Professional Documents
Culture Documents
Fall 2010 Outline 11-16-2010
Fall 2010 Outline 11-16-2010
A. INTRODUCTION
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P racked manure into heaps and accumulated it onto a public street intending to take it away the next
day.
Before he could do that, the D found the heaps or manure and hauled them off in his cart.
The manure belonged to the owners of the animals that dropped it but it had been abandoned.
Because of this, it belonged to the P who had changed its original condition and greatly enhanced its
value by his labor.
3. Acquisition by Capture
Actual bodily seizure is not necessary. Capture is not enough. Pursuit is required. If a wild animal has been mortally
wounded or trapped so that capture is virtually certain, the animal is treated as captured. If a person does not actually possess
the animal:
o Mortal wounding of animal by one who is not abandoning his pursuit my equal possession.
o Encompassing or securing the animal with nets or toils
o Must show intent to appropriate the beast or deprive the animal of its natural liberty
Pierson v. Post:
∏= Post Pursuit = Occupancy
∆= Pierson Pursuit ‡ Possession. Pursuit + _________= possession
Mere pursuit of an animal does not give one a legal right to it.
Based on Puffendorfs definition of occupancy of beasts. You have to have mortal damage to
animal and deprive animal of its natural ability. You have to show intent that you want the
animal in order for it to become yours. The law requires capture rather than pursuit.
a. Rationale- Policy bases
1. Competition
This ensures the beneficial use of resources because more wild animals are captured. Society does
not reward the pursuer, only the captor promoting a more effective means of capture.
2. Ease of administration
Rewarding capture is easier to administer than rewarding pursuit or prospect of capture, which is
difficult to determine. It promotes certainty and efficient administration.
b. Wounded or trapped animals
If an animal has been mortally wounded or trapped so that capture is virtually certain, the animal
is treated as captured. But if the animal is only in the process of being entrapped and is definitely
not captured.
c. Interference by non-competitor
Rule of capture allows a competitor who also seeks to capture an animal to interfere with the
others mere pursuit. However, a person who does not seek to capture an animal, but rather to
interfere with the other’s capture seeks to disrupt the efficient use of resources and must be
stopped.
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o Keeble v. Hickeringill:
Landowners are considered prior possessors (first possessors) of wild animals on
their land
Although the Plaintiff never had actual physical possession of the ducks, the
Plaintiff still had property rights in the ducks because they were on his property.
The Defendant maliciously interfered with the Plaintiff’s livelihood.
d. Custom
Although the general rule is that the captor must acquire physical control over the animal, in some hunting
trades, a custom, which is thought to be more effective, may dictate a different result.
o Ghen v. Rich:
Reasonable local usage gives title to the first taker of a whale who by acts
of appropriation.
The common law mandates that control is a necessary prerequisite to
someone being able to possess a wild animal. However, the instant case is
unique.
First, the Plaintiff did everything in his power to possess the animal.
Second, the widespread custom in the industry recognized this as the only
realistic form of possession.
e. Wild animals with animus revertendi (return of habit) a.k.a Domestic Animals.
o Captured wild animals that develop a habit of return continue to belong to the captor when they roam at
large. The reason behind this rule is that domesticated animals are valuable to society and this effort to
tame wild animals is rewarded.
C. ACQUISITION BY CREATION
A person can acquire property by creating. The primary purpose in recognizing property by creation is to reward labor.
I. Intellectual Property
o IP is the “catchall” label for property in ideas.
o The term includes copyrights, patents, and trademarks but may also cover property in a persona.
- To avoid monopoly and encourage competition, the law allows copying and imitation of ideas, as opposed
to their expression.
Cheney Brothers v. Doris Silk Corp:
The ∏ could not secure a copyright or a patent on its patterns and could not recover as a
result of the ∆’s copying.
Since there is no common law copyright law, the ∏’s property right is limited to chattels
that embody the invention, not the design pattern that has a short life.
Therefore, although the ∆ copied the ∏’s patterns the imitation is not actionable.
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The Plaintiff has no property right to prevent any imitation of it. The United States
Constitution (Constitution) confers only Congress the power to create this right, not the
court.
- There are exceptions like the right to publicity. A person may not use a celebrities name, likeness, voice or
signature for profit without the celebrities consent. The celebrity’s labor in creating a persona of value is
protected against another’s using it for profit.
