Acquisition by Find (Acq) 1. lost: finder only over everyone but TO 2. mislaid: locus owner (replevin) 3.

abandoned: first finder Labor Theory Expended labor !roperty value "ood fait# !uts to use (certainty of owners#ip) Adverse possession (AP)* 1. actual possession (entry use) o property 2. open $ notorious 3. exclusive 89E %. continuous &. non'permissive (. time )expectation notice person#ood certainty* repose sleepin+ t#eory earnin+ (best use) Adverse possession: State of Mind ,++ressive intent "ood fait# -ntent not matter Gift 1. voluntary (irrevocable* non'conditional* present* donative intent) 2. immediate transfer (delivery) 3. wit# acceptance * w.o consid.pay u!e A"ainst Perpetuities 1. no interest is +ood* unless 2. it must vest* if at all* no later t#an 21y 3. after deat# of some life in bein+ at t#e creation of t#e interest App!yin" AP 1. list all present interests 2. apply /,! to contin+* exec* sub0 open 3. determine vestin+ condition %. #ypot#esi1e birt#

&. 2ill all livin+s in bein+* int. after deat# (. #ypo situation vest 321y 4. stri2e lan+ua+e #T$ S 1. unity of time 2. title 3. possession %. interest LT !a% 1. term of years 2. periodic tenancy 3. tenancy at will %. tenancy at sufferance &b!i"ations of L 1. delivery of possession 2. restrict transfer on comm. rsnbl 3. miti+ate dama+es %. covenant of 5uiet title en0oyment i. ensure undisturbed en0oyment of premises for purposes leased &. implied warranty of #abitability i. ensure property is safe* clean* fit for #uman #abitation in essential facilities L's &ptions %hen T abandons 1. accept surrender* terminate (sue) 2. refuse to terminate* re'let (miti+ate) 3. leave vacant* let rent accrue* sue %. Enforce rent acceleration clause (uisance 1. intentional 2. non'trespassory 3. unreasonable %. substantial interference (sub0ective) &. wit# en0oyment.use of land

)nreasonab!e test for (uisance 1. t#res#old: level of 6s interference 2. balance #arm to v. 6s social benefit xtnt* c#arac* soc val* suitabty* brdn avoid 3. compensation: can pay to cause #arm *ase+ent by (ecessity 1. severance from 1 owner 2. no prior use 3. use was strictly necessary at sev. *ase+ent ,+p!ied fro+ Prior use 1. severance from 1 owner 2. 5uasi easement 3. use7 apparent $ continuous at time of sev. %. continuance is reasonably necessary Prescriptive *ase+ent 1. use of TO6s land 2. open $ notorious.visible 3. continuous.un'interrupted use: excl.concur %. ac5uiescence (most* not all) &. time -urden to ea! .ovenant 1. writin+ 2. intent to bind 3. touc# and concern %. #or. $ vert. privity &. notice -urden to *quitab!e cov/ 1. writin+ 2. intent to bind 3. touc# and concern %. notice -enefit to *quitab!e cov/ 1. relaxed privity

0th A+end+ent Ta1in"s 1. public purpose or public use 2. 0ust compensation Trade+ar1 Federa! La%s 1. ,:!, a. ;ad fait# intent to profit $ i. financial +ain ii. prior use wit# ;< offer of +oods.servs b. /e+isters* uses domain name= 2. >an#am a. test for li2eli#ood of consumer confusion i. relatedness to +oods ii. evidence of actual confusion iii. mar2etin+ c#annels used iv. de+ree of purc#aser care v. 6s intent in c#oosin+ t#e mar2 Partition of Property 1. !#ysical partition a. few owners b. wor2* effort* labor in land c. #omestead d. liveli#ood e. comin+ to source 2. !artition by 9ale a. impracticable or ine5uitable b. interest of all owners c. use or p#ysical partition decrease value d. many owners L's .o++ercia! easonab!eness Factors 1. financial responsibility 2. suitability of use 3. le+ality of use %. need for alteration &. nature of occupancy (. commercial ob0ections of current T

L's duty to Miti"ate 2a+a"es 1. offer.s#ow apt to ot#er Ts 2. advertise in papers 3. not re0ect proffered suitable Ts %. employ real estate a+ency &. put si+n in window T's re+edy for L's -reach 1. /emain in possession and= a. pay rent* sue > for dama+es i. as warranted ? defective value ii. rent ? <@A for defective apt iii. B diminution iv. discomfort and annoyance v. rent paid vi. punitive b. stop payin+ rent c. repair and deduct remedy 2. Terminate lease* abandon* sue Successor and (otice of .ovenant 1. actual notice 2. constructive notice 3. in5uiry notice %. imputed notice &. bona fide purc#aser defense .opyri"ht (.) 1. -ntan+ible -! Tan+ible embodiment 2. /i+#t of creativity 3. C1D(: ri+#t to reproduce* ri+#t to perform Patent (PT) 1. 3& 89:: new* useful* non'obvious 2. C1D1: process* mac#ine* manufacture* comp. 3. !rotect inventor and exclude ot#ers %. in0unction or profits Trade+ar1 (TM) 1. <irst use 2. !rotective by distinctiveness

