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Showing posts with label privity. Show all posts
Showing posts with label privity. Show all posts

Friday, April 9, 2010

property law: april 9 2010 class notes.

recap.


easements
1. where the parties intended such a right to exist, from the relevant circumstances (van sandt v. royster: right to continue use of something that had been done before the two parcels were separated, a "quasi-easement") in this case we ask if we can infer that the owners of the separated parcels wanted the use to continue? what do we look to to answer this?
  a. what was happneing when this parcel was split in two? was there already a use, such that there could be a continuation of the use (cause if it hasn't happened yet, it can't be continued)
  b. was the burdened party aware? if they weren't, we can hardly say that they intended to have the easement.
  c. is the use permanent or intermittent? we don't consider non-permanent use to be an easement.
  d. was this use necessary to the enjoyment of the dominant tenant? if it's not really necessary, maybe it's not so clear that the party taking title to the dominant would have relied on the subserviant tenant in the way it was being used when the two parcels were split.

other factors from the restatement may comein to play, but basically come to whether or not the two parties intended uses on the two parcels of land to continue.

for example, we construe against an easement more for the grantorr than grantee, has to do that we expect people to write stuff out (put it in the deed, and if you don't we may be more skeptical of what you say)
we may require the degree of necessity etc, to make up for this (see the restatement on real property!!!)

othen v. rosier
claiming the right to use a right of way through the rosier's property.
the parcels were once owned by a common grantor (mr. Hill)
the right of way is a necessity and not a convenience
that necessity to traverse the allegedly subservient estate existed at the time that the two estates were subdivided from the original common parcel

othen wasn't able to prove a common division from the estate: to prove that the owner of the 100 acre provision had to traverse, we would need to know about the surrounding land. we don't know what other options were availalbe, and so we can't say taht the right of way was a necessity. additionally, the 16 acres in front were
you can't create an easement in land you own, so the 16 acres in front do not have an easement for him that way.

however, there may be an easement by prescription, which is similar to adverse possession.
via use through the statutory period, adverse possession may satisfy the requirements for an easement interest.
the use is continuous.
it is an open and notorious use of the land.
is the use exclusive? no...

but if it's exclusive, you don't have an easement you would have adverse possession: we would be saying that you are now the possessor of the property interest in question.

should there be any difference between exclusive use and exclusive possession?
there's a possiblity to call it open and notorious but still not permissive. however, the court didn't see it this way here, the court still viewed it as not hostile.

the court doesn't want to allow othen to combine the periods of use because it's not proven that the road is the exact same that was created and used prior to the upkeep maintenance .

what should be done?
1. maybe the answer is the market -- you could bargain for a position to use the right of way, or bargain with a neighbor to create a

on it's face this seems inconsistent with the open and notorious requirement, to say that the use hasn't been exclusive even if concurrent with the owner of the subserviant estate.

think of suburban common driveways -- the courts are not always aligned on how those cases will come out.

covenant enforceable at law.

covenants are like contracts, if they have consideration.
but in real covenants, we're speaking about promises that are sought to be enforced by a damages award.

land lasts a lot longer than people's promises do. the land may have passed to a successor, and the promisee may pass the land to a successor... so then are the promises still enforceable for action for damages when there is no contract between successor parties?

as to a contract, we can't say that one has consented to the other or that one has relied on the other, as we do with contracts. there must be some other reason as to the binding and enforcement. we do this through...

privity!

privity of contract: A and B have a contract of how to use the land, that's enforceable.
                              but that's nto necessarily true to someone you sell/pass the land to.
                               though we woud want for it to be....

so in order to get at this problem, the common law created a series of complex rules:

1. in order to determine if the successor is liable, we ask if the burden of the covenant runs with the land. the burden of the covenant will be enfo at law only if there is horizontal privity to estate (made in an insturment that made an interest in the property, not just a contract but a deed or covenyance of real prop that included this covenant to be enforced. this is a differnt privity than we're used to seeing in adverse possession with tacking or landlord/tenant law with assignment... totally different! horizontal relationship is how the interest came to be: if the interest came to be throught he intsrument conveying interest in the estate in land. but if there's not, there's no legal interest in the estate in land passing betwen the parties so no privity that will suffice. horizontal privity of estate is important to determining whether the burden of the covenant will run at law. if there's no burden, then there's no successsor who will be boudn by the promisor! that's not true with respect to the benefit --
2. in order to determine if a successor to the beneficiary, we ask if the benefit runs with the land.
in determining the benefit parcel, we don't care about privity of estate.

problem.
A and B are neighbors who plan to restrict to sengle family use. sing a promise: A to assign to her heirs for isngle family purpose only. recorded nder the name of each signer.

we have a promisor and promisee. does their agreement (consisting of promises of how to use the land) made in an instrument making an estate in land? NO
are A and B making a life estate? NO, this is just a contract.