Vanna White v. Samsung Electronics America, Inc:
It was held that, even though there is no intent to deceive, the use of an imitation (not a
likeness) of a celebrity for commercial profit infringes her right of publicity.
o Unfair competition
- Courts have sometimes protected labor and investment under the law of unfair competition.
International News Service v. Associated Press:
A property right can be found in an individual’s labor an investment, but that right can
only be held against a competitor, not the general public.
There is a quasi property interest in news collected by an agency against other news
collection agencies.
It is unfair competition when one party interferes with the normal operation of another’s
legitimate business precisely at the point where profit is to be reaped.
Information contained in news is in the public domain and therefore cannot be subject to
private ownership.
But when a news organization makes a substantial expenditure in obtaining the news,
they will be protected from having the information appropriated by a competitor.
II. Rights in Body Products
o Moore v. Regents of the University of California
- Supreme Court held that a man did not have a property right in his spleen following its removal from his
body by doctors who made it into a patented cell line of great commercial value.
- The Dr’s who created the cell line therefore created original ownership.
- The court held that the patient had only the right to sue the Dr’s for failure to disclose their research and
economic interest in the patient’s cells.
- Although most property is freely transferable, some property is not alienable and some property can be
given away but not sold.
Right to Exclude
o The right of property is described by William Blackstone as:
- That sole and despotic dominion which one man claims and exercises over the external things of the
world, in total exclusion to the right of any other individual in the universe.
o The right to exclude= the right to deny others from enjoying (use or possess) one’s assets. Without this right
other may simply take as they wish and the owner would be unable to stop them.
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- Jacques v. Steenberg Homes, Inc
A private landowner has the right to exclude other from his land. This right however has no
practical meaning if the State will not enforce it.
- State v. Shack
D sought to enter P’s property in order to administer medical and legal assistance to a laborer
Owner insister that visits must be conducted in the office
D’s reduced to leave and were charged with trespass
Court ruled that ownership rights in property do not include the right to bar migrant laborers
working on the property from access to governmental services
A man’s right in real property is not absolute. Necessity, private of public may justify entry upon
the lands of another
o The rights of property are not endless.
o The rights and reliance interests of others must be protected.
o Limitations to the right to exclude:
- Non-owners who have relied on a relationship with the owner that made such access possible in the
past may be granted partial or total immunity from having such access revoked when this is necessary to
achieve justice.
- Relations of mutual dependence involving joint efforts, and the relationship ends, property rights
must be redistributed among the parties to protect the legitimate interests of the more vulnerable persons.
- Property rights are redistributed to non-owners:
To protect the interests of the more vulnerable persons in reasonably relying on the continuation of
the relationship
To distribute resources earned by the more vulnerable party for contributions to joint efforts
To fulfill needs of the more vulnerable persons.
Rights to Include
o Right to include is the right to let others enjoy ones assets.
D. ACQUISITION BY FIND
An owner of property does not lose title by losing the property. The owner’s rights persist even though the article has been
lost or mislaid. A finder has rights superior to everyone but the true owner.
o Armory v. Delamirie
- Chimney Sweep finds a jewel and takes it to a jeweler to have it appraised
- The jeweler refused to give the jewel back to Chimney Sweep saying that the Chimney Sweep did not
own it.
- Chimney Sweep was entitled to recover from the jeweler either the jewel or the full money value of
the jewel.
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- The Chimney Sweep was the prior possessor, and therefore has the superior right.
1. Prior possessor
o Possession is eleven points in the law.
o The rule that a prior possessor wins over a subsequent possessor is an important and fundamental one. It
applies to both personal property and real property.
o Just like capture, there must be physical control of the property and the intent to assume dominion over
it.
2. Finder vs. Owner of Premises
The finders rule: A finder prevails as against all but the for true owner or prior possessors.
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P told D, the owner of the of the barbershop to hold on to it incase the owner came back
otherwise to advertise it. D agreed
Owner didn’t come back and P sued for the pocket book
Judge ruled that the P could not maintain his action.
