonable use” courts distinguish
between natural and artificial uses.
i. Absolute right to all or any part of the water for
“natural’ uses, without regard to the effect his use
has on other owners downstream. (preferred
status)
2. Statutory “prior appropriation”
a. Water may be appropriated by a non-riparian owner.
iv. Groundwater – water below the surface
1. American – reasonable use of groundwater drawn from under
his property – may not divert the water to other property which
he may own.
2. English – landowner is given an absolute interest in all the water
which he can draw to the surface of his own land. – even if water
comes from below the surface of another owner’s property.
i. Air Rights.
i. “He who owns the soil owns upward into Heaven.”
ii. If sovereign immunity prevents a trespass action, the landowner may
nonetheless claim that the direct overflights constitute a taking of his
property – which cannot be done without just compensation.
iii. A landowner may have property interest in the sunlight which would
naturally strike their property especially where a landowner uses
sunlight as a source of energy.
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N. Private Land Use Controls: The Law of Servitudes.
a. Introduction: Classifying Servitudes
i. Various rights which one may have in the land of another.
1. Easement – privilege to use the land of another.
a. Affirmative easement – permitted to make physical use of
another’s property.
b. Negative easement – enables its holder to prevent the owner of
land from making certain uses of that land.
c. Easement appurtenant – one which benefits its holders in the
use of a certain piece of land.
i. Its benefit must be intimately tied to a particular piece of
the land.
ii. Benefit which can only accrue to one who is in possession
of a particular parcel
iii. Dominant tenant – the land whose benefit the
appurtenant easement is created.
1. Holder of the easement has an implied right to
maintain the property used in the easement.
iv. Servient tenant – land that is burdened, or used by the
easement.
1. Owner of the servient estate is not required to
repair or maintain the property used in the
easement.
d. Easement in gross – benefit is not tied to any particular parcel
of land.
2. Licenses – privilege to use the land of another, not in writing.
3. Promises concerning he land; covenants (enforced at law) and
equitable servitudes (enforceable in equity)
b. Creation of Easements
i. 5 ways to create an easement:
1. Express – most straight forward way of creating an easement is by
deed or will.
a. Must meet the SOF – must be in writing, signed by owner of
servient estate
i. In most states, a lease less than one year does not have to
be in writing.
ii. If the easement is one which must satisfy the SOF, and the
parties fail to do so, a license will generally be created.
b. Easement by reservation – owner of land may convey that land
to someone else, and reserve for himself an easement in it.
i. SOF normally requires a writing signed by the party to be
charged; by accepting the deed, and recording it, binds
himself as to the reservation even without a signature.
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c. Stranger to the deed - at C/L, it was not possible for an owner
of land to convey that land to one person, and to establish by
the same deed an easement in a third person.
i. Modern courts have abandoned this rule, permits an
easement to be created by a deed in a person who is
neither the grantor nor grantee.
d. Scope: Where the easement is created by an express written
conveyance, the terms of that conveyance will normally control
– if the conveyance is ambiguous, the court will look at the
circumstances surrounding its making to determine the parties’
intent.
2. Implication
a. Exception to SOF.
b. Elements for an easement by implication:
i. Land is being severed from the common owner.
1. Owner sells part and retains part; or
2. Sells pieces simultaneously to more than one
grantee.
ii. Use for which the implied easement is claimed existed
prior to the severance – apparent and continuous prior to
that severance.
1. An express provision in the deed to the effect that
no easement exists will prevent creation of an
implied easement.
iii. Must have been a quasi-easement, in favor of one portion
of the property and against the other portion, while both
were under common ownership.
1. The use must be one which the grantee either in
fact knew about when he received his interest, or
could have learned about with reasonable
inspection (apparent).
iv. Easement is at least reasonably necessary to the
enjoyment of what is claimed to be the dominant
tenement.
1. where the implied easement is created by grant,
courts require only “reasonable” necessity.
2. Where the easement is reserved, most courts
require that to be strictly or absolutely necessary.
a. Ie. running a sewer line another’s property,
easement to receive sunlight for solar energy
c. Scope: The court will look to the use as it existed prior to the
conveyance.
d. Easement in gross cannot be created by implication.
Relevant Cases
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Van Sandt v. Royster (sewage coming through)
a. Rule: An easement will be implied in favor of a grantor for
sewer pipes running under the grantee’s land, because the
grantee is charged with notice, as the existence of such pipes is
apparent even if it is not visible.
b. quasi-easement - landowner uses one part of her property to
benefit another.