B sells to C who builds an apt building. A sues. what result?
if C is to be bound by the promise of the predecessor, does the burden run from B to C? this is the party against who enforcement is sought. so does the BURDEN run at law to this party (B/C)?
1. was there horizontal privity of estate between A and B? if not the burden cannot run. this interest was not an estate in land. so there's no horizontal privity/ no burden running with land at law.

A and B make their promises in instrument not conveying interest in real property. B sells to C. A acts in violation. C sues to enforce promises against A. what result?
C did not create the promise, A did. C is seeking to enforce, does the benefit run from B to C? yes.
this is the party seeking enforcement. so does the BENEFIT run at law to this party (B/C)? yes.
1. we dont' need horizontal privity for the benefit to run... why??? because A made the promise, and so there's not as much trouble enforceing the promises of the person who made them. whereas it's difficult to enforce promises of people who didn't make the promises, but upon whom promises were conveyed.

vertical privity of estate: this is more like successor privity relationships, like howard v. kunto (tacking with respect to the same piece of land). we are asking whether the successor to the burden parcel has succeeded to the same estate owned by the original promisor. if so, the burden will run to those successors... what does that mean. if the sucessor aginst whom sought has gotten a portion, like LE or DF, doesn't run to the same estate. for the benefittor, the rules are more relaxed as well -- we are only asking if the successor has succeeded to any part of the original parcel, in which case the owner of that parcel has standing to enforce the covenant. hwoever, adverse possession still doesn't give you standing on either side because it's considered a new source of title to which covenants woudn't have been made.

somewhat rare, not typical that these will be sought in covenants enforceable by law. instead, injunctive relief will be more expected. still, we gotta know this...


tulk v. moxhay
moxhay wants to build and tulk sues for an injunction on the ability to build on the garden in lester square. 

rules to vertical privity estate (england only has this between landlord and tenant, not even as broadly as we do). in law of england, can't say that the privity extended from elms to moxley.

what is the court to do? court says moxhay, you knew that you would get this land for less because it was encumbered upon. to now turn around and say that the promises dn't encumber the land, is unfair. but this is only true if everyone's expectations were that the promise was enforceable against him -- but if the expectation wasn't a function of the promise, and didn't create an encumberance then this is

3d party beneficiaries: the interests of others who have relied on the square being open must be looked at. why? because tulk owns the land around the area, but doesn't want to own the garden to maintain it.

why would anybody buy the garden instead? it holds value, because the property has a provision for the collection of rent from the surrounding inhabitants for the use of the garden.... tulk is basically conceding the ownership of the land.

fairness: it's unfair to allow moxhay to get the land at a discount with an encumberance, but then not to reap the full value of hte land. the grantor of this land extracted a promise, and is enjoying their property on the reliance of that promise. allowing the purchaser to use the land as he'd like irregardless of the promise, then that's against the covenant. and that's not fair to anybody...

so this case is not really about fairness or about the doctrine.

the uses of one piece of land can have an effect on the value and usage of neighboring pieces of land... but so what?

there's a right to build and to move forward. the person who wants to not have a build (tulk) and then a person who wants to build on the land (moxhay). and the promise to keep the property to not be built on has value -- but if the subsequent persons don't have a value in that promise then what does it matter?

what would be the effect of saying it's not unfair to let the promisor to go back on the promise? would anybody ever accept such a promise as conveyance of real property? -- yes

covenants are different than other dispositions to the use of property after the original possessor is gone! allowing people to control the uses to the land that they convey/sell/etc. may build on people's comfort to convey.

eventually, tulk or his successors sold the injunction right to the party who wanted to build, which menat that nothing stood in the way of leichester square becoming a big mall. so the public wanted moxhay to create a public park in 1974.

why do it in 1874 instead of 1848? because we are respecting private parties and their decisions.
but moxhay was a private party: why are tulk's private intentions more important than moxhay's? because moxhay bought certain rights and bargained for certain things. he was on notice.

why would it be so bad if it had remained private property instead of becoming state property? if it's private it's for the subjective interest of the private owner and public property -- for all the people who live near this -- their property interests may be affected.

this debate is over the locus of control, not a debate over what's fair and efficient, just over who gets to decide how land is used. this case is a discussion of who gets to decide how resources will get used.