The P did not acquire the right to take the property from the shop, but it was the duty of
the D to use reasonable care for the safe keeping of the same until the owner should call
for it
The P acquired no original right to the property, the D’s subsequent acts in receiving and
holding the property in the manner he did does not create any.
o Abandoned property
- Owner voluntarily and intentionally relinquished ownership with intent to give up both title and
possession.
o Treasure Trove
- Any money or coin, gold, silver plate or bullions hidden in the earth
E. ACQUISITION BY ADVERSE POSSESSION
o If, within the number of years specified in the state statute of limitations, the owner of land does not take legal
action to eject a possessor who claims adversely to the owner, the owner is thereafter barred from bringing an action in
ejectment.
o Acquiring title to property by long, uninterrupted possession.
o Running of the statute of limitation on the owner’s action in ejectment not only bars the owner’s claim to
possession, it also extinguishes the old title of the owner and creates a new title by operation of law in the adverse
possessor.
o Title acquired by adverse possession cannot be recorded because it does not arise from a recordable document
but rather from the operation of law.
o He must file a quiet title action against the former owner barred by the statute of limitations.
o Statutory period for adverse possession varies from state to state from five to twenty one years.
Requirements of Adverse Possession
Adverse possession formula
o A’Noche + Possession + Passage of Certain Amount of Time = Adverse Title
o A= Actual
- The primary purpose of the entry requirement is to trigger the cause of action, which starts the statute
of limitations running.
o N= Notorious
- His or her acts must be such that will constitute reasonable notice to the owner that she is claiming
dominion, so that the owner can defend his rights.
- The acts must be appropriate to the condition, size, and locality of the land.
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o O= Open
- Open acts are acts that look like typical acts of an owner of property that the community observing them
would infer the actor to be claiming ownership.
- Stealthy, secret or hidden activities do not satisfy the notorious and open requirement
Manilllo v. Gorski:
o D’s son made improvements to their house that encroached on P’s lot by
15inches. D stated that it was a mistaken belief that the property belonged to
them.
o Court ruled that a party may acquire land through adverse possession if that
party is a mistaken belief that she had title to the property.
o In order to constitute “open and notorious” possession, the true owner must have
actual knowledge of a minor encroachment along a common border.
o C= Continuous
- Continuous possession requires only the degree of occupancy and use the average owner would make of
the particular type of property.
- The purpose of the continuity requirement is to give the owner notice that the possessor is claiming
ownership, and that the entries are not just a series of trespasses.
Howard v. Kunto:
Use of a summer home only during the summer for the statutory period is continuous use
Similarly, seasonal use of a property is permitted when it is consistent with the type of
property involved.
The court stretched the definition of privity (shared rights and responsibilities that is
connected through possession of the property)
Kunto required privity for tacking.
- Privity means that the possessor voluntarily transferred his interest or physical possession to a subsequent
possessor
- Time runs against the true owner from the time when adverse possession began.
- The clock does not stop if the true owner transfers his interest.
- Tacking permits the later possessor to add years of possession to satisfy an adverse possession statute of
limitation. The possession must be uninterrupted and voluntary.
- Tacking has two views:
American rule- Requires privity between the possessor
English rule- Keeps the statute running against the true owner regardless of privity between
possessors
o H= Hostile/ Adverse
- There are three approaches regarding claimant’s state of mind:
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Objective test:
The adverse possessor’s subjective belief about who owns the property is irrelevant.
IF he uses the land as a reasonable owner would use it, without permission from the true
owner, this element is satisfied.
His conduct is deemed objectively hostile and adverse, regardless of his subjective intent.
Good Faith Test
The adverse possessor must believe that he owns the title to the land
Must innocently (but mistakenly) believe that the is the true owner.
Intentional Trespass Test
The adverse possessor must know that he does not actually own the land and subjectively
intend to take title from the true owner.
Effectively, this test rewards intentional wrongdoers while offering no protection to good
faith occupants.
Valkenburg v. Lutz:
o N.Y. statutes provide that if the claimant does not enter with color of title,
adverse possession can be claimed only where the land “has been protected by a
substantial in closure” or has been “usually cultivated or improved.”
o Hence, in N.Y, a person without color of title would have to show in that a
hunting cabin is a “usual improvement” and that taking sand and gravel was a
“usual cultivation” in order to win.
Color of title refers to a claim founded on a written instrument or a judgment or decree that is
for some reason defective and invalid
o E= Excusive
- Adverse possessor’s possession must not be shared with either the true owner or the general public.
- This doesn’t mean absolute exclusivity
- It means that the adverse possessor’s possession is as exclusive as one would characterize an owner’s
normal use of such land.
- To interrupt the adverse possessor’s exclusive possession, the owner must retake possession by
using the property in manner that suited to its condition.
