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Property 2013
Anything you can think of!
192
Law
Graduate
05/18/2013

Additional Law Flashcards

 


 

Cards

Term

O conveys Blackacre "to A, B, and C as joint tenants." Subsequently A conveys his interest to D. Then B dies intestate, leaving H as his heir. What is the state of the title?

 

Definition
D is a tenant in common with B and C in 1/3. D is NOT a joint tenant with B and C.D does not have unity of time and title. B and C still have all 4 unities with each other so they are still joint tenants.
Term
O conveys Blackacre "to A, B, and C as joint tenants." Subsequently A conveys his interest to D. Then B dies leaving a will devising his interest to H. What is the state of the title and WHY?
Definition

D and C are tenants in common. D and C are tenants in common, D holding 1/3 and C holding 1/3.

 

B's interest still does to C (not H) because you can't devise an interest in a joint tenancy by will.

Term
Joint Tenancy
Definition
co-ownership but considered a single person under CL (legal function).
Term
Right of survivorship goes with what kind of concurrent estate?
Definition
joint tenancy
Term
Tenants in Common
Definition
Separate but undivided interests in whole property
Term
What kind of concurrent estate MAY be conveyed by deed or will?
Definition
Tenancy in common (no survivorship rights)
Term
What kind of concurrent estate requires 4 unities?
Definition
Joint tenancy
Term
The 4 Unities required for joint tenancy
Definition
1) Time; 2) Title; 3) Interest; 4) Possession
Term
What kind of concurrent estate is good for avoiding probate?
Definition
Joint tenancy (bc of the survivorship rights, the interest passes at death)
Term
What are the facts of Riddle v. Harmon?
Definition
Husband and wife buy property as joint tenants. The wife conveys property to herself making them tenants in common such that her husband cannot acquire her interest in property when she dies. Instead her interest will go to her heirs.
Term
What tricky thing does the court do in Riddle v. Harmon?
Definition

The court says that the joint tenancy can be severed unilaterally (the wife could sever the joint tenancy just by conveying it to herself - no straw man required to convey back to someone trying to work this)

 

Court felt that the requirement of a strawman as an intermediary was "archaic"

 

 

Term
What is FU's take on Riddle v. Harmon?
Definition
The court is making the chance to abolish the need for a strawman in a conveyence to sever a joint tenancy. The legislature considered this issue and didn't change the CL requirement, so maybe the courts shouldn't be doing this. Getting rid of the strawman requirement impedes on notice and transparency (to the other JT)
Term
What does "as joint tenants mean," "jointly," or "joined together" mean?
Definition
Means that you might not have the magic words to create a joint tenancy! The magic words: as joint tenants with right of survivorship.
Term
A and B are planning to get married. Two weeks before the ceremony, they buy a house and take title, "in A and B as tenants by the entirety." Several years after the marriage, A moves out of the house and conveys his interest in the house to his brother C. C brings an action to partition the property. What result? (p. 322)
Definition
A and B would be joint tenants at common law but they are most likely tenants in common. (Tenancy in the entirety requires marriage and they are not married). Maybe a court would give them joint tenancy bc its closer to what they wanted (since they're going to get married). Sorry I don't know what happens to C, though -LC
Term

Fred dies, leaving three children, Bob, Neil, and Darcy, and a widow Winnie, who has been the three children’s stepmother since shortly after their mother died many years previously.  Before dying, Fred asked his children to be sure that his widow has the financial ability to continue to live in the house, individually owned by Winnie, in which the couple had lived for the previous several years.  The children want to carry out their father’s wish, but they do not want his (or their own) wealth to go to Winnie’s children by a previous marriage.  They also want to share the burden equally among themselves and to be able to leave their portions to their own families.  After investigation, they discover that Winnie’s house is worth $99,000 and has a $33,000 mortgage and decide that the best way to help Winnie is to pay off her mortgage.  Which of the following courses of action will come closest to meeting their needs?  Explain your answer.

 

a.          They each pay $11,000 for a 1/9 interest in the house and become joint tenants with each other and with Winnie.

 

b.          They each pay $11,000 for a 1/9 interest in the house and become joint tenants with each other in 1/3 of the house and tenants in common with Winnie in the whole.

 

c.          They each pay $11,000 for a 1/9 interest in the house and become tenants in common with each other and with Winnie.

 

d.          They give Winnie the money to pay off the mortgage.

 

 

Definition
I THINK the answer is C-LC
Term
Did the CA Court of appeals uphold or reverse the trial court in Riddle v. Harmon?
Definition
Reverse.
Term
What case is this quote from? "Just as livery of seisin has become obsolete, so should ancient vestiges of that ceremony give way to modern conveyancing realities."
Definition
Riddle v. Harmon
Term
Facts of Delfino v. Vealencis
Definition
The Delfinos (Ps) and Ms. Vealencis (D) own as tenants in common real property in CT. It's a 20.5 acre parcel w Ms. Vealencis' dwelling on it. The Delfinos own an undivided 99/144 interest and Ms. Vealencis owns 45/144. Vealencis occupies the dwelling and a prtion of the land from which she has a garbage biz. None of the parties is in actual possession of the remainder of the property. Ps are real estate developers and want to develop the property after a partition by sale w proceeds going to the party's respective intersts. Vealencis would rather have a partition in kind so she can keep her house/biz.
Term
What kind of concurrent estate did the parties have in Delfino v. Vealencis?
Definition
The parties were tenants in common.
Term
What did the plaintiffs want in Delfino v. Vealencis?
Definition
Plaintiffs want a partition by sale with a division of proceeds according to their respective interests. (Ms. Vealencis wants an in-kind partition).
Term
What was the holding at the trial court in Delfino v. Vealencis and what was the result on final appeal?
Definition
Trial court said a judicial sale was appropriate bc a partition in kind could not be had without "material injury" to the respective rights of the parties. Upper court remanded for "further proceedings not inconsistent with this opinion." (they disagreed).
Term
What is the holding and reasoning in Delfino v. Vealencis?
Definition
Ms. Vealencis gets her partition in kind because the conditions for warranting a partition by sale are not met, and the sale of one's property w/o his consent (ie a partition by sale in this particular case) is an extreme exercise of power. The lower courts should consider the intersts of ALL the tenants in common, not merely the economic gain of one tenant.A partition of sale would force Vealencis to surrender her home and perhaps would jeopardize her livelihood.
Term
What facts did the court in Delfino v. Vealencis find pursuasive?
Definition
a) Given the situation and location of the parcel of land, the size and area of the property, the physical structure on the property, etc., a partition in kind would be practicable. B) The trial court was wrong in their arguments about Ms. Vealencis not being able to continue her garbage business and they were speculating anyways. c) the trial court had failed to consider that Vealencis had been in actual and exclusive possession of a portion of the property for a substantial period of time, she made her home on the property, she derives her livelihood from the operation of a business on that portion, as her family has for many years.
Term
What was the trial court's reasoning in Delfino v. Vealencis?
Definition
The trial court said that a judicial sale was appropriate bc if there was a partition in kind, continuation of Ms. Vealencis’ garbage company would hinder the development of the Delfino’s parcel for residential purposes, which the trial court conluded was the highest and best use of the property --> concern over possible adverse effects. They also cited to the fact that her garbage company was in violation of existing zoning violations and thus would be unlikely to continue doing that in the future (wait, so my thoughts: shouldnt that have weighed in favor of Vealencis?)
Term