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Plaintiff Defendant Reasoning
Granted a license to use In order to prove an
no other means of reaching the land, revocable at easement by necessity,
Othen’s land for the past any time. the purported easement
forty years – easement by holder must show that,
necessity. at the time of the
conveyance, the
easement is necessary
for ingress and egress to
and from the dominant
property. If the owner
has knowledge and
grants consent (actual or
implied) to use the land,
no easement by
prescription can be
create.
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2. use does not need to be exclusive – only the
attitude of the non-subordination, not the physical
use, must be continuous.
3. If, at some point during the prescriptive easement
period, the dominant tenement comes to be owned
by the same person who owns the servient
tenement, even if a tenant on the dominant
property uses the easement, this use will not be
hostile, and hostility will be interrupted.
g. Scope: the allowable use is determined by reference to the
adverse use that continued during the statutory period and
created the easement.
5. Estoppel
h. Elements of an easement by estoppel claim:
i. Should reasonably have foreseen that A would
substantially change his position in reliance on the belief
that O would not revoke his permission.
ii. A has INDEED substantially changed his position.
iii. Treating the permission as permanent is the only way to
prevent injustice.
i. Exception to SOF.
Relevant Cases
Holbrook v. Taylor (easement is revoked after P’s build a house)
j. Rule: Where the owner of land has granted a license to another
to use and make improvements upon the land, and the licensee,
relying on this permission, does use and make improvements to
the land at considerable cost, that license is irrevocable.
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c. Transfer and Subdivision of Easements
i. When the title to the servient estate is transferred, the burden of the
easement remains with the property.
ii. An easement appurtenant will normally pass with the transfer of the
dominant estate, even if the deed of transfer does not mention the
easement.
d. Termination of Easements
i. Ways in which an easement may terminate:
1. Natural expiration – if the term of the easement is not specified, the
easement will be found for an unlimited duration.
2. Purpose no longer applies – easement might be for a certain purpose,
and will terminate when that purpose is no longer relevant.
3. Merger – if ownership of a servient estate and of the appurtenant
dominant estate come into the hands of one person, the easement
appurtenant is destroyed.
4. Destruction of the servient estate
5. Prescription – servient owner or a third person may use the servient
property in a way inconsistent with the easement, for the statute of
limitations period.
6. Release – execute a release in writing, surrendering the easement.
7. Estoppel
8. Abandonment – only permitted in certain circumstances; words alone
will never be sufficient.
a. For the easement to be abandoned, an intent on the part of the
easement holder to abandon it, coupled with actions
manifesting the intent.
b. Mere non-use of the easement, even for a long period, is
typically not enough to show the requisite intent to abandon
9. Revocation – easement is not revocable at its grantor’s will. Both
parties must agree.
e. Licenses
i. A right to use the licensor’s land that is revocable at the will of the licensor.
ii. A license is not required to satisfy the SOF and may be created orally.
1. Any oral grant of the right to use the grantor’s property must, if it is
valid at all, be a license and this ordinarily be revocable.
a. Ie. right to use a parking lot
iii. Lease v. license
1. A license merely confers the non-exclusive right to use the premises in
a particular way. A lease gives the lessee exclusive possession of
specified premises for a stated time.
iv. Some situations where the courts restrict or eliminate the revocability of a
license.
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1. Use would have been an easement but did not meet the SOF, and
licensee makes substantial expenditures on the land in reliance on
the licensor’s promise that the license will be permanent or of long
duration (license by estoppel).
f. Negative Easements
i. Conservation/solar easements
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O. Covenants Running with the Land
a. A covenant running with the land is a contract between two parties which,
because it meets certain technical requirements, has the additional quality that
it is binding against one who later buys the promisor’s land, and/or enforceable
by one who later buys the promisee’s land.
b. The Traditional Approach
ii. Covenants Enforceable at Law: Real Covenants
1. A promise that is subject to legal rather than equitable relief – when
the covenant is breached, the relief granted is money damages.
iii. Elements of restrictive covenants running with the land:
1. SOF; must be in writing.
2. Intent to run
3. Privity
a. For the burden to run:
i. Must touch and concern the land.
ii. Horizontal privity (Some land transfer between original
promisor and promisee) – if no horizontal privity, sue
under equitable servitude
iii. Vertical privity (between original covenant party and party
burdened now)
iv. Party against whom it is to be enforced must give away
entire estate of the original promisor, in the durational
sense.
b. For the benefit to run:
i. Must touch and concern the land.
ii. Vertical privity – relationship between the promisor and
his successor in interest (A->C) or the relation between the
promisee and his successor.
iii. Benefit may be enforced by anyone who has taken
possession of the promisee’s property with the
promissee’s permission.