Trade Secret 1. ,s lon+ as 2ept secret 2. Aalue is in t#e secrecy

,c5.....;y <irst !ossession or <irst :apture................................................................................................................. Pierson (capturer) v. Post (pursuer) ,c5.....;y :ustom and 8sa+e.............................................................................................................................................. Ghen v. Rich, the bomb lancer ,c5.....;y 8nfair :ompetition and Trespass...................................................................................................Keeble (pursuer) v. Hickeringull (intruder) (c).......Euasi'property ri+#t in #ot news* fair use...........................................................................................................................................INS v. AP () (c).......Fo property ri+#t in sil2 desi+ns* no :> copyri+#t.............................................................................................. Cheney ros. v. !oris Silk Cor". !T.......-n+enuity* social utility +iven liberal encoura+ement....................................................................................................... !iamon# v. Chakrabarty !T.......;reac# of fiduciary care and not conversion..........................................................................................................................$oore v. %he Regents T@......;ad fait# intent to profit from protected T@................................................................................... &irtual 'orks, Inc. v. &olks(agen o) America T@....../i+#t of publicity (no commercial profit w.o consent)7 confusion to public............................................................................... 'hite v. Samsung Excl..../i+#t to exclude sacred but not absolute................................................................................................. *ac+ue () v. Steenberg Homes, Inc. () ............ State ,)armer- v. Shack <ind....lost property: finder +ets ri+#ts over everyone but TO and prior possessors......................................................................... Armory v. !elamarie <ind....lost property in #ome: :as# found in t#e soil belon+s to t#e owner of t#e land (soil) w#o is locus owner.......................................Hanna v. Peel <ind....misplaced property: To employer as involuntary bailee (ri+#tful possession of ob0ect but not owner) of involuntary bailment not a+ent............. ,!......,ctual possession proven t#rou+# enclosure* cultivation or improvement.......................................................... &an &alkenburgh (/) v. .ut/ (,) ,!......;oundary dispute difficult to prove as open and notorious* but #ostility need not be malicious...................................$annillo (/) v. Gorski (,) ,!......;<!6s duty to c#ec2 provenance* +et insurance* ma2e in5uiries7 Gone cannot +et a +ood title from a t#iefH and TO involuntarily lost title.......... ,!......;<!: Transferee of property can only ac5uire ri+#ts t#at t#e transferor #ad...................................................................................8:: C2'%D3(1) ,!......9O> starts w#en , ta2es t#e land and uses it as t#ey own it (real) O/ w#en stolen., of t#e stolen property was discovered (personal).............. ,!......Iifficulty of Fotice to / wit# !ersonal !roperty* w#ere FJ #as Gdemand $ refusal ruleH or Gdiscovery ruleH.......................01Kee))e v. Sny#er "ift.....Fo symbolic delivery for inter vivos $ Ki+# intent and actual.constructive delivery in causa mortis..............Ne(man () v. ost (* executor) "ift.....-ntent in cause mortis #i+# by constructive delivery of 2ey to safe* formalities* purpose of vault to 2eep valuables...................%homas v. .e(is "ift.....<uture interest of inter vivos +ift can be +iven presently.........................................................................................Gruen (son) v. Gruen (mot#er) Est......<ee tail: post 1(DD* consider as fee simple absolute.................................................................................................................................................. Est......>ife tenant #as duty to not commit waste: affirmative and ne+li+ent waste............................................................................................................. Est....../ule of :onvenience in vested remainder sub0ect to open* w#ere only consider c#ildren in existence after deat# of present interest #older......... Est....../ule of Fon'destructibility of :ontin+ent remainders* even after life estate or fee tail terminates..........................................................................