Term of Years

Definition

Estate lasts for some fixed period of time, or a period calculable by formula (up to 99 yrs)


Term

Periodic Tenancy

Definition

Fixed duration that continues for succeeding periods until landlord or tenant gives notice of termination (month-to-month, year-to-year)


Term

Leasehold

Definition

Holder of a greater interest (landlord) transfers possession to tenant for a period


Term

Tenancy at Will

Definition

No fixed period, endures so long as landlord and tenant desire


Term

Tenancy at Sufferance

Definition

Tenant remains in possession after valid lease has ended (“holdover tenant”)


Term

If holdover tenant continues to pay rent and Landlord accepts?  

Definition

He is tenant at will and not a trespasser; new tenant can sue landlord.


Term

Caveat Emptor

Definition

Landlord does not warrant fitness; tenant has right to inspect premises


Term
Covenant of Quiet Enjoyment
Definition
Implied in every lease that tenant has right to not have possession and enjoyment interfered with
Term

Constructive Eviction

Definition

Landlord’s acts or omissions make it extremely difficult for tenant to use the premises (can be total and affect the entirety of premises or partial and only affect part of premises)


Term
Implied Warranty of Habitability (IWH)
Definition
Landlords leasing residential property warrant that premises are maintained in compliance with housing codes; premises are safe and habitable (Upham says this is vague enough to argue in many ways)
Term

American Rule (of Quiet Enjoyment)

Definition

Landlord is obligated to deliver legal but not actual possession.

(Derives from the agricultural nature of leases that was more hands-off for lessor)


Term
English Rule (of Quiet Enjoyment)
Definition
Landlord is obligated to deliver legal and actual possession. (Followed by most US courts; under the Restatement this is waivable under the Uniform Act it is not waivable.)
Term

Garner v. Gerrish

Upham’s Take

Definition

This isn’t a commercial lease, we should interpret the agreement in a way that allows the tenant relationship to be implemented and continue.


Term

Garner v. Gerrish

Facts

Definition

Garner (landlord) had lease with Gerrish (tenant) that explicitly stated that Gerrish had option to terminate agreement at any time.  Garner, assuming he also had power to terminate, brought suit to evict Gerrish.


Term

Garner v. Gerrish

Lower court Holding

Definition

Held that it was a month-to-month tenancy at will that landlord could terminate. The lease is indefinite and uncertain with regard to the length of time the tenant can occupy premises.   (Reversed)


Term

Garner v. Gerrish

Holding

Definition

Lease that expressly gives right to terminate agreement only to tenant creates a determinable life estate for the tenant.  Expressly and unambiguously grants right to tenant to terminate and not to landlord.


Term

Dependant Covenants

Definition

 Mutually obligatory.  Tenant’s obligation to pay rent was dependant on landlord’s obligation to give tenant legal right to possession (at common law, now more expansive obligations for landlord).


Term

Hanan v. Dusch

Facts

Definition

Defendant landlord (Dusch) entered lease with plaintiff tenant (Hannan).  When lease term was to begin, def’s prior tenant wrongfully held over (stayed).  Pltf argued that implied covenant of quiet enjoyment obligated def to take legal action to oust holdover tenant.

Term

Hanan v. Dusch

Holding

Definition

Absent an agreement to deliver actual possession, landlord only has duty to deliver legal possession.  Responsibility of ousting holdover tenant rests with new tenant.  (American Rule)

Term

Hanan v. Dusch

Upham’s Take
Definition
Covenant of quiet enjoyment only requires that landlord doesn’t legally interfere with denying the tenant the right of possession.  Although L&E may argue that landlord has knowledge and resources that put him in better position to oust holdover hence preferring the English Rule, this CL rule is efficient because the tenant has a remedy against the wrongdoer.
Term

Reste Realty Corp. v. Cooper

Facts

Definition

Cooper (def, tenant) has serious recurring flooding problems that the superintendent had promised to fix.  She entered second lease and problems continued.  She left premises, refused to pay remaining rent, and is now sued by landlord (pltf).


Term

Reste Realty Corp. v. Cooper

Lower court

Definition

Trial Ct for Cooper on grounds of constructive eviction.  App Ct reversed on grounds that there was not proof of a wrongful act by the landlord and tenant waived rights by failing to remove from premises within reasonable time after any wrongful act.


Term

Reste Realty Corp. v. Cooper

Holding

Definition

For pltf, there is a breach of quiet enjoyment which is always implied.  Ct rejects caveat emptor argument that she knew about the problems and accepted them with second lease because she relied on the promise that it would be fixed. This was constructive eviction because it interfered substantially with tenant’s use, and the reasonable time permitted is relative to the case at hand.  


Term

Reste Realty Corp. v. Cooper

Upham’s Take

Definition

 Ct handles this case with constructive eviction, but they could have taken a shorter step and handled it in one of three other ways. First:  the explicit promise to repair makes the tenant’s obligation to pay rent dependant on landlord’s obligation to make the repair. Second: idea of latent defect that tenant could not have seen the flooding problem prior to renting.  Third: landlord’s obligation includes maintaining the common areas (the parking lot leveling caused the problems) and tenant has a right/easement to use the common areas.  But court takes a stronger route because society and courts are seeing a lot of change.

Term

T is tenant at will of L.  L creates nuisance that interferes with T’s business on the leased premises.  T vacates, rents equivalent space at higher rent and sues for damages on theory of constructive eviction arising from breach of covenant of quiet enjoyment.  What result?

Definition

In tenancy at will, both L and T have ability to terminate lease.  T claims constructive eviction because L created the nuisance, but L will just say the lease is over (L evicted T but in tenancy at will, T can be evicted at any time). Thus there is no right to stay there under the lease, L wins.

Answer under contract law:  T could win if court thought the nuisance L created was unconscionable.