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o Difference between adversely possessing land and adversely possessing chattels: Adverse possession of land is open
and notorious, whereas adverse possession of chattels seldom is. There are two approaches:
New York rule
o NY holds that the statute of limitations does not begin to run on the owner of stolen goods until the
owner knows who has the goods and makes a demand for return of the goods that is rejected.
o NY also puts the risk of buying stolen goods on purchases, who can often protect themselves by
making inquiries.
Due diligence rule
o The statute of limitations does not begin to run on the owner of stolen goods as long as the owner
continues to use due diligence in looking for them. The conduct of the owner, not the possessor, is
controlling.
o O’Keeffe v. Snyder
The COA accrues when the owner first knows, or reasonably should know through the
exercise of due diligence, where the stolen goods are including the identity of the possessor of
the paintings.
o The discovery rule has been adopted in most jurisdictions.
o In those jurisdictions, where it has been adopted, you must prove the elements of adverse possession
i.e. A’NOCHE
o Tacking is also applied to statutes of limitations in actions of replevin of chattels. Privity is required.
Bona fide purchaser of stolen goods
o A bona fide purchaser of stolen goods is not protected against the claim of the owner unless the statute
of limitations has run on the owner.
o The law protects the owner over the purchaser for three reasons:
Whether the purchaser was really bona fide, and did not know the goods were stolen, is
questionable in many cases
The purchaser can lessen the risk of buying stolen goods by inquiries of the seller
The owners were not protected, owners would spend more money on protective devices to
prevent theft, which is not a socially productive expenditure.
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2) Trespass on the case
This would occur where one of the elements of a trespass action was missing e.g., indirect or consequential
injury rather than an immediate injury.
3) Trover
A suit in trover was used to recover the value of the P’s chattel that the D had converted. Trover did not apply
to trespass to land.
G. Rights of owners
i. Right to use
ii. Right to transfer
iii. Right to Exclude subject to some restrictions e.g., zoning laws, mistaken improvement, civil rights
laws, etc.
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PERSONAL PROPERTY M.B.
ACQUISITION BY GIFT
A gift is a voluntary transfer of property without consideration. There must be (i) intent by the donor to
make a gift (ii) delivery to the donee; and (iii) acceptance of the chattel by the donee.
Two kinds of gifts:
Gift inter vivos
o This is a gift made during the donor’s life when there is no threat of impending death.
o It must be absolute and irrevocable to be valid.
o In order for an inter vivos to be valid, there must be intent on the part of the donor to make a
gift, delivery by the donor to the donee and acceptance of the gift by the donee.
o Acceptance by the donee will be presumed when the gift is of value to the donee.
Gift causa mortis
o This is a gift made in contemplation of immediately approaching death.
o Requirements for a gift are strictly enforced in gifts causa mortis.
o The gift is revoked if the donor recovers from the illness that prompts the gift.
I) Intent
The donor must intend to make a present, irrevocable gift, whether of a presently possessory interest of or a
future interest. If the alleged donor only in the future, the gift is an unenforceable promise because it is not
supported by consideration. In determining whether the alleged donor had the requisite intent to make a present gift,
a court will examine the donor’s verbal and written statements and the other circumstances surrounding the gift.
Promise compared
o A promise to give property in the future is not a gift. A gift transfers to the donee right now. A
gratuitous promise (i.e., a promise without consideration) is not enforceable as a gift or under
the law of contracts (because there was no consideration).
ii) Delivery
Delivery requires an act giving up dominion and passing control to the donee. Manual transfer usually satisfies the
requirement but it is not necessary.
CORRELATIVE CORRELATIVE
PRESENT FUTURE FUTURE
EXAMPLES DURATION
ESTATE INTEREST IN INTEREST IN
GRANTOR THIRD PARTY
o Example:
O conveys Blackacre “to the Board of Education so long as Blackacre is used to school
purposes.”
The Board of Education has a determinable fee
O has a Possibility of Reverter
O’s interest is not a reversion because O, owning a fee simple has conveyed a fee
simple determinable to the Board.
All fees simple (Absolute, determinable, subject to condition subsequent or executory
limitation) are of the same quantum.
c. Right of entry
o A right of entry is retained when the grantor creates an estate subject to condition subsequent
and retains the power to cut short the estate.
o Example:
O conveys Blackacre “to the Board of Education, but if the Board ceases to use
Blackacre for school purposes, O retains a “right to reenter.”