coT.....9everance of LTM/9 wit#out a straw'person by :onversion into T-:.................................................................Ri##le (* 9urvivor) v. Harmon coT.....Fo 9everance of LTM/9 by @ort+a+e* @ort+a+e (encumbrance) not survive w#en LT dies..............Harms (9urvivor) v. S"rague (* executor) coT.....!#ysical partition 3 !artition by sale* interest (#omestead* wor2* liveli#ood) of all T-:s ta2en into account.................!el)ino () v. &ealencis coT.....8nlawful ouster allows ousted to sue for possession into premises 0ointly as coT* rent* profits* but not for exclusive possession..................... coT.....Iuties of :o'owners to eac# ot#er to allow for possession and entry but FO duty to pay rent.................................. S"iller () v. $ackereth () ............ coT.....>ease w.o permission of ot#er LT still valid* but encumbrance extin+uis#es at deat# of LT.............................S(art/baugh () v. Sam"son2 $r >.T......-nterpretation of Tenancy at Mill to be >ife Estate Ieterminable.....................................................................................Garner v. Garrish ,, %) >.T......> deal wit# a Koldover T by evictin+ or by #oldin+ to new tenancy wit# renewal by c#ec2 amount............Crechale 3 Polles, Inc. v. Smith ,%>.T......Obli+ation of > to deliver p#ysical possession to T in ma0ority rule..................................................................................Hannan v. !usch ,* .>.T......Transfer of lease as assi+nment re5uires privity in estate and in contract................................................................4rnst ,, .- v. Con#itt ,, %5>.T......> can restrict transfer on commercially reasonable +rounds.................................................................................... Ken#all ,%5- v. Pestana ,, .>.T......>6s first consent to an assi+nment implies waiver of consent for all subse5uent assi+nments....................................................................!um"or >.T....../eta2in+ by > from T by self'#elp (le+al entitled to possess peaceable) or by 0udicial process.................................... erg , %- v. 'iley ,, .>.T......> #as affirmative duty to miti+ate dama+es usin+ reasonable effort.......................................................................... Sommer ,.- v. Krie#el ,, %>.T......> #as obli+ation to ensure 5uiet en0oyment* w#ere breac# results in constructive eviction................................ Reste Realty ,.- v. Coo"er ,, %>.T......> #as to #onor implied warrant of #abitability in all residential leases* w#ic# can not be contracted away....................Hil#er ,%- v. St. Peter ,.Fus.....-ntentional conduct and #arm of oil refinery resulted in in0unction: t#res#old....................................................$organ ,- v. High Penn 0il Co Fus.....Fo +reat social benefit of apartment and #arm to residents: +ravity of #arm..................................................... 4stancias !allas Cor". v. Schult/ Fus....."reat social benefit of company allows #arm to be continued wit# permanent dama+es: compensation..................... oomer v. Atlantic Cement Fus.....:omin+ to nus* but consider utility of residents* w#ere remedy is in0unction wit# indemnification....................S"ur In#uc. v. !el 4. 'ebb !ev. Fus.....9cope* w#ere can cover solar ener+y nuisance....................................................................................................................Prah ,- v. $aretti ,Fus.....Fo nuisance for cuttin+ off li+#t and air and interferin+ wit# view................................................................... 6ountainebleau Hotel ,- v. 7858 Esmt...Express easement6s intent #onored w#en reserved to 3rd party and on constructive notice.............................'illar# v. 6irst Church o) Christ Esmt...;y estoppel +iven due to investment of dominant tenement and reliance for &'(y.......................................Holbrook ,lan# o(ner- v. %aylor ,Esmt...-mplied from prior use* utilities cases are sui +eneris and continuation is reasonably necessary................&an San#t ,- v. Royer ,, #ominantEsmt...;y necessity relies on strict necessity as t#e time of severance and for continued use............0then , , #ominant- v. Rosier ,, servient, leveeEsmt...!rescriptive easement sometimes re5uire exclusive use* t#ou+# ot#er states satisfied wit# concurrent use............................................................. Esmt...Easement can6t access non'dominant tenement but see if burden increased on servient tenement..................... ro(n ,, #ominant- v. &oss ,Esmt...Easement must be used in a way consistent wit# terms of +rant.reasonable expansion of scope...................................................Preseault v. 9.S Esmt...,bandoned if manifest present intent to relin5uis# easement or purpose inconsistent wit# future existence............................... Preseault v. 9.S. Esmt...Expanded to allow development of t#e dominant estate and ad0oinin+ non'dominant estates....................................................../est. 3d !roperty &t#........Expansion of &t# Ta2in+s to Gpublic purposeH..............................................................................................................Kelo v. City o) Ne( .on#on &t#........Even minute infrin+ements on &t# ,mendment ta2in+s are considered seriously..........................................................................................oretto :ov.....;urden of E5uitable covenants will run if t#ere is notice and even if no privity.............................................................................%ulk v. $o:hay %

:ov.....;enefit of E5uitable covenant will run wit# relaxed privity......................................................Ne"onsit Pro". 0(ner1s Assoc. v. 4migrant ank :ov.....,ffirmative actions will fulfill touc# and concern re5uirement.................................................Ne"onsit Pro". 0(ner1s Assoc. v. 4migrant ank

&

-. >O:NE,F >,;O/ TKEO/J69 ,. >abor over property O Owners#ip of property ;. ,ccession: w#en , adds #is labor to ;6s property ./ *3pended Labor 4 5a!ue of the Property 4 Good Faith 4 .ertainty of &%nership (puts to use) --. ,:E8-9-T-OF O< !/O!E/TJ O< </EE !/O!E/TJ ,. ;y :onstructive !ossession :ontrol 1 /atione soli ;. ;y <irst !ossession or <irst :apture: Pierson (, capturer) v. Post (* pursuer) :. ;y :ustom and 8sa+e: Ghen v. Rich, * the bomb lancer 1 /ule of :#ase a :ivil society* politeness* usa+e and custom b Expended ener+y for t#e c#ase* w#ere increased value of t#e #unted relates to increased labor I. ;y 8nfair :ompetition and Trespass: Keeble (* pursuer) v. Hickeringull (* intruder) 1 -nterference wit# a person6s liveli#ood and business pursuit s#ould not be rewarded E. ;y animus revertendi: an animal t#at comes bac2 is treated li2e a pet