Term

T has term of years lease and vacates premises prior to end of term, stops paying rent.  L sues for unpaid rent and T asserts defense of constructive eviction, claiming L failed to control excessive noise made by neighboring tenants. What result?

Definition

If it’s not a common area, L cannot enter so he does not have control, but he does have obligation to take action against noisy neighbor because of his obligation to other tenants.  Court would likely find for T.

Term

T has term of years lease and vacates premises prior to end of term, stops paying rent.  L sues for unpaid rent and T asserts defense of constructive eviction because of criminal activity in the building.   What result?

Definition

If L is in compliance with the security requirements of the housing code, then criminal activity is beyond L’s control, find for L.

Term

T has term of years lease and vacates premises prior to end of term, stops paying rent.  L sues for unpaid rent and T asserts defense of constructive eviction because of protestors in the lobby.  T complains but L does nothing. What result?

Definition

L can prevent activity in common areas, court finds for T.  


Term

Brown v. Southall Realty

Definition

Know that this is initial expansion of law to include the obligation of landlord to comply with housing codes. “Illegal lease case” -- lease is void because it does not comport with housing regs.

Term

Hilder v. St. Peter

Facts

Definition

Hilder (pltf tenant) leased apartment from St. Peter (def landlord) that was in terrible state of disrepair.  Despite complaints by Hilder and ample notice of code violations, St. Peter failed to correct problems.  Hilder did NOT vacate but stayed and paid all rent due, and now sues for reimbursement plus compensatory and punitive damages.

Term

Hilder v. St. Peter

Holding

Definition

Tenant is not required to move out to avoid paying rent under the implied warranty of habitability and can seek damage for rent paid, discomfort and annoyance, punitive damages, or make repairs and deduct that cost from future rent.

Term

Hilder v. St. Peter

Upham’s Take

Definition

Reversal of Hanna because the implied warranty of habitability is so robust.  This case stands for the tearing down of numerus clausus and the ability to contract and have freedom of choice.  Tenant knew what she was getting and she needed something very inexpensive because she did not have much money and so she knew (at least in part) that the building had problems.  There is no way to customize the contractual relationship when the parties are so bound by the government and regulations.  


Term

L offers small run-down house for rent at $100/month.  T inspects, finds defects and accepts it at $50/month.  L agrees, T takes possession but doesn’t pay rent.  In eviction suit by L, can T assert breach of implied warranty of habitability (IWH) as defense?

Definition

Yes, L has obligation no matter what IWH is not waivable.  Public law takes precedence; you can’t bargain your way to a lower standard.

Term

Upham’s theoretical take on IWH

Definition

Society has decided through the democratic process that there is a certain minimum standard for living conditions.  Rather than put money toward public housing, the government put requirements on the private landlords.  The standard lease involves tenants who do not have resources and knowledge to negotiate nor do they have skills to fix problems nor do they have real bargaining power to “threaten” to go elsewhere.  

Term

T leases a fancy UES apartment and something is wrong with the pool. Can T sue under IWH?

Definition

No, the contract and agreement between L and T does not matter.  IWH does not touch the extra amenities and is only about the minimum standards.

Term

Javins, Saunders and Gross v. First Nat’l Realty Corp.

Definition

Know that this is similar to Hilder.  Warranty of habitability is implied in residential leases; tenant’s obligation to pay rent is dependant on landlord’s compliance.

Term
What is the context of this quote? "It is unreasonable to suppose that a man would knowingly contract for a lawsuit, or take the chance of one."
Definition
Discussion in Hannan v. Dusch about the English Rule: defending the E.R. as being most in consonance with good conscious bc it could not be supposed that a tenant would enter a lease if he knew at the time that he could not obtain possession at the stated date, but instead he would be compelled to begin a lawsuit before he could obtain possession of the land he leased.
Term
What is Upham's problem with balancing tests for nuisance? (hint: think about Prah and solar power)
Definition
If you have to do a FULL exposition of ALL the facts to do the balancing, how far will that go? Will you have people testifying about their tours in Iraq and Afghanistan, and thus arguments about decreasing the US dependence on oil? No. But where do you draw the line? This is a reason for the court to mind it’s own business.
Term
The Cause of Action in Morgan v. High Penn Oil Co.
Definition
Private nuisance (civil action to recover temporary damages) and to abate nuisance by injunction
Term
Facts of Morgan v. High Penn Oil Co.
Definition
P owns property with home, restaurant, and trailers, and brings an action to get temporary damages for private nusiance and an injunction to prevent D from emitting nauseating gases and odors from its refinery
Term
What is the holding and Reasoning of Morgan v. High Penn Oil Co?
Definition
P wins temporary damages (past damages for what they've already been through) and an injunction (order for the refinery to stop, even if it means shutting down the factory). But why is it unreasonable? Because the jury said so and they can find whatever they want!
Term
Which case upholds this to a T? "A private nuisance exists in a legal sense when one makes an improper use of his own property and in that way injures the land or some incorporeal right of one's neighbor" - also says that the issue for when a person is subject to liability for an intentional invasion is whether the invasion is "unreasonable under the circumstances..."
Definition
Morgan v. High Penn Oil Co.
Term
What are the two "unreasonableness" tests for nuisance?
Definition

1. Threshold test

2. Look at the two uses as merely incompatible: neither is wrongful

Term
Which use was the "unreasonable" one in Morgan v. High Penn Oil Co.?
Definition
High Penn Oil Co.
Term
What was the remedy offered in Boomer v. Atlantic Cement Co. and why?
Definition
It was an injunction conditioned on permanent damages (If D paid damages then no injunction). They want to avoid the injunction because they don't actually want to close down the plant bc of the benefits it offers. They say that they think paying permanent damages will be an effective spur to research for improved techniques to minimize nuisance.
Term

Real covenant

Definition

Promise respecting the use of land that runs with the land at law.


Term

Purpose of covenants

Definition

Methods to enforce the intent of the original parties of the promise.  Courts have set up strict requirements for covenants because they have binding effects for the future.


Term

Privity of estate

Definition

Traditionally, between a landlord and tenant but now expanded and applies to the parties to a conveyance or assignment, the grantor and grantee.

Term

Horizontal privity

Definition

Between the original covenanting parties. Relationship and conveyance reflect the promise. Usually between the grantor and grantee.

Term

Vertical privity

Definition

Between one of the covenanting parties and a successor in interest.