The Board has a fee simple subject to condition subsequent; O has a right of entry.
d. Correlative estate
o Possessory estates have correlative future interests in the grantor
Life estate- Reversion
Fee simple determinable- possibility of Reverter
Fee simple on condition subsequent- right of entry
4. Future Interests in Grantees
If a future interest is created in a grantee, it must be either a remainder or an executory interest.
a. Remainder
o A remainder is a future interest in a grantee that:
i. Has the capacity of becoming possessory at the expiration of the prior estates
ii. Cannot divest the prior estates
o Example:
o O conveys Blackacre “to A for life, and on A’s death, to B and her heirs.”
o A has a possessory life estate; B has a remainder in fee simple.
o B’s interest is a remainder because it can become possessory on A’s death,
and it will not divest A’s life estate prior to A’s death.
b. Executory interest
o An executory interest is a future interest in a grantee that, in order to become possessory, must
divest or cut short the prior estate, or spring out of the grantor at a future date.
o The basic difference between a remainder and an executory interest is that a remainder never
divests the prior estate, whereas an executory interest almost always does.
o Example- Shifting executory interest:
o O conveys Blackacre “to A and his heirs, but if B graduates from law school,
to B and her heirs.”
o A has a fee simple subject to executory limitation
o B has a shifting executory interest. B’s interest can become possessory only
by divesting A of the fee simple.
o A shifting interest is a useful device to shift title upon the happening of come
uncertain event.
o Example- Springing executory interest:
o O conveys Blackacre “to my daughter A when she marries B.” O retains the
fee simple and creates an executory interest in A to spring out of O in the
future when A marries B.
o A springing interest was, in early days, a useful device to give the groom
assurances that the bride would come to the altar endowed with property.
B. REVERSION
A reversion is a future interest left in the grantor after she conveys a lesser estate than she has.
The interest may be expressly retained or may arise by operation of law.
o Example 1:
O conveys Blackacre “to A for life, then to revert to O.”
Where it is not expressly retained, a reversion will arise by operation of law where no other
disposition is made of the property after expiration of the lesser estates.
o Example 2:
O conveys Whiteacre “to A for life.”
O has a reversion in fee simple by operation of law
Reversions are vested interests
All reversion are vested interests even though not all reversions will necessarily become
Possessory.
Some reversions will certainly become possessory:
o Example:
O conveys “to A for life, reversion to O.”
Other reversions may or may not become possessory:
o Example:
O conveys Blackacre “to A for life, remainder to B if B survives A.”
O has a reversion because, if B dies before A, Blackacre will return to O at A’s death.
If A dies before B, Blackacre will go to B at A’s death.
Note that O does not have a contingent reversion.
By common law dogma, all reversions are vested.
So O has a vested reversion, which can be divested by B’s interest becoming possessory to
A’s death.
1. Significance
o The significance of a reversion being vested is that it is alienable, accelerates into possession upon
the termination of the preceding estate, and is not subject to the Rule against perpetuities.
2. Alienability
o A reversion has always been regarded as fully transferable both inter vivos and by way of testate or
interstate succession.
o The transferee, of course, gets only what the transferor had- an interest that cannot become
possessory until the preceding estate terminates.
3. Distinguish- Possibility of Reverter
o A possibility of Reverter arises where the grantor carves out of his estate a determinable estate of
the same quantum.
o Most often it arises where the grantor conveys a fee simple determinable.
o A reversion arises where the grantor conveys a lesser estate than he has and does not in the same
conveyance create a vested remainder in fee simple.
o There is no such interest as a “possibility of reversion”.
C. POSSIBILITY OF REVERTER
A possibility of Reverter is a future interest remaining in the grantor when a fee simple
Determinable is created.
o Example:
O conveys Blackacre “to A and his heirs so long as liquor is not sold on the premises.”
A has a determinable fee; O has a possibility of reverter.
A possibility of reverter cannot be created in a grantee. The analogous future interest created in a grantee is called
an executory interest.
1. Alienability
At common law:
o A possibility of reverter was not viewed as an existing interest, but rather as a mere possibility of
becoming an interest.
o On the death of the owner of a possibility of reverter the possibility of reverter was treated as a
thing; it descended to the owners heirs.
At modern law:
o A possibility of reverter is freely alienable, both during life and by will.
Rationale: The possibility of reverter is now viewed as a property interest, and
alienability is an inherent characteristic of any property interest.
D. RIGHT OF ENTRY
When a grantor creates an estate subject to condition subsequent and retains the power to cut short terminate the estate, the
grantor has a right of entry. Like a possibility of reverter, a right of entry cannot be created in a grantee. The right of entry is
sometimes called “a power of termination”.
o Example:
O conveys Blackacre “to A and his heirs, but if intoxicating liquor is ever sold on the premises,
O has a right to reenter and retake Blackacre.”