---. ,:E8-9-T-OF O< -FTE>>E:T8,> !/O!E/TJ ,. Farrowly'defined exception for time'limited -! ri+#ts 1 /ewardin+ individuals for creativity and labor ,FI benefit t#e public and society as a w#ole (utilitarian) 2 !ro#ibit unaut#ori1ed imitation 3 :reate incentives for innovation and creativity* esp. to create societally beneficial inventions % /esponse to t#e free'rider problem: reap w#ere t#ey #ave not sowed ;. :opyri+#t* 14 89:: -ntan+ible -! Tan+ible embodiment 1 C1D(: ;undle of ri+#ts for copyri+#ted wor2s: ri+#t to reproduce copies* ri+#t to perform publicly 2 C1D4: <air use defense to limit exclusive ri+#ts dependin+ on extent of fair use :. !atents* 3& 89:: -nventions must be new* useful* and non'obvious 1 C1D1: process* mac#ine* manufacture* or compositions of matter 2 !rotect creator and exclude ot#ers I. Trademar2 law: !rotectability O distinctiveness 1 Trademar2 /i+#ts* also can include /i+#t of !ublicity for individual6s wit# famous identities a "ained by t#e first to use t#e mar2* not t#e first to re+ister it b !ro#ibit consumer confusion as to t#e source* sponsors#ip or affiliation of t#e trademar2ed +oods or services c /i+#t lasts as lon+ as t#e mar2 is used 2 9tate 9tatutes do not pre'empt common law* w#ere statutes can be limitin+7 :, statute protect visual li2eness not identity (#eld) 3 :ommon law: :, common law very broad* covers identity (reversed) % ,nticybers5uattin+ :onsumer !rotection ,ct* 1& 89: C112& a ;ad fait# intent to profit $ re+isters* traffics in* uses a domain name t#at is i -dentical or confusin+ly similar to distinctive mar2 O/ ii identical* similar or dilutive of a famous mar2 b ;ad fait# intent can include: -! ri+#ts of domain name* le+al name of person* prior use wit# bona fide offer of +oods or purc#ases* intent to divert customers from mar2* financial +ain by sellin+ wit#out usin+ domain name* misleadin+.false info w#en applyin+ for domain name* ac5uirin+ multiple domain names* extent to w#ic# domain name is or is not famous & >an#am ,ct protect Trademar2 to decrease consumer confusion (remanded) a Test for li2eli#ood of confusion: stren+t# of 6s mar2 i relatedness to +oods ii similarity of mar2s iii evidence of actual confusion iv mar2etin+ c#annels used v de+ree of purc#aser care vi 6s intent in selectin+ mar27 and vii li2eli#ood of expansion of product line. E. Trade 9ecret >aw: state law +enerally +overns* uniform act adopted by %D states 1 !rotect information useful because of its secrecy ,FI is t#e sub0ect of reasonable efforts to maintain t#at secrecy 4

Terms of protection: as lon+ as it is secret

-A. ,:E8-9-T-OF ;J <-FI ,. 9tate of t#e property 1 >ost: involuntary place a <irst finder +ets ri+#ts over everyone else but t#e true owner and prior possessors. Armory v. !elamarie i <inders are also possessors. b ;ailee owes t#e bailor a duty of reasonable care (ne+li+ence) c :>: possessor can sell property* not need to +ive bac2 to true owner i ,ssumption of t#e ris2 for t#ose w#o sell or purc#ase w#en t#e true owner s#ows up d Mit#in #omes i /eward #onesty for t#ose w#o report t#e finds* w#ere if true owner cannot be found t#en t#e finder s#ould 2eep it ii ;ut* better c#ance of true owner findin+ t#eir property if left wit# #omeowner iii <ound on property of #omeowner O belon+ to #omeowner* w#o is t#e locus owner iv :as# found in t#e soil belon+s to t#e owner of t#e land (soil)* Hanna v. Peel 2 @isplaced: voluntary place a "oes to t#e employer and not t#e a+ent b -nvoluntary bailee and bailor: involuntary loss O involuntary bailment i <inder could be an involuntary bailee (ri+#tful possession of ob0ect but not owner) 3 ,bandoned (intent* affirmative act and voluntary relin5uis#ed) a Fo interest of owner for property % Treasure trove: crown owns t#e buried treasure ;. Aalue of t#e property 1 >ost property is deemed to be t#e finest 0ewel in t#at fittin+ A. ,:E8-9-T-OF O< T,N-F" by :ultural !roperty ,. !atrimony: wor2s t#at are important to t#e society as a w#ole to t#e identity of t#e society* suc# t#at no one individual could or s#ould #ave owners#ip over t#em ;. /epatriation: return to t#e nation t#at t#e patrimony was ta2en from 1 @oral reasons* 8tilitarian reasons