Term

Requirements for the burden to run

Definition

 (1) Intent to bind successors; (2) Notice to the party to be bound; (3) Horizontal privity; (4) Vertical privity; (5) Touch and concern the land (HP not required in all jurisdictions)

Term

Requirements for benefit to run

Definition

 (1) Intent to bind successors; (2) Vertical privity; (3) Touch and concern the land


Term

Equitable servitude

Definition

Similar to real covenant but enforceable for injunction and does not require privity.


Term

Remedies for real covenant and equitable servitude?  

Definition

RC = damages; ES = injunction. (RC is like contracts and ES is like real property)

Term

Uniform Building Plan

Definition

Requires universal scheme that benefits/burdens all the land; reciprocity; balanced and fair

Term

Reciprocal negative easement

Definition

 Legal fiction, created by uniform building plans and developed communities

Term

A and B are adjoining landowners. A covenants not to use land for anything but residential.

Who has the benefit; who has the burden?

Definition

 A has the burden; B the benefit.

Term

A and B are adjoining landowners. A covenants not to use land for anything but residential. A conveys C and C attempts to build a store. B v. C. Which has to run?


Definition

Burden.

Term

A and B are adjoining landowners. A covenants not to use land for anything but residential. A conveys to C, and B conveys to D, and C starts to build a store. D v. C, which has to run?

Definition
Both.
Term

A and B exchange such covenants.

Who has burden/benefit?

Definition

Mutual

Term
A and B exchange covenants. A conveys to C, and C attempts to build a store. B sues C. Which has to run?
Definition
Burden.
Term
A and B exchange covenants. A conveys to C, and B conveys to D, and C starts to build a store. D sues C, which has to run?
Definition
Both
Term

A and B are neighbors. They exchange promises to use residentially. A conveys to C. B begins to run a store. C sues B. Identify what must run and the privities required.

Definition

C has benefit, it must run.  Only vertical privity is  needed so C wins.

Term
Is the judicial innovation of Boomer based on the same judicial role as Popov?
Definition
Not quite. Popov was trying to do justice. Boomer is more policy oriented.
Term

A and B are neighbors. They exchange promises to use residentially. A conveys to C. C begins to run a store. B sues C. Identify what must run and the privities required.

Definition

B has benefit, which does not need to run, and C has burden, which must run. That requires horizontal privity, there is no HP, so C wins.

Term

A and B are neighbors. They exchange promises to use residentially. A conveys to C,and B conveys to D. D begins to run a store. C sues D. Identify what must run and the privities required.

Definition

Both the benefit and burden must run, requires horizontal and vertical privity. The absence of HP means that D will win.


Term

CG to B/CG to C/CG to D, so that B, C, & D are now neighbors each having promised CG that she would not use the land commercially. B sues CG after first conveyance

Definition
CG never made promise, CG wins.
Term
CG to B/CG to C/CG to D, so that B, C, & D are now neighbors each having promised CG that she would not use the land commercially. C sues B.
Definition

C will win b/c the benefit must run and C is in vertical privity with CG, who was original promisee. The burden need not run b/c B is the original promisor.

Term
CG to B/CG to C/CG to D, so that B, C, & D are now neighbors each having promised CG that she would not use the land commercially. B sues C.
Definition

C Ped CG something, but B was merely CG's neighbor at the time. CG never Ped B anything, so no enforcement.


Term
CG to B/CG to C/CG to D, so that B, C, & D are now neighbors each having promised CG that she would not use the land commercially. D sues C or B.
Definition

D is in vertical privity with CG who received promisess from both B and C. Only the benefit need run, so D can enforce.


Term
CG to B/CG to C/CG to D, so that B, C, & D are now neighbors each having promised CG that she would not use the land commercially. B or C sues D.
Definition
D only promised CG, no enforcement
Term
CG to B/CG to C/CG to D, so that B, C, & D are now neighbors each having promised CG that she would not use the land commercially. CG sues D.
Definition
Although strange because CG has no land, CG can enforce against D on contract.
Term
CG to B/CG to C/CG to D, so that B, C, & D are now neighbors each having promised CG that she would not use the land commercially. If CG conveys to E the right to enforce, can E enforce?
Definition

This is the Neponsit issue. E is not in vertical privity with CG.

Term

Tulk v. Moxhay

Facts

Definition

 Tulk (pltf) sold land (Leicester Square garden) with both restrictive and affirmative covenants.  Def got land in deed that was silent about the covenant, but he had actual notice of its existence.


Term

Tulk v. Moxhay

Holding

Definition

Enforces restrictive covenant.  Covenants directly affect value of land.

Term

Sanborn v. McLean

Facts

Definition

Defs (McLeans) want to build gas station behind house, but pltfs seek injunction based on the residential use restriction.  Most of the lots in the neighborhood were sold with restrictive covenant expressly providing that they be used for residential purposes only.  But the defs deed did not have the express restriction.

Term

Sanborn v. McLean

Holding

Definition

 Existence of a visible uniform plan of use is sufficient to give inquiry notice (constructive notice because they can look and see the restrictions, it’s that clear).  

Term

Sanborn v. McLean

Upham’s Take

Definition

McLean should have won because the Common Grantor never made a promise but this uniform building plan was enough.  

Term

Neponsit POA v. Emigrant Savings Bank

Facts

Definition

Neponsit Property Owners Association (POA) sought to enforce covenant requiring owners of lots to pay an annual fee for upkeep of the area.  Def argued that covenant did not “touch and concern” the land because it is a fee, not about land use.

Term

Neponsit POA v. Emigrant Savings Bank

Holding

Definition

The covenant substantially alters the legal rights that flow from ownership of the land and which are connected with the land.  It is a question of degree, but in this case suffices.  

Term

Neponsit POA v. Emigrant Savings Bank

Upham’s take

Definition

There is no vertical privity and this is an affirmative duty, but the court looks beyond the doctrinal requirements to enforce the intent.  Ct infers that the money is to be used for the land, so it “concerns” the land.

Term

Rhue v. Cheyenne Homes

Facts

Definition

Subdivision has restrictive covenant that requires all building to be approved by architectural control committee.  There were no specific standards, but Cheyenne Homes wanted to prevent Rhue from bringing in an architecturally nonconforming house.  

Term

Rhue v. Cheyenne Homes

Holding

Definition

 The intention of the covenant is clear and the prior approval is reasonable even without specific guidelines.  Inquiry notice is sufficient.

Term

Davis v. Huey

Facts

Definition

Davises’ plans accorded with set-back and side-line restrictions but was different than most of the other homes.  There was no general plan or scheme to place them on notice.  

Term

Davis v. Huey

Holding

Definition

There is insufficient notice to make this enforceable.   Any scheme or plan was based on voluntary decisions of the neighbors, not a development plan.  It would burden the Davises without allowing them the benefit to participate in planning the area.  