A has a fee simple subject to condition subsequent; O has a right of entry for breach of the
condition subsequent.
1. Alienability
At common law:
o The right of entry was inalienable inter vivos because it was treated as a chose in action, and choses were
inalienable.
o It was not thought of as a property interest, but rather as a special right in the grantor to forfeit the
grantee’s estate if he wished.
o A right of entry could be released, however, to the owner of the fee simple, and it was inheritable by the
heirs of the grantor.
At modern law:
o In some states, the right of entry is now alienable; in others, the common law is followed.
o In a few states, the mere attempt to transfer a right of entry destroys it.
o Example:
O conveys Blackacre “to Railroad company, but if it fails to maintain an overpass, O has
the right to reenter and retake Blackacre.”
Subsequently, O conveys the right of entry to his son.
In the harsher states, this attempt to convey the right destroys it, and the railroad has a fee
simple absolute.
2. Termination
At common law:
o A right of entry or a possibility of reverter could endure indefinitely, and because it was inheritable, the
grantor’s heirs could exercise the right of entry or enforce the possibility of reverter hundreds of years after
the grantor’s death.
o These interests are not subject to the Rule against perpetuities, which generally prevented the creation of
future interests to become possessory far in the future.
At modern law:
o This remains the law in the large majority of states.
o In some states, however, statutes have been enacted expressly limiting the period during which a possibility
of reverter or right of entry can exist.
o The typical statute limits them to 30 years, after which the preceding fee simple becomes absolute
o Some states have made the termination statute retroactive, applying it to existing possibilities of reverter and
rights of entry.
o But courts are divided on whether retroactive application is unconstitutional as a taking of property without
compensation.
FUTURE INTEREST IN GRANTOR
CORRELATIVE
FUTURE PRESENT RIGHTS OF
INTEREST INTEREST EXAMPLE GRANTOR ALIENABILITY
Estate
automatically
reverts to grantor Transferable,
on life tenants descendible and
REVERSION Life Estate "To A for life" death devisable.
Estate
automatically
"To A so long as reverts to grantor
alcohol is not upon the Transferable,
POSSIBILITY Fee Simple used on the occurrence of the descendible and
OF REVERTER Determinable premises" stated event devisable.
There can be no remainder after a fee simple. Any interest divesting or following a fee simple must be
an executory interest, not a remainder. This applies to all types of fee simple including fee simple
determinable.
3. Estates in Remainder
An estate in remainder may be a fee simple, a life estate, a term of years, or, in those jurisdictions
where such an estate is permitted, a fee tail.
o Example:
O conveys “to A for life, then to B for 10years, then to C for life, then to D.”
B has a remainder for a term of years, C has a remainder for life, and D has a remainder in fee
simple
4. Classification of Remainders
o Remainders are classified either as “vested” or “contingent”.
o A vested remainder is a remainder that is both created in an ascertained person and is not subject to any condition
precedent.
o A contingent remainder is a remainder that is either created in an unascertained person or subject to a condition
precedent.
Always classify the interests in order:
o Example:
O conveys “to A for life, then to B and his heirs if B survives each interest in sequence.”
A gets a life estate
B has a remainder (because it is capable of becoming possessory on termination of the life
estate and will not cut the life estate short) It is a remainder in fee simple.
It is a contingent remainder because it is subject to the express condition precedent, if B
survives A.
“If B does not survive A, to B’s children and their heirs”- the interest is a remainder because it
is capable of becoming possessory on termination of the life estate and cannot cut the life estate
short. It is a remainder to a class, B’s children, in fee simple. It is a contingent remainder
because it is subject to the express condition precedent, “ and if B does not survive A.”
a. Sub classification of vested remainders
A remainder created in an ascertained person and not subject to a condition precedent.
Example: “To A for life, then to B in fee simple” creates a vested remainder in B.
1. Indefeasibly vested remainder
The holder of this interest is certain to acquire possession in the future and will be entitled to
permanently retain the estate.
o Example:
O conveys “to A for life, then to B and her heirs”
B takes possession on A’s death
If B dies before A, B’s heirs or devisees are entitled to possession
Therefore, B’s remainder is indefeasibly vested.
If B dies intestate and without heirs during A’s life, B’s remainder escheats to the state. At A’s
death, the state takes the property.