A-. ,:E8-9-T-OF O< !/O!E/TJ ;J ,IAE/9E !O99E99-OF ,. Earnin+ t#eory 9leepin+ t#eory !ossession !erson#ood :ertainty.Efficiency Fotice to / Expectation of ,! ;. Elements of ,!: , ac5uires owners#ip (title) to /6s land by ,! w#en ,: 6 Actua! possession (entry 4 use) of the property 7 ,n a +anner that is open and notorious a "ives notice to / so t#at / 2nows t#at somet#in+ is +oin+ on and #as a c#oice about it 8 *3c!usive a Fot 0oint co'possession of property wit# / and , 9 .ontinuous 0 And non:per+issive (+ost contentious in !a%) a ,2a adverse* #ostile* under claim of ri+#t or claim of title ; For period of ti+e estab!ished by the app!icab!e statute of !i+itation for e<ect+ent actions (recovery under trespass or possession) a Tac2in+* w#ere t#e len+t# of time of possession are added to+et#er i /e5uires privity* suc# as formal conveyance of land (will or deed)* intestate succession (w#ere ,2 is #eir)* sales transaction wit# consideration 1 -mportant point is continuous dispossession by t#e true owner ii Ouster* w#ere one adverse possessor forcibly dispossesses anot#er adverse possessor (not in privity) :. 9tate of @ind /e5uirements of , and / 1 9tate of mind of , a Ob0ective test: intent of , is irrelevant* but is , actin+ li2e a true owner wouldR b "ood fait# (bi+ basis for color of title claim) test or bad fait# (a++ressive trespassers) test 2 9tate of mind of / a ,6s possession must be wit#out /6s permission I. -mpact of ,! on subse5uent purc#asers 1 !urc#asers ta2e land sub0ect to unrecorded titles previously +ained by ,! 2 ;urden on purc#asers to ma2e in5uiries of occupants 3 To succeed* , #as to act li2e t#e true owner a 9ome states re5uires , to pay taxes li2e t#e true owner b , #as to s#ow t#at t#eir actions would put a reasonable / on notice* w#ere , does not #ave to s#ow actual notice E. :olor of title versus claim of title 1 :laim of title: no written title* but ,! 2 :olor of title: defective title <. ;ona fide purc#asers of stolen property do not obtain title* as cannot +et +ood title from a t#ief 1 "eneral rule: owners do not lose title w#en #er property is stolen. a True owner did not#in+ to voluntarily lose title. b ;<! #as property ri+#ts over everyone but t#e true owner i Transferee of property can only ac5uire ri+#ts t#at t#e transferor #ad: :odified in 8:: C2'%D3(1) ii Encoura+es ;<! to investi+ate provenance* obtain insurance covera+e 1D

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,:E8-9-T-OF O< !/O!E/TJ ;J "-<T ,. Elements of a +ift 6 5o!untary a Ionative intent b -ntent for irrevocable* non'conditional* present transfer of owners#ip i M#en intent is stron+* re'delivery of an inter vivos +ift is not necessary. 7 ,++ediate transfer of property a transfer of possession* effective control b Ielivery divests donor6s dominion and control 8 $ithout consideration or pay+ent 9 $ith Acceptance a ,ssumed w#en +ifts are of value b "ifts cannot be rescinded once accepted. ;. :ausa mortis +ifts: made in contemplation of imminent deat# and +ift revo2ed if t#ey live 1 :onstructive delivery in causa mortis +ifts only apply to items incapable of manual delivery 2 9ymbolic delivery re0ected for causa mortis +ifts :. -nter vivos +ifts: +ift between t#e livin+ t#at cannot be revo2ed 1 9ymbolic delivery re0ected for inter vivos +ifts I. <uture interest can be +iven presently* Gruen (son) v. Gruen (mot#er) 1 -nter vivos +ift wit#out possession by son 2 9ymbolic delivery of future interests

11

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9J9TE@ O< E9T,TE9 ,. !resent Estates 1 Euantum of Estates a <ee 9imple 3 <ee tail 3 >ife estate 3 Fon'free#old estates ;. <uture Estates 1 Aested /emainder a Aested 9ub0ect to Open i /ule of :onvenience: c#ildren in utero w#en person in bein+ dies 2 :ontin+ent /emainder a /ule of Fon'destructibility of :ontin+ent /emainders i ,fter life estate.fee tail terminates* t#e :ontin+ent /emainder still exists even if t#e contin+ency #as not yet been fulfilled. ii @ean time* t#e property will revert bac2 to t#e true owner6s #eirs.