Term
Declaration of Covenants for Columbia, MD
Definition

Uses a strawman to avoid requirement of common plan.  HRD owns the land and conveys it to CPRA with restrictions, who conveys it to Ames, who conveys it back to HRD.  Land is now burdened.

HOA acts as a private government, they are the only party that can enforce the covenants.  Not a uniform building plan but a universal one.

Term

What is the structure and purpose of the conveyances among HRD, CPRA, and Aileen Ames described in the beginning? Who is Ames and why should we care about her marital status?

Definition

It’s a strawman agreement.  Ames is someone independent of the developer.  They note that she is unmarried because at common law a spouse always had interest in real property.

Term

Who decides what a property owner in Wilde Lake Village can and cannot do with her property? What standards will be used? We will consider the Rhue and Davis cases in conjunction with this question.

Definition
Architectural committees and the homeowners’ association.  Must be fair and in good faith, but will likely be broad if there is some kind of inquiry notice applicable.
Term

To what extent can the CPRA waive or amend the restrictions? Why would a homeowners association want to do so?

Definition
They can grant variances if they are reasonable and the neighbors have been notified and don’t object.  It’s about what the neighborhood wants.  
Term
Requirements for a covenant to bind future parties
Definition


 

(1)  Original parties must intend the burden (or benefit or both) to run

 

(2)  Horizontal privity of estate between original parties (in order for burden to run)

 

(3)  Vertical privity of estate between original promisor and the successor to the burdened estate

 

(4)  Substance of promise must touch and concern the burdened land, and usually the benefited land as well (but the focus has shifted towards the effects of the covenant to determine touch and concern: see Neponsit).

 

Term
What are the requirements for an equitable servitude to bind future parties?
Definition
(1) Intent (2) Notice - actual or constructive (3) touch and concern
Term
Village of Euclid v. Amber Realty Co. - facts
Definition
Amber Realty Co. argues that the zoning ordinance (which established classes of use/height/area districts) violates the 14th amendment, deprives him of property w/o due process, and denied equal protection of the law. He asks for an injunction restraining the enforcement of the ordinance. He argues that the zoning decreases the value of his property by acre.
Term
The holding and reasoning in Euclid v. Amber Realty Co.
Definition
The zoning ordinance was OK as a valid exercise of state's policy power. (note: court ignores the takings issue in the case). So long as the validity is "fairly debatable," legislative judgment must be allowed to control. Power to zone is similar to rationale for abating nuisance. Segregation of uses has benefis such as: optimal fire safety devices, reduces noise in residential neighborhoods, better environment for children.
Term
3 tensions in zoning
Definition


 

1)    When is the restriction on land use so great that it constitutes a taking of the property?

 

2)    The conflict between centralized planning and individual rights

 

3)    Tension between adherence to a plan/centralized planning and the necessarily flexibility to adjust to unanticipated changes. (Plans will always be inadequate and will always have to change – so how do you manage the tension between legitimate and illegitimate changes?)

 

Term

5 ways to deal with the need for flexibility in zoning

 

Definition

(1)  Pre-existing nonconforming uses

 

(2)  Variances or special permits specific to individuals’ lots (administrative decisions)

 

a.     For when there is no question of an unconstitutional taking bc its not a pre-existing use, but there is still some need for the landowner to get a variance from the zoning regulation.

 

b.     Most just granted illegally from people’s neighbors, and then you take a note of permission from your neighbors to the zoning board (illegal bc they are supposed to be granted when there is unnecessary hardship, not just when your neighbors are OK w what you want to do). FU thinks this is how the law SHOULD work

 

(3)  Amendments/Re-zoning (legislative decisions) (=when the comprehensive fails to anticipate a social development)

 

(4)  Special permits built into zoning ordinances (like anticipated variances)

 

(5)  Density zoning (Planned Unit Developer says they will violate zoning ordinances within a given lot but they will still maintain certain density restrictions, or limit variety of uses). Allows for variety.

 

Term
What is the basis of Amber Realty's attack on zoning? What property did it loose?
Definition
Amber Realty argued that the value of its land had diminished by 75%. (note: Classic argument against zoning or any kind of land use regulation)
Term
Why do states prefer zoning to eminent domain?
Definition
It's must cheaper bc they don't have to pay for zoning. Imposes costs on private land owners. Make individuals pay the cost necessary for the community to get what it wants.
Term
Facts of Stoyanoff v. Berkeley
Definition
Architectural board did not approve plans for the house shaped like a frog in the well-to-do city of Ladue. Zoning regulations were made in accordinance with a comprehensive plan "designed to promote the health and general welfare of the residents of teh City of Ladue." Plans were unusual but otherwise complied w existing building and zoning regulations.
Term
Holding and Reasoning of Stoyanoff v. Berkeley
Definition
Holding: Court upholds the ordinance to prevent the building of the house on aesthetic grounds. ReasoningZoning board has the power to protect housing prices. Property use which offends sensibilities can debase property value, and thus impacts the public bc the tax base of the community is affected.
The court also says that there is no reason not to say that “good taste” is not a matter of general welfare.
Term
FU's take on Stoyanoff v. Berkeley
Definition

 

-       The government is telling people what their tastes must be. If you are going to live in this political entity, you must have this taste or tolerate it. But you cannot have another. (Intrustive role of government).

 

Term
Facts of Anderson v. City of Issaquah
Definition
P wants to build a store in a commercial area but the Board denies bc supposedly didn’t fit with aesthetic standard of care. Another aesthetics issue, but this is a procedural due process case bc the poor guy has no idea how to satisfy the zoning board. They deny his application a million times.
Term
Holding and reasoning of Anderson v. City of Issaquah
Definition

Holding: Code sections were unconstitutionally vague on their face. They did not give effective or meaningful guidance to applicants. As applied to Anderson, they also failed to pass constitutional muster. Reasoning: The commissioners weren’t enforcing a building design code but their own arbitrary conceptions. Court rejects the city’s arguments that the code is not unconstitutionally vague bc aesthetic considerations are subjective in concept. Court finds that aesthetic considerations are NOT impossible to define in a code. Also, any procedures in the appeals process did not cure the constitutional defects in the code. Aesthetic standards are an appropriate component of land use governance but they must give clear guidance.