2. Vested remainder subject to open
The remainder is vested in a class of persons, at least one of whom is qualified to take possession, but
the class members’ shares are not yet fixed because more persons can subsequently become members
of the class. (A class is closed if others can no longer enter the class).
o Example:
O conveys “to A for life then to A’s children.”
If A has no children, the remainder is contingent because no person qualifies as a child.
If A has a child, B, the remainder is vested in B subject to “open up” and let in other children.
B’s remainder is sometimes called “vested subject to partial divestment”.
Once the remainder has vested in B, the interests of the unborn children are called executory interest
because they may partially divest B.
o Class Gifts: A gift to a group of persons described as a class, e.g., “children of A”, “brothers and sisters of A”
or “heirs of A”.
o A class is either open or closed.
It is open if it is possible for other persons to enter the class.
It is closed if it is not possible for others to enter the class.
3. Vested subject to divestment
This is a remainder that can be completely divested by a condition subsequent or by an inherent
limitation of the remainder estate. A remainder can be both vested subject to open and vested subject
to complete divestment (e.g., “to A for life, then to the children of A, but if no child survives A, to B.”)
4. Alienability
A vested remainder is alienable inter vivos and devisable by will. It descends to heirs if not otherwise
disposed of. However, it can be limited so as to be divested at death.
b. Contingent remainders
A remainder is contingent if given to an unascertained person or subject to a condition precedent.
1) Remainders in unascertained persons
A remainder in an “unascertained” person means the person is not yet born or cannot be determined until the happening of an
event. Such a remainder is contingent.
o Example- unborn children:
O conveys “to A for life, then to A’s children.”
A has no children.
The remainder is contingent because the takers are not ascertained at the time of the conveyance.
If a child is born, the remainder vests in that child subject to open and let in other children born
later.
o Example- Heirs:
O conveys “to A for life, then to B’s heirs.”
B is alive.
“Heirs” are persons who succeed to B’s property if B dies intestate.
Because no one is an heir of the living (but only an heir apparent), the takers are not ascertained;
therefore, the remainder is contingent.
B’s heirs will be ascertained only at his death.
If B dies during A’s life, the remainder will vest in B’s heirs at B’s death.
o Reversion
In each of the two examples, there is a reversion to O.
Whenever O creates a contingent remainder in fee simple, there is a reversion in O.
Whenever O creates a vested remainder in fee simple, there is never a reversion in fee simple in O.
2) Remainders subject to condition precedent
A remainder subject to a condition precedent is a contingent remainder. A condition precedent is an
express condition set forth in the instrument, which must occur before the remainder becomes
possessory.
What is a condition precedent?
o A condition precedent is a condition expressly stated in the instrument.
o Example:
O conveys “to A for life, then to B if B marries C.”
B has a subject remainder subject to an express condition precedent.
The condition precedent is marrying C.
It B marries C during A’s life, the remainder vests indefeasibly in B.
What isn’t a condition precedent?
o The termination of a condition preceding is not a condition precedent.
o The language that merely refers to the termination of the preceding estate is surplusage and does not
create a condition precedent.
o Example:
O conveys “to A for life, and on A’s death, to B”
The words “on A’s death” merely refers to the natural termination of the life estate and do not
state a condition precedent
o A remainder subject to condition precedent other than survivorship is not also subject to an implied
condition precedent of survivorship.
o Example:
O conveys “to A for life, then to A’s issue, and if A dies without issue, to B”
B’s remainder is contingent on A’s dying without issue.
It is not contingent on B’s surviving A.
Thus, if B dies before A, B’s remainder passes to B’s heirs or devisees, and if A subsequently
dies without issue, B’s heirs or devisees take the property.
F. EXECUTORY INTERESTS
o Springing executory interest
A springing executory interest is a future interest in a grantee that springs out of the grantor at a date
subsequent to the granting of the interest, divesting the grantor.
Example:
O conveys “to A and her heirs if A quits smoking.”
A has a springing executory interest
It will divest the fee simple of O, the transferor if it becomes possessory
Example:
O conveys “to A for 100 years if A so long live, then to A’s heirs.”
The attempted contingent future freehold in A’s heirs was void at law prior to the statute of
uses because it was impossible to transfer seisin either to A or to A’s heirs (unascertained).
After the statute, the limitation to A’s heirs was given effect as a springing interest.
A springing executory interest springing out of the grantor (e.g., there is no preceding estate), and a
shifting executory interest shifts the estate from one grantee to another.