these are the issues of the rest of the course.

till now, we've been talking about two extremes
1. private interests
2. interests of society as a whole

now we're filling in the interest details...

the authority to regulate the uses of property come from the state and from private parties:
- zoning
- takings
-

servitudes continued:
- p. 798 - 815
- p. 40 W. 67th st. v. pullman
- p. 821 - 841, 849 - 857

A has no claim to damages because there is no covenant running with the land, and so there is

Tuesday, March 16, 2010

property law: march 16 2010 class notes.

recap.
holdover
american rule v. english rule
NYS has adopted the english rule over the american rule
tenancy at sufferance

sublease and assignment
various remedies for holdover tenants
1. accept rent for a new term. however, it's clear that this acceptance is not for a new lease on same original terms, but instead for a periodic tenancy (for example, if the payment of rent is one month's, a month-to-month may be created OR a term of years may be created... there is statutory authority but in terms of its application, there's no clear test on this because not really a current issue)

ernst v. conditt.
we saw what happens when a tenant purports to transfer some of his interest in a property to a third party. we have to determine what we will call this transference.

1. does the transferee retain any interest after giving over to 3d party? such as some interest in the remaining term of the lease? the traditional common law test would find a sublease
2. does the transferee give all interest over to 3d party? under common law, this is an assignment.

n.b. -- the title doesn't matter in assignment

not clear that these test really gives different results!!

in ernst v. conditt the appellant said it was a sublease however, the court said that all the interest was conveyed... what do we call this? it's an assignment, because the original tenant did not have any interest left over in the property, though it was called a sublease. what does this idea of "intent" do, in this case? does it actually serve any purpose? what would their actions do that may have some inconsistency with their words or with their writing?

who cares whether its a sublease or an assignment?
privity of contract versus privity of estate!
privity creates legal duties that parties can enforce against each other. 
privity of contract is created by the voluntary agreements and relationships between people.

landlord and t1: estate and contract
t1 and t2: estate and contract.
landlord and t2: no privity!!

third party beneficiary: contract law will acknowledge a contract between 3d party if one party is explicitly agreeing to take on obligations that are of benefit to the 3d party.
most juris recognize 3d party beneficiaries. that would create

so to review:
in a sublease
L privity of estate and contract T1 privity of estate and contract T2
and between L and T2 any covenant explicitly assumed will convey a 3d party beneficiary contract

so what happens in default? what happens if there's waste?

in an assignment where the tenant has transferred all of his interest to the second tenant, are the landlord and T1 in privity of estate? no -- because the tenant had assigned all of the rights away
are they in privity of contract? yes -- because absent the landlord's consent, the tenant can't destroy the relationship

in an assignment where the tenant has transferred all of his interest to the second tenant, is there a privity of estate between them? no -- because T1 does not have property interest beyond the lease. T1 assigned the leasehold to T2. the other property interest is the landlord's in reversion.

assignment with novation!

n.b. -- see the powerpoint slides: the arrows indicate who can sue who ^__^

so back to ernst...
L contracted to T1 contracted to T2 which created an assignment of the estate interest between L and T2.
but rogers said, "i will stay responsible for the execution of the lease." is that consistent with an assignment? yes -- why? because rogers can still remain liable in privity of estate with ernst.

now, is there a privity of contract between ernst and conditt? no -- there is question of whether or not conditt explicitly assumed the obligations of rogers

there's an assignment between ernst and conditt. but it is questionable if there is a contract of 3d party beneficiary between them! therefore, the difference between assignment and sublease...

landlord's right to control tenant's disposition of leasehold interest:
ny RPL 235-f (the roommate law) -- the landlord has no right to restrict 1 roommate + his/her dependants per tenant on the lease, and any attempt to do so is unreasonable and unenforceable. must give the landlord 30 days notice.

kendall v. ernest pestana, inc
ny RPL 226-b (the sublet law)

issue of extortion...
the landlord
restraint on alienation (white v. lied, mountain lodge v. toscano) -- common and stat laws do not support restraint on alienation

what would be a problem with allowing the landlord to withhold consent? the landlord can extort more than he would have gotten from the original agreement

what about the reasonableness argument? isn't it reasonable that kendall is saying, if you want to make the assignment, the land is worth more? the court says that reasonableness here is that it's reasonable that the land is kept in use rather than held unused until there's a better offer