4. Touch and concern the land.
c. Covenants Enforceable in Equity: Equitable Servitudes
i. An agreement that creates an equitable property interest in the burdened
land – promisee may enforce the agreement without showing that
appreciable damage or injury to his property will occur from a breach.
ii. Elements of equitable servitude claim:
1. Must satisfy SOF
a. If not satisfied, one can prove common scheme, common owner
and intent to apply.
2. Privity is not generally required.
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a. Servitude may be binding on successors who were strangers to
each other’s title, as long as they have notice.
3. The burden can run even though the benefit does not touch and
concern the land.
a. Touch and concern requirement will nearly always be met on
the burden side.
4. For the benefit to run, the original parties must be fairly specific
about who may enforce the promise.
a. Ie. general development plan, express provision in the deed,
existence of a general building plan,
b. Implied reciprocal servitude - early purchaser acquires his land
in expectation that he will be entitled to the benefit of
subsequently created servitude.
i. Exception to the SOF
ii. Prior purchaser must show that a general building plan
existed at the time he brought.
5. A subsequent purchaser from the promisor will be bound only if he
had notice prior to taking.
a. Actual notice – was told of the covenant
b. Constructive notice – recordation of history of deed in public
office.
c. Inquiry notice – could have asked around
iv. A suit at law on a covenant running with the land can only culminate in
money damages.
1. Where the promise is a negative one, involving a restriction on
building, money damages are not usually the desired relief – an
injunction against the forbidden construction is the relief generally
desired.
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1. SOF requires that modification or termination be in writing, just as
the original servitude had to be in writing.
iii. Abandonment – requires unequivocal evidence of an intent to abandon by
the benefitted party.
iv. May be modified or terminated by court order when conditions have so
changed that it is impossible to accomplish the purposes for which the
servitude was created.
e. Common Interest Communities
i. Homeowners’ associations and condominium associations enact rules,
regulations, and restrictions governing items such as pets, satellite
dishes, the parking of vehicles, etc.
ii. Generally, courts enforce such restrictions; however, courts impose a
requirement of reasonableness.
1. Restrictions will be valid unless “irrational” or “wholly arbitrary.”
a. Nahrstedt v. Lakeside Village Condominium
Association, Inc. (1994): “we conclude, as a matter of
law, that the recorded pet restriction of the Lakeside
Village condominium development prohibiting cats or dogs
but allowing some other pets is not arbitrary, but is
rationally related to health sanitation, and noise concerns
legitimately held by residents.
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P. Zoning
Principal type of public land-use regulation existing in American – generally done on
the local, municipal level, with the power to do so coming from the state police power.
Regardless of the grounds upon which a zoning regulation is attacked, the attacker has
the burden of proof.
Permissible objectives of zoning include protection of the “public health, safety morals,
and general welfare.”
o “use” zoning is the most important kind of zoning – municipality is divided into
districts, in each of which only certain uses of land are permitted.
Euclid v. Ambler Reality Co. (cumulative ordinance)
Rule: Municipal zoning regulations are constitutional, unless they
are clearly arbitrary and unreasonable, having no substantial
relation to the public health, safety, morals, or general welfare.
Policy Argument - Pre 1930s, courts refused to allow aesthetic
zoning because 1) it is unfair to allow the majority to impose its
tastes upon everyone; 2) it is impossible to formulate standards
that are sufficiently precise to avoid discrimination and corruption
in enforcement.
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Plaintiff Defendant Reasoning
Statutory provision Aesthetic considerations
Stoyanoff claimed that the authorizing zoning are a matter of general
regulations were regulations aimed at welfare. Although
unconstitutionally vague protecting the character Stoyanoff’s house was
and gave no guidance to of the neighborhood and not patently offensive, it
the board - use restrictions preserving property was different enough to
caused an effective taking values. raise a concern
of property without due regarding neighborhood
process of law. character and property
i. values.
Zoning Administration
a. The relevant date of determining the existence of a non-conforming use is the
effective date of the ordinance – by this date the use must be a reasonably
substantial one – mere preparation for the use is generally not enough.
ii. Many municipalities have responded to this problem by amortization
provisions – the non-conforming use may continue only for a certain
length of time following enactment of the zoning restriction (owner will
have time to amortize/recover his investment, and to make plans to
continue the use somewhere else if he wishes).
iii. Minority of states hold that amortization amounts to an improper
taking of private property – federal Constitution prohibits the
amortization technique, because it amounts to a taking without due
process of the law.