 

Term
Village of Belle Terre: facts
Definition
Belle Terre passes a zoning ordinance and restricts land use to one-family dwellings. It also defines what a family is: people related by blood, or two people not related by blood but not more than two. Ordinance limited land use to one-family dwellings. Family was supposed to be a proxy for density. A bunch of students live in the house and they challenge the ordinance along with the owner, precipitated by the fact that the town served the owners an order. City has to show that this is an exercise of police power/that it has the right to do this.
Term

J. Douglas' opinion in Belle Terre (and the holding)

 

Definition

 

The goals of the zoning ordinance are OK (promoting family values, youth values, clean air). Also OK to try to avoid urban problems (boarding houses, fraternity houses, more cars). These are legitimate guidelines – the idea of creating a family friendly place where there is open space. Police power is not confined to health issues. 

Term
J. Marshall's opinion in Belle Terre
Definition
Dissent: If you are going to zone for density, then zone for density. Family is not a close enough proxy. The mechanism that the city puts forward is not the best way to get the outcome they want: if they want fewer people, they should just limit 4 people per household. Ordinance violates equal protection rights and unnecessarily burdens P’s right to free association.  Ordinance both under-inclusive (regulates only unrelated home density) and over-inclusive (even if 3 unrelated people had only one income and no cars, would be banned)
Term
FU's sidenotes on Village of Belle Terre (hint: it's about Coasean bargaining)
Definition

 

In this case the city is coming in and replacing Coasean bargaining: with the five assumption hat on, everyone who wanted family values would live in Belle Terre and those who didn’t would live in the East Village and everyone would get what they want.

 

Term
Why couldn't Stoyanoff's reasoning work for Belle Terre?
Definition
The Stoyanoff zoning ordinances affecting architectural styles were upheld to protect property values (if the frog house was approved, the argument was that property values would go down, and there was a public interest in protecting property value). In Belle Terre, the property would have been MORE valuable without the zoning ordinance because the property was close to the university and student housing could bring in a lot of money. But instead, the zoning ordinance restricted the land use to their definition of "family."
Term
lower courts in Belle Terre
Definition
(Remember this is the ordinance that defines "family" for one-family dwellings.) District court said the ordinance was unconstitutional. Court of appeals reversed.
Term
Lower court in Stoyanoff
Definition
Zoning ordinances violated the Constitution of Missouri in that teh restrictions on use of property deprive the owners of their property w/o due process of law (remember this is the ultra modern house case that could not get a permit bc the City of Ladue only had traditional fancy houses)
Term
Lower court in Anderson vs. City of Issaquah
Definition
Lower court rejected constitutional challenge (Court of Appeals reversed) (remember this is the case about the guy who couldn't get his store built bc the architectural board kept him in a run-around and he had no idea how to satisfy them)
Term
What is the range of police power?
Definition
Power to promote public health, safety, morals, or the general welfare.
Term
Facts of Southern Burlington County NAACP v. Township of Mt. Laurel
Definition
Mt. Laurel grew and became part of the outer ring of the South Jersey metro area. Residential zones only permitted single-family detached dwellings: no townhouses, apartments, or mobile homes. In practice this meant that homes were only within reach of persons of at least middle income. The district also tried to say no school-age children and set up mechanisms to disincenticize developers from renting to them. Also required certain amenities to push rents and sales to high levels. Overall, no affordable housing. A non-profit tried to make some but the township said they had to comply w all zoning, which killed the project.
Term
Holding and reasoning in Southern Burlington County NAACP vs. Township of Mt. Laurel
Definition
Holding: Mt. Laurel’s zoning ordinance was outside the intended scope of zoning power and contrary to the general welfare. Mt. Laurel must make realistically possible the opportunity for an appropriate variety and choice of housing for all categories of people who may desire to live there. Reasoning: This was economic discrimination. Housing apartments are necessary bc they house people safely. Single family housing is better, but BOTH have to exist. Municipalities cannot choose to have only the better type of housing and put the less good kinds on others. Municipalities must zone primarily for the living welfare of people and not for the benefit of the local tax rate. (The zoning was to keep local taxes down on property – the fewer the children, the lower the tax rate. So they definitely don’t want multi-family houses: keep out those people not adding favorably to the tax base) But this means that there is no housing near the job sites zoned for, and that people have been forced to remain in housing which is overcrowded and less tax productive --> critical erosion of city’s tax base makes it hard to provide government services necessary. But those people need better housing and living conditions than it available to them now bc this zoning ordinance limited affordable houses.
Term
Court remedy in Southern Burlington County NAACP v. Township of Mt. Laurel
Definition
Remedy: Does NOT nullify entire zoning ordinance, but only declared invalid the particulars mentioned in the opinion. Not proper for the court to do more – municipality should have opportunity to first act without judicial supervision. “We trust it will do so in the spirit we have suggested, both by appropriate zoning amendments and whatever additional action encouraging the fulfillment of its faire share of the regional need for lower and moderate income housing.”
Term
FU's take on Mt Laurel
Definition

 


 

-       Zoning ordinances must consider general welfare of the state, and thus the “beggar thy neighbor” at the heart of zoning is illegal. Regional considerations, not just municipal considerations. Zoning power is a police power of the state and the local authority is acting only as a delegate of that power.

 

-       Zoning allows people to live in places without dealing with the externalities they don’t want to deal with. But is that a good way to run society? By pushing people out and putting the externalities on other municipalities?

 

-       That’s why we have state planning and even regional planning in addition to municipal zoning ordinances. From a practical perspective this makes sense but it erodes the sense of democratic involvement, which is what makes zoning attractive.

- We only consider regional needs bc that's what the soveriegn tells us to consider, so we don't need to do more

-       But this is NOT about justice, or else we’d be considering the people living in Bulgaria!

 

 

Term
Differences between Belle Terre and Mt. Laurel
Definition
remember: In Belle Terre, J. Douglas said that the zoning ordinance was witin police power, whereas in Mt. Laurel J. Hall said that the zoning ordinance could NOT create urban problems. Belle Terre is a SCOTUS case, and federal courts are a poor way to deal w allocating social burdens in society. Federal courts are also more open to expansive police power (see: public use in eminent domain). They are also cognizant of state rights. Mt. Laurel, on the other hand, was in the NJ Supreme Court. Another difference is that Belle Terre was a really small town (Mt. Laurel was much larger) so what would be their "fair share" of affordable housing - one person?
Term
Why would Marshall have struck down the zoning ordinance in Belle Terre?
Definition
Bc if they want to zone for density, they should place a number limit on how many people in a house - not just come up with a definition for family.Ordinance both under-inclusive (regulates only unrelated home density) and over-inclusive (even if 3 unrelated people had only one income and no cars, would be banned). He also gets into freedom of association arguments which I swear we did not focus on in class - LC
Term
Police Power
Definition
What state exercises when it uses eminent domain (can be directly for government use or can be acquired for ultimate occupation by private entity if it has some underlying public benefit)
Term

Where does police power come from?