-S. :OF:8//EFT -FTE/E9T -F !/O!E/TJ ,. !#ysical partition (Gin 2indH) versus !artition by 9ale 1 <avor of p#ysical partition a <ewer owners b Mor2* effort and labor put into t#e land c Komestead d >iveli#ood use of land e 2nowin+ly bou+#t up s#are 2nowin+ 6s business 2 <avor of partition by sale a -mpracticable or ine5uitable b -nterest of all owners would be better promoted by t#e sale (burden on one favorin+ sale) c 8se or p#ysical partition of land results in decreased overall value d @any owners S. >,FI>O/I'TEF,FT >,M (Fon'free#old estates) ,. >ease #as two roles: 1 :onvey lease#old estate to lessee a Exclusive /i+#t of possession* ri+#t to use and en0oy 2 :onvey :ontract and :ovenants a !romises* -ntent of parties* Feed to cover* <airness* @iti+ation of dama+es

12

S-. -FTE/ A-AO9 T/,F9<E/ O< >E,9EKO>I -FTE/E9T9 ,. /elations#ip between 9ublease and ,ssi+nment 98;>E,9E ,99-"F@EFT !urpose of Transfer less t#an remainin+ period in lease Transfers entire remainin+ period in lease :onveyance ;etween > and T1 !rivity of :ontract !rivity of Estate !rivity of :ontract ) conse5uences T1 #as primary liability for rent as retain property T1 #as secondary liability for rent as no release T1 interest and #as duty accordin+ to N ;etween > and T2 Fo relations#ip !rivity of Estate !rivity of :ontract ) conse5uences T2 #as no responsibility to > as T2 not assume T2 #as primary liability for rent to > as assume covenants of T1 covenants of T1 >6s position > is 3rd party beneficiary to N between T1 and T2 ;. > can restrict T16s ability to transfer on commercially reasonable +rounds* =enda!! (T7) v. !estana (* >) 1 > #as absolute discretion to +rant or refuse consent to T6s transfer a @inus refusal based on discrimination b !olicies i >6s personal c#oice in selectin+ T ii :lauses to reserve >6s ri+#t to veto transfer is not ambi+uous iii Lustified expectations.detrimental reliance.stare decisis 2 > re5uired to use a commercial reasonableness standard (criteria must be ob0ective) a <actors to determine w#at is a commercially reasonable ob0ection to transfer i <inancial responsibility of proposed assi+nees ii 9uitability of use for t#e property iii >e+ality of t#e proposed use iv Feed for alteration of t#e premises v Fature of t#e occupancy vi :ommercial ob0ections by current tenants of t#e commercial property b !olicies i Iisfavors irrational restraint on alienation ii >'T relations#ips increasin+ impersonal iii "rowin+ s#orta+e of commercial space 1 > could be actin+ maliciously to t#reaten T to comply wit# >6s conditions 2 Fot want valuable real estate to be unproductive iv "ood fait# and fair dealin+: N principles 1 Fot 0ust transfer of property but a conveyance wit# promises v >6s commercial interest is still protected 1 T1 would assume secondary liability* wit# T2 assumin+ primary liability 13

S--.

IE<,8>T-F" TEF,FT ,FI >,FI>O/I69 O!T-OF9 ,. 9ummary of >6s options w#en T abandons 1 ,ccept T6s surrender of lease* t#ereby terminatin+ it a > may sue immediately under anticipatory breac# and for lost value dama+es (<@A less t#an rent) 2 /efuse to terminate and see2 to re'let premises on T6s account (i.e. miti+ation of dama+es) a > can sue later for rent dama+es minus amount miti+ated 3 >eave premises vacant* allow rent to accrue until end of lease term (minority of 0urisdictions) a > can sue T for entire rent at end of term % 9ee2 to enforce acceleration of rent clause a > can sue immediately ;. /eta2in+ of property from defaultin+ T by self'#elp or 0udicial process* ;er+ (* T) v. Miley (* >) 1 :ommon law: 9elf'#elp to reta2in+ w#en a > is le+ally entitled to ta2e possession ,FI b >6s means of re'entry are peaceable i >ess t#an actual or t#reatened presence ii Only real potential for violence (also loo2 to past relations#ip between > and T) 2 @a0ority law: 9elf'#elp is never permitted* > must use 0udicial process as remedy a 9ummary process is not 5uic2* efficient* or c#eap i :ostly on >* w#ere ot#er tenants #ave to assume t#is cost by #i+#er rent b 8sed in bot# commercial and residential leases 3 :,FFOT be contracted away* due to potential p#ysical dan+er from reta2in+. a E.+. G> #as option to reta2eH would not be read to allow self'#elp :. > #as responsibility to miti+ate dama+es* 9ommer (* >) v. =riede! ( > T) 1 :ommon law: > does not #ave duty to miti+ate dama+es a Only transfer of property interest* and > #as no ri+#t to interference b T breac#ed and is responsibility for conse5uences7 Fot want to promote abandonment 2 @a0ority rule: > #as affirmative duty to miti+ate dama+es usin+ reasonable efforts a @iti+ation of dama+es: cannot allow dama+es to escalate unreasonably (fair dealin+* e5uity and utility) b Feed to ma2e reasonable efforts: vacant stoc2 rule c <actors for reasonable dili+ence* fact'#eavy i Offer.s#ow apartment to ot#er tenants ii ,dvertise in papers iii Fot re0ect proffered suitable tenants iv Employ real estate a+ency v !ut si+n in window vi Ki+#er rent o2ay for ne+otiation d :onse5uences of not miti+atin+ 1%