1. P.A. Northwestern Distributors, Inc. v. Zoning Hearing
Board (you have 90 days to take the porn and go).
a. Rule: An amortization clause in a zoning ordinance which
affects lawful land use constitutes a “taking” under the
Pennsylvania Constitution.
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Q. Eminent Domain
o Condemnation proceedings – the government decides that a certain parcel is
necessary for public use and brings a judicial proceeding to obtain title to the
land; court decides upon the just compensation due to the owner.
o Supreme Court has construed the requirement of “public use” quite broadly,
giving great deference to legislative judgments in this field.
Adequate legitimate state interests include – maintaining residential
zoning, preserving landmarks, and protecting the environment.
So long as the state’s use of its eminent domain power is “rationally
related to a conceivable public purpose,” the public use requirement is
satisfied.
The fact that property is turned over to some private user does not
prevent the use from being a public one as long as the public can be
expected to derive some benefit.
Kelo v. New London (big company to create jobs in
town).
o Rule: A state’s use of eminent domain to condemn
property from private individuals and redistribute it to
other private individuals constitutes a “public use” under
the Fifth Amendment if it is rationally related to a
conceivable public purpose.
o Dissent: all private property is now vulnerable to being
taken and transferred to another private owner, so long
as it might be upgraded (given to an owner who will use it
in a way that the legislature deems more beneficial to the
public.
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Hadacheck v. Sebastian (clay business gone due to
ordinance).
o Rule: The state police power includes the power to
regulate land use, and must not be arbitrarily exercised.
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2. If the state merely regulates property use in a manner consistent
with the state’s police power, then no compensation needs to be
paid, even though the owner’s use of his property, or even its
value, has been substantially diminished.
Relevant Cases
a. Loretto v. Teleprompter (you must provide the tenants
cable)
i. Rule: A permanent physical occupation authorized by government is a
taking requiring the payment of just compensation without regard to the
public interests that it may serve or the fact that it only has a minimal
economic impact on the property owner.
ii. Policy Argument - A permanent physical occupation requires payment of
just compensation because it destroys the property owner’s opportunity
to exercise three basic property rights:
1. (1) the owner may no longer fully possess the property or
exclude others from possessing it;
2. (2) the owner can no longer exclude others from using his or her
property, and cannot make any personal non-possessory uses of
it; and
3. (3) the owner cannot properly dispose of the property because a
permanent physical occupation typically strips the property of
most or all of its economic value.
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ii. Plaintiff Defendant Reasoning
The state is acting to The statute does not
Regulation so utterly prevent harm to the seek to correct a public
impaired the right to mine public. nuisance, because only
coal that it was nearly the one home is involved,
equivalent of an and it does not intend to
appropriation or protect personal safety,
destruction of the coal. since Mahon knew the
risks involved in
purchasing the land –
it’s a taking.
Historical and Environmental Preservation
a. A historic district is a group of buildings or a neighborhood exhibiting a
common style or historical or architectural interests, and when taken as a
whole, the area is worth maintaining because it reflects the life style or
architecture of a given period.
b. Historic district ordinances have been subjected to two main legal attacks:
a. They are arbitrary and discriminatory because they lack sufficiently
precise standards to guide the board in issuing construction permits
b. Constitute a “taking” without compensation, prevents the owner from
making a profitable use of his property
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Plaintiff Defendant Reasoning
Landmarks law did not Landmarks law was a
Landmark Reservation interfere in any way with part of a
imposes upon land owners’ the present uses of the “comprehensive plan” P
significant costs and Terminal – no evidence has the ability to
restrictions, without that all development of transfer their
affording them many the air space would be development rights
benefits beyond the honor prohibited. above the terminal to
of the designation. The cost other parcels of land in
of preserving historical the vicinity.
landmarks should be borne
by the entirety of New York
City taxpayers, and not by
the four hundred
designated businesses
alone.
ii. Lucas v. South Carolina Coastal Council (
1. Rule: A state regulation that completely deprives private
property of all its economic value constitutes a taking under the
Fifth and Fourteenth Amendments that requires the payment of
just compensation to the property owner, unless the economic
activity prevented by the regulation is not part of the owner’s
initial title or property rights when acquiring the property.
2. Particular use eliminated of the property (not enough to
constitute a taking) v. total and permanent ban on the building of
structure on the property (more likely to be a taking).
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