Definition

The sovereign is the owner of the land.  The origin of property rights is from the government and their ability to take it back is inherent.  It is the Fifth Amendment that limits it by requiring that just compensation be paid.  

Term

Economic Rationale for Eminent Domain

Definition

Prevents high transaction costs for public projects that would result from holdouts.  (The road is only good if it can go through the whole city; one person refusing and demanding high amount could make whole project futile, so they get paid.)

Term

Brandeis describes police power

Definition

Acts to protect health, safety, or morals

Term

Holmes describes police power

Definition

Further the public interest, improving the public condition

Term

Just Compensation

Definition

What the state pays the owner of the taken property; what a willing buyer would pay a willing seller; fair market value.

Term

Upham's take on Just Compensation

Definition

In theory fair market value (FMV) is intended to compensate the party to the point that they are indifferent between keeping or selling. BUT if the owner's would be made whole by FMV then they woudn't be the owners of the property because if they were actually indifferent they would have sold it. There is subjective value that cannot be compensated for – just look at the Dery's. But FMV is really the only just measure because it is measurable and it does align with public expectations.

Term

Substantive due process limitation

Definition

Is what the government doing beyond their power?

Term

Procedural due process limitation

Definition

the courts protect those with limited powers against the overreach (but there are sometimes distortions in the process)

Term

If people anticipate that their property may be taken in ED, they may have an incentive to make changes to the property to increase the compensation. What can the government do?

Definition
In Taiwan the government requires every landowner to register the price that they would accept if their property was taken in ED. People will not give a very high value because that is the value at which they are taxed. (This may not correct for all anticipation because if you don't expect your property to be taken, you can undervalue and pay low taxes.)
Term

Berman v. Parker

Definition

Stands for expansion of police power to redevelop blighted lands. Berman’s department store was arguably not blighted and use would not be by government. But Ct held that the area was blighted and direct gov occupation is not required.

Term

Berman v. Parker

Upham’s Take

Definition

 It doesn’t matter what your individual property is, if the government can identify a harm it wants to address it can take your property to do that.

Term

Poletown

Definition

Detroit faces economic decline and government exercises eminent domain to build a new General Motors plant. Michigan Supreme Court upheld ED on grounds that the economic development and revitalization of the city qualified as public use.  

Term

Hawaii Housing Authority v. Midkiff

Facts

Definition

Government seeks to purchase the underlying estates of private landowners in Hawaii and then transfer the estate rights to the leaseholders. Goal is to address excessively high land prices by taking the land then selling it back to the lessees.

Term

Hawaii Housing Authority v. Midkiff

Holding
Definition
Policer power is coterminous with public use.  Redressing an adverse economic climate benefits the public and therefore a rational legislature could conclude that the program benefitted the public regardless of the private-to-private nature of transfer.  “Regulating oligopoly and the evils associated with it is a classic exercise of a State's police powers."
Term

Hawaii Housing Authority v. Midkiff

Upham’s Take
Definition
The court emphasizes that this is about the real estate market and about the economy, but those things should fix themselves.  This is really a social failure of excessive concentration of land and power, and the government wants to decentralize ownership.
Term

Kelo v. City of New London

Facts

Definition

New London wants to acquire houses occupied by plaintiffs, one of who has been there her whole life, for economic development that will largely be used by private entities including Pfizer.  

Term

Kelo v. City of New London

Holding
Definition
The property taken need not be itself blighted and the property condemned can pass from government to private hands.
Term

Kelo v. City of New London

Upham’s Take

Definition
This time it’s not about fixing something, there isn’t harm.  It’s about improvement and this defines public use very broadly.  It’s Justice O’Connor’s own words used against her in this holding.  If police power and public use are “coterminous” then what does the public use requirement of the Fifth Amendment even mean?
Term
What power is the state exercising when it uses the power of eminent domain?
Definition
Police power. This is supposed to be a boundary for the exercise of eminent domain but it's not very stringent. Nor is the requirement of a public use.
Term
What did Berman do for property law?
Definition
Paved the way for taking property for development in eminent domain. Broadens the concept of public welfare.(As long as you have a plan for redevelopment, you can take non blighted land - the dept store - in a blighted area and it's still a public use and valid exercise of eminent domain). Makes it easier for a municipality to take an entire swath of land through Eminent Domain and then hand it over to a developer to implement the city's plan. (better than the government taking a checkerboard) Court didn't care that the individual property was not blighted! Govt can still address the harm: blight.
Term
Why allow the state to take a citizen's property?
Definition
1) Maybe we aren't allowing the state to do anything: the power is an inherent part of soveriegn power. 2) E.D. helps avoid bilateral holdout problems: without E.D., TCs will be very high and the government might not be able to function. 3) To improve the public condition.
Term
What are the limits on the power of Eminent Domain?
Definition
1) within police power; 2) requirement of public use; 3) procedural due process requirements; 4) just compensation
Term
Problem: People who anticipate having their property taken have an icnentive to make inefficient investments to their property to inflate the amount they will be compensated. What is a solution?
Definition

Have every land owner register the price they would accept if their property was taken by E.D., and then landowners pay property taxes on whatever you say the property is worth. Doesn't work for people who think their property will never be taken so they give a very low price - and then the government might take it for that very low price!

 

Term
What is the NYS definition of public use?
Definition

Public use is anything that benefits health, safety, human welfare of the municipality or its citizens. Very Broad.

 

The removal of urban blight is a proper, and,

indeed, constitutionally sanctioned, predicate for the exercise

of the power of eminent domain. But the areas eligible for renewal are not limited to "slums": economic underdevelopment and stagnation are also threats to the public sufficient to make their removal cognizable as a public purpose. But it's not up to the courts to define those terms: it's a task for the legislature

Term
What did Loretto lose?
Definition
Nothing. The cable company just put a cable box on her apartment building. It did not diminish the property value: in fact, it increased it. But she was interested in rights.
Term
Total Wipeout
Definition
from Lucas. When the regulation totally wipes out the economic value of the property, it WILL be a taking UNLESS the prohibited use was a nuisance at CL. (So if you were already prohibited from the use at CL, and the regulation simply codified that prohibition, then it is not a taking, even if the regulation takes away ALL economic value of the land. Problem with this rule? Land is never really economically worthless.
Term

Permanent Physical Occupation Rule

Definition

A permanent physical occupation is a taking and will be compensated.

Term

Noxious Use Rule

Definition

If the regulation prohibits a noxious use it is not a taking and will not be compensated.