i ,mount of recovery reduced by value w#at would #ave been if > used proper efforts S---. ;/E,:K-F" >,FI>O/I ,FI /-"KT9 O< TEF,FT ,. Iuties* ri+#ts and remedies of tenant and landlord 1 Iuty of >: :ovenant of 5uiet en0oyment for purpose leased a T #as defense of constructive eviction but re5uired to +ive up possession 2 Iuty of >: -mplied warranty of #abitability to maintain and deliver safe place a T #as defense of breac# of implied warranty of #abitability* and not re5uired to +ive up possession: ta2e T out of rent.wit##old rent 3 Iuty of T: Iuty not to commit waste a ;reac# by T if T ma2es c#an+es vital to substantial portions of premises % Fo Iuty of T to pay if destruction of leased premises a Today* obli+ation to pay would +o away: impossibility of performance* frustration of purpose* failure of consideration* force ma0eur ;. > #as obli+ation to ensure 5uiet en0oyment* w#ere breac# results in constructive eviction: /este /ealty (* >) v. .ooper ( > T) 1 On notice of problem and +iven reasonable time to correct t#e problem a Omission by > suc# t#at premises rendered substantia!!y unsuitab!e for purposes !eased> ?uiet +eans undisturbed en<oy+ent :. -mplied warrant of #abitability in all residential leases: @i!der (T) v. 9t. !eter (>) 1 -mplied warrant of #abitability in all residential leases a Fo e5ual bar+ainin+ between > and T b T loo2in+ for a safe place to stay* not a+rarian purposes c -ncreased reco+nition of contract principles d > more financially able to discover and cure defects 2 M#at is Kabitability and w#at is warranted by >R a L +ust +aintain and de!iver safe> c!ean and fit for hu+an habitation over a!! !atent and patent defects in essentia! faci!ities i -n common areas and livin+ areas t#at are vital to use of premises for residential purposes 3 T6s remedy for breac# of implied warranty of #abitability a T must put > on notice and +ive sufficient time to remedy i :ompensatory dama+es 1 G,s warrantedH value ? value of t#e dwellin+ as it exists in defective condition 2 ,+reed rent ? fair rental value of t#e premises durin+ occupancy in unsafe* unsanitary* or unfit condition 3 !ercenta+e diminution: #ousin+ department put in sc#edule a percenta+e for eac# defect % T6s discomfort and annoyance ii ,ll rent paid iii !unitive dama+es (bad landlord) if >6s conduct is willful and wanton I. 9ummary of options for T: T remains in possession and= a :ontinues to pay rent and sue > for dama+es O/ b 9tops payin+ rent O/ i M#ere T can assert defense of breac# of implied warranty of #abitability w#en > sues (some states re5uire escrow payments) c 8ses Grepair and deductH remedy 1&

i /easonable costs of t#e remedy will be deducted from t#e rent 2 T terminates lease* abandons premises* and sues > for dama+es (rescind N) S-A. F8-9,F:E >,M9: >,M O< FE-"K;O/9 $ OFE @ETKOI TO :OFT/O> >,FI 89E ,. ,nalysis for Fuisance claim 1 Establis#in+ liability for nuisance: >evel of interference to ri+#ts of private use and en0oyment of t#e land 2 Iefenses to t#e c#ar+e of nuisance a ,bility to avoid nuisance wit#out serious substantial or financial burden b :omin+ to t#e nuisance 3 /emedies w#en nuisance liability is found a Iama+es b -n0unction* or even an in0unction wit# indemnification c :ombination of remedies ;. Elements of Fuisance claim 6 +ust prove that 's conduct produced: a intentional* non'trespassory* unreasonable $ substantial interference w. en0oyment $ use of 6s land 7 ,ntentiona! a !urpose of causin+* 2nows t#at it is resultin+ from conduct or 2nows t#at it substantially certain to result b #as to #ave 2nowled+e of t#e effects of t#e action and continues on wit# t#eir actions 8 (on:trespassory 9 )nreasonab!e and a T#res#old test: focus on level of 6s interference wit#out considerin+ t#e utility of 6s conduct b :omparison test: balance #arm to wit# social benefits of 6s conduct* /est. 2d Torts CP2((a) Gravity o) harm 9tility o) 1s con#uct Extent of #arm involved :#aracter of #arm involved 9ocial value to use.en0oyment invaded 9ocial value to purpose of conduct 9uitability of use.en0oyment to locality 9uitability of conduct to locality ;urden to avoid #arm -mpracticable to prevent.avoid invasion c :ompensation test: #arm is serious but financial burden to compensate ma2es continuation of conduct feasible* /est. 2d Torts CP2((b) i can pay dama+es for #arm wit#out s#uttin+ down or be put out of business* t#en is liable and re5uired to pay dama+es ii Especially w#en companies #ave lots of social utility iii Fuisance cannot be avoided* t#is law is not to abate nuisance but an attempt to ma2e t#ose w#o suffered to be made w#ole by T 0 Substantia! interference (sub<ective test) a Evidence t#at was #armed* made ill b Iecrease in property value c Karm to personal property or real property 1(

d must #ave ordinary sensitivity $ith the en<oy+ent and use of 's !and

14

SA.