what about the clause in the lease contract saying that the landlord has full right to arbitrarily deny assignment?
the landlord should have the opportunity to vett any assignment that comes because of his right to protect his interest in reversion and his interest in economic efficiency. why should he still be held to a reasonableness scrutiny? because if the interest that the landlord has in denying assignment or sublease, it has to be based in these two interests and any other interests would be assumed to be exterior to the commercially and contractually valid interests

where you have leases that extend over a period of time, it's possible that the value of the property could

parties interested in creating rules to contract over time will probably want those agreements and interests to be retained. why? bargaining power

if you bargain for it, the landlord's restrictions under a residential lease

bird v. wiley
summer v. ridell
reyos

p. 421-449 and NY PRL 235-b, 223-b

Tuesday, February 2, 2010

property: feb 2 2010 class notes


recap.
5 elements are required:
i) actual and physical possession
ii) adverse or hostile
iii) exclusive
iv) continuous for the entire period
v) open& notorious

review mannillo v. gorski and walling v. pryzblyo: claim of title, good faith standard in adverse possession is created by the NYS statute
ME doctrine "bad faith standard": where you must establish that you took title under trespass
CT doctrine "objective standard": court doesn't care what the subjective reasons were for the taking, and it doesn't really impact the stare decisis or the impact of the
are the actions of the owner inconsistent with the recognition of superior title? has the owner essentially given over his expectation of exclusive and superior title?
permissive possession: further narrowing the scope of what we consider open&notorious (because now, mowing a lawn is open but permissive)
what's open&notorious?? how we want for reasonable owners to be on notice that they have a claim!
in mannillo v. gorski, the encroachment was on the land, but court did not charge the act as open&notorious because it would be unreasonable to require landowners to continually survey their property.
remedies in adverse possession: court will apply some equitable powers

tacking aggregation of possession by different persons acquired by voluntary transfer
whoa - tricky analysis!!

mr. howard is a jerk -- the land under each property is incorrectly titled. howard trades his title with the moyers (the people who own the land the kuntos are on) and then sues the kuntos.
kuntos assert that they have the land by adverse possession.
the howards win at trial court because:
continuous possession is not established -- a summer home and no tacking
however, acting like an owner with respect to the land will vary depending on what kind of land is at issue. for a summer home, the possessor should be there over the summer.
why?
problem
A enters on O's property. before the 10yr SOL is over, B ejects A. at the end of the 10yr period, who owns the property? O because A never acquired the land in a way such as to pass it on to B.

intent -- must be voluntary transfer of interest from party to party to create reliance on part of subsequent possessor's! this voluntary transfer is not present in threat or in successive squatting!
**privity of voluntary relationships**

should the kuntos be able to tack their interest? YES -- it's not their fault that their neighbors just realized that the land is incorrectly distributed
conflicting reasons for adverse possession: doctrine of laches (i.e. "sleeping on your rights") v. recognizing color of title

problem
O creates a will. A enters adversely on O's property and remains past SOL. O dies and his will leaves the property to B and remainder to C over time (meaning, when B dies C gets the property). who owns the property?
- when does SOL begin to run/ who is the first to have a COA? O had opportunity, but didn't exercise
therefore, O tacks privity to COA to B and C on burden of adverse possession of A! both C and B get their privity of interest from O, and when O created his interest, A was not in adverse possession of the land!

note -- government land: if our agents aren't able to monitor all our publicly possessed land, we don't want our policies to allow private parties to come and usurp our public rights to land

o'keefe v. snyder seaweed, cliffs and fragments went missing...
side note - another bouncing ball art blog
how is the open&notorious issue satisfied here, in regards to chattel?
let's review bailment (the winkfield) vs. theft
bailor --> bailee --> purchaser owner --> thief --> purchaser

the statutes of replevin will hold so long as the true owner in the exercise of reasonable diligence is not able to ascertain both that someone else is in possession and the person's identity such that they may file a lawsuit

was georgia diligent in finding the adversely acquired paintings?
what's diligence? reasonableness -- did she act in a way that would have been expected?

the relationships above relate to the voidable title: the relationship between o'keefe and steigitz was a bailor/bailee relationship where she could have protected herself by monitoring her contractual relationship in a way that can't be done when the dilemma is created by a thief.

how does adverse possession apply to the bailor/bailee and owner/thief scenarios?
a thief's possession can ripen to good title when the SOL of adverse possession is run.
but when is it run? DISCOVERY RULE
the discovery rule shifts the emphasis from the conduct of the possessor to the conduct of the owner. The focus of the inquiry will no longer be whether the possessor has met the test of adverse possession but whether the owner has acted with due diligence in pursuing his or her property
interesting excerpt from art services blog on ownership of art...