Term

Total Wipe-out Rule

Definition

 If the regulation removes all the value of the land it is a taking and will be compensated.

Term

Conceptual Severance

Definition

Determining the extent of the taking depends on how broadly or narrowly you construe the right.  If you can “severe” the rights of the estate by considering things like air rights, surface rights and subsurface rights, then you can find those parts are wholly taken. Court determines how to divide the interests the property owner may have.  

Term

Loretto v. Teleprompter Manhattan CATV Corp.

Facts

Definition
Cable company has installed wires and boxes on the apartment building facade and roof per a city ordinance.  Loretto challenges this as a taking.    
Term

Loretto v. Teleprompter Manhattan CATV Corp.

Lower court

Definition

Trial court granted summary judgment to cable company because the law regarding installation provides a community benefit.  Appellate court said that the regulation does not have an excessive economic impact and does not interfere with any reasonable investment backed expectations.

Term

Loretto v. Teleprompter Manhattan CATV Corp.

Holding 

Definition

A permanent physical occupation is categorically a taking and must be compensated.  This has deprived the landowner of the right to exclude others and prevents her actual use and possession of that space.  

Term

Loretto v. Teleprompter Manhattan CATV Corp.

Upham’s Take

Definition

 Loretto hasn’t lost anything, nothing has been taken.  There was also no diminution in value.  This was really about rights to prevent permanent physical occupation.  She didn’t expect or get high damages (only $1), but she did make a statement and create this category.  

Term

 

Hadacheck v. Sebastian

Facts

 

Definition

Pltf operates a brick yard with kiln on a lot that has a clay bed used as material.  City passed ordinance making the operation of brick kilns within the limits unlawful.  Pltf argues that this is a taking and he should be compensated.

Term

Hadacheck v. Sebastian

Lower court

Definition

The regulation is not a mere arbitrary invasion of private right and the evidence does support the contention that the business was detrimental to the interest of others and should be suppressed.

Term

Hadacheck v. Sebastian

Holding

Definition

 If the regulation is prohibiting a noxious use it is not a taking.  Nuisance control regulations are never compensable takings.  The clay can be transported elsewhere so the business is not fixed to this spot, and this area is now mostly residential and shouldn’t be exposed to the odors, fumes, dust, and so forth produced by the brick yard.  

Term

Hadacheck v. Sebastian

Upham’s Take

Definition

The neighbors get windfall -- buying property at a low price near the brickyard will be worth much more now because it will be used for residential purposes.  It may be more valuable for Hadacheck too, but if that were the case, he would have already sold it.

Term

Lucas v. South Carolina Coastal Council

Facts

Definition

Lucas purchased beachfront lots and two years later, a Coastal Zone Management Act prevented him from building on the coastal land in critical areas.  He sues for compensation, claiming this is a taking.

Term

Lucas v. South Carolina Coastal Council

Lower court

Definition

Finds that the property is rendered valueless based on the lawyers’ stipulations

Term

Lucas v. South Carolina Coastal Council

Holding

Definition

Where a government regulation renders an owner’s land valueless, it is a taking requiring compensation, unless the regulation relies on a background principle of nuisance law.  It is a taking unless it would have prohibited a use of land that would be a nuisance at common law (if it was noxious use then no compensation needed because you would be prohibited from this use anyway)

Term

Lucas v. South Carolina Coastal Council

Dissent
Definition
This is a strong, broad, and far-reaching categorical rule that did not need to be established to resolve this case.  This could have been more appropriately handled by the balancing test.  Also it is unlikely that there is a total wipeout here anyway.
Term

Lucas v. South Carolina Coastal Council

Upham’s Take

Definition

His land was not actually made worthless, this is an example of the lawyers messing up.  They stipulated that it was economically worthless without building on it.  It may not have been worth much without it but it would not be worthless.  Also, relying on the nuisance-at-common-law definition requires a balancing test, so this is hardly a bright line rule.  The total taking inquiry relies on a balancing test -- who is better to decide what the nuisance is, the courts or the legislature?  Why is Hadacheck’s brick kiln a nuisance but Lucas’s building on coastal land not?

Term
Why might the court have been wrong in the Margeno Cave case?
Definition
The court said that there was no AP bc possession was not open and notorious. But is this really true? You might say that once company puts up advertising of cave near Ross, he is on fair notice that the cave might be under his property. He might also be on notice when the cave company refuses to do a survey of the land. When possession is open and notorious, should the true owner's ACTUAL knowledge matter? The issue is really notice [to the community]. Then again, it might be that because the cave company denied the survey, that was unattractive behavior that the court wanted to punish.
Term
What makes bargaining hard (or undesirable) under the Coase theorem?
Definition
A bilateral monopoly: for example, a bilateral monopoly makes it difficult for the cave company to negotiate with Ross to purchase rights. (After Ross won the Adverse Possession case, the Coase argument goes that the Cave Company will try to buy rights from Ross - it's not like he wants the cave!) Also comes up in the water cases: holding against industry would not stop development in its tracts if the companies can buy rights from the downstream users. (like if Acton v. Blundell had gone the other way) But Bilateral monopolies can also generate a windfall for downstream owners (like in Evans v. Merriweather - Upstream owners will have to go down the stream to buy rights from all the downstream owners). Or in Sanderson, it would be really hard for the coal company to go and negotiate with every single riparian owner for right to mine and affect water rights. TCs are too high.
Term
What part of the court's reasoning in Wallis Cayton Bay v. Shell-Mex was wrong?
Definition
The court argued that the farmer's use of the land was not adverse to the garage company's use of the land (the garage company was just in a holding pattern). But FU thinks that if the farmer's use isn't adverse, what would be? Therefore the better rationale for the holding is that the farmer had implied permission (and thus was not adverse) to the garage company as shown by the letter offering to sell and acknowleding that the farmer was farming the land.
Term
What was the court's mistake in Blankenship v. Boyle?
Definition
The Court uses a CL fiduciary duty for a trust established by statute. The statute set up certain interested parties to be the trustees and it was set up to benefit a certain group of people: the tired and future emplyoees of unionized coal mines. This is clearly not a CL trust so the court should have looked at trust documents/statute.
Term
Where does the fiduciary duty come from?
Definition
It comes from laws and statutes, but the trust instrument itself can change and adapt the fiduciary duty (and thus also the relationship between the beneficiary and the trustee)
Term
Who enforces the fiduciary duty?
Definition
The beneficiary will ask the equitable court to enforce the duty against the trustee. (sometimes equity court is the same as teh regular court). The court looks @ the trust documents to see what the fiduciary duty consists of. They will enforce the duties in the instrumet, or any statutory duties.
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