:,TE"O/-E9 O< E,9E@EFT9 ,. "eneral overview 1 Ief: non'possessory ri+#t to use land in possession of anot#er for a limited purpose a FO ri+#t to exclude wit# easements* as wit# possession via sale 2 Easement appurtenant versus Easement in +ross a Easement ,ppurtenant: benefits owner of t#e easement in t#e use of t#e owner6s land b Easement in "ross: benefits owner of t#e easement in t#e personal sense 3 Easement and /epairs a Easement +ives #older ri+#t to use7any repair related or necessary to allow use by dominant estate owner s#ould be paid by t#at owner b -f put burden on servient owner* t#en expand burden on t#e servient owner ;. Easement by Estoppel or -rrevocable Easement 1 Ot#er courts say t#at a parol license is revocable at will* t#ou+# t#ere is consideration and intent for a permanent ri+#t :. Easement -mplied from !rior 8se 1 :ourt loo2s more to policy and not intent of owner I. Easement by Fecessity SA-. 9:O!E O< E,9E@EFT9 ,. !roper use of an Easement 1 /easonableness standard 2 8se and extent of easement can c#an+e in time to allow development of t#e dominant estate and ad0oinin+ non'dominant estates: /est. 3d a !rescriptive easement less broad t#an ot#er types* w#ere prescriptive easement must be consistent wit# t#e +eneral 2ind of use by w#ic# easement was crated and w#at t#e servient owner reasonably expect to lose 3 8se wit#in ori+inal terms of +rant or a reasonable foreseeable expansion of t#e scope (narrower t#an /est. 3d) % /i+#t of respective parties & -ntent of t#e parties ;. Iealin+ wit# !roblems wit# Easements 1 :ondemnation proceedin+s* w#ere dominant tenement owner condemns easement and t#en pays for t#e property 2 /eward entitlement to owner of servient tenement so t#at bot# parties can bar+ain over t#e easement :. Termination of easements 1 ;y abandonment: manifestation of present intent to relin5uis# easement O/ purpose inconsistent wit# future existence 2 ;y prescription: 9ervient owner wron+fully and p#ysically prevents easement and dominant owner does not#in+ SA--. E@-FEFT IO@,-F !OME/ ,FI "OAE/F@EFT T,N-F"9: Ta2in+s cl. O !ublic 8se cl. Lust :ompensation cl. (&t# ,mendment) ,. !ower exercised in situations w#ere +overnment ta2in+ are 0ustified by Gpublic useH 1 !ublic 8se O use t#at would benefit t#e public a "overnment owners#ip (roads and #i+#ways)* private owners#ip but open to public (railroad companies* par2s) b Lustification: court decides w#at t#e law is 2 !ublic !urpose O as lon+ as +oal is not to on!y benefit a specific private individual* w#ic# benefits t#e public a Economic development (Nelo)* brea2 up oli+opoly (@id2iff)* mall in bli+#ted nei+#bor#ood (;erman) b Lustification: deference to le+islative 2nowled+e of community needs 1P

SA---. /E,> :OAEF,FT9 ,FI EE8-T,;>E 9E/A-T8IE9 ,. /eal :ovenant /e5uirements for ;urden to /un in @OFET,/J I,@,"E9 6 .ovenant in %ritin" 7 &ri"ina! parties intend to bind their successors a G;* #er successors* #eirs and assi+ns=H 8 .ovenant +ust touch and concern !and a :an be bot# ne+ative and affirmative covenants* Feponsit 9 @oriAonta! privity a Old En+lis# view: limited to mutual interest in t#e same land* e.+. tenant'landlord* dominant and servient tenement owners* life estate and reversion interest to +rantor b 89 view: successive interests in same land* suc# as conveyance wit#out any continuin+ relations#ip (+rantor.+rantee in <9,) c /estatement: no #ori1ontal privity re5uired* to deal wit# promises between nei+#bors 0 5ertica! privity a /elations#ip between ori+inal party and successor i 9uccessor must succee# to entire estate in land #eld by t#e ori+inal covenantin+ party ii Fo vertical privity if 0ust a lease ; Successor +ust have notice of covenant a ,ctual notice b /ecord or constructive notice c -n5uiry notice: loo2in+ at land d -mputed notice: relations#ip between ori+inal party and successor e ;ona fide purc#aser defense: purc#aser for value is not bound wit#out notice B. Equitable Servitude Requirements for Burden in Run an INJUNCTION of successors 1 :ovenant in writin+ 2 -ntent of ori+inal parties to bind successors 3 :ovenant must touc# and concern t#e land % Fotice to successor C. Equitable Servitude Requirements for Benefits in Run an INJUNCTION of successors 1 :ovenant in writin+ 2 -ntent of ori+inal parties to bind successors 3 :ovenant must touc# and concern t#e land % /elaxed !rivity* per Feponsit & Fotice to successor

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