An executory interest is always either springing or shifting interest- except in the case of a future interest
in a grantee following a fee simple determinable. This executory interest is neither springing nor shifting
because the fee simple determinable ends by its own special limitation. The executory interest does not
divest it but rather succeeds it.
REVERSION IN
FUTURE
EXAMPLE GRANTOR FOLLOWING TRANSFERABLE?
INTEREST
FUTURE INTEREST?
INDEFEASIBLY
REMAINDER "To A for life, then to B" become possessory during life and at death
REMAINDER A has a child, B. B has a vested No; A's children are certain Yes; B's remainder transferable
SUBJECT TO remainder subject to divestment by No; no possibility of property during life but not transferable at
"To A for life, then to A's children transferable during life, but is
Yes
who survive A." A has a child, B. not transferable to B's death if B
predeceases A.
"To A for life, then to B's heirs." B No; no one is heir of B until B
Yes
is alive. dies
EXECUTORY "To A for life, then to B, but if b No transferable during life and C's
NOTE: In a few states, contingent remainders and executory interest are not transferable during life except in certain
circumstances.
G. RULES RESTRICTING CONTINGENT REMAINDERS (MOSTLY ABOLISHED)
There are three rules restricting remainders:
i. The destructibility rule
ii. The Rule in Shelley’s case
iii. The doctrine of Worthier Title
1) Destructibility of Contingent Remainders
This common law rule, still in effect in a few states, states that a contingent remainder in land is
destroyed if it does not vest before or at the time the preceding freehold estate ends. Thus, in a
conveyance “to A for life, remainder to A’s children which reach 21,” the remainder is destroyed if no child
of A has reached 21 at A’s death. The preceding estate can be a fee tail or a life estate.
RULE vested at time of remainder in A's heirs, the interst in the grantors heirs is
If A has no children
grantor.
Generally treated as rule of
country to testamentary
grants.
Property reverts to
grantor; A's children A has a life estate and A's Grantor's heirs have a future
MODERN
have indestructible heirs have a contingent interest given to them under
RESULT
contingent remainder or remainder the instrument.
an executory interest
H. THE RULE AGAINST PERPETUITIES
The rule against perpetuities was developed to destroy all contingent future interests, including executory interests
(which are indestructible).
No interest is good unless it must vest, if at all, not later than 21 years after some life in being at the creation of the
interest.
Reason for period:
o A parent could realistically and perharps wisely assess the capabilities of living members of the members of
the family.
Interests subject to the rule
o The rule applies to contingent remainders and executory interests.
o It does not apply to vested interests (vested remainder, reversion, possibility of reverter, and right of entry)
o Example:
O conveys “to A for life, then to A’s children for their lives, then to B and his heirs.”
A has no children.
The conveyance is entirely valid.
The remainder for life given to A’s children will best if at all, at A’s death.
The remainder in fee simple in B is a vested remainder when created.
What might happen test:
o If there is any possibility that a contingent interest will vest too remotely, the interest is void. Courts do not
wait to see what actually happens, but look at the interest at the time of creation.
o Example:
O conveys “to the first child of A who becomes a lawyer”
A has a daughter D in law school.
The gift is void.
It is possible for the first child of A who becomes a lawyer to be a child not alive at the time of the
conveyance.
Reason it doesn’t work:
D may die before becoming a lawyer.
Then A, bereft at D’s death and desiring a lawyer in the family, procreates another child-
Hope- born two years later.
The following year, A dies.
Some 25years later, Hope becomes a lawyer and claims the gift- but this is more than 21
years after the deaths of A and D (the only relevant lives). Therefore, the gift is void.
Lives in being
o Any person who can affect the vesting of the interest and who is alive at the creation of the interest can be
a validating life, provided the claimant can prove the interest will vest or fail within 21years of the persons
death.
o When lives in being is determined
Generally, the validating life must be a person alive at the creation of the contingent interest.
A child in womb
When the interest is created is treated as a life in being if the child is later born alive. Any
gestation periods are included within the permissible perpetuities period.
Validating life
Example 1:
o “To A when A marries” or “to A’s children,”
o The validating life is A because the contingency (marries or birth of child) must
happen, if at all, within A’s life.
Example 2:
o “To A’s children who reach 21”
o A is the validating life. Every child of A must necessarily reach 21 within 21 years
of A’s death plus a period of gestation. Therefore, the gift will vest, if at all,
within 21 years after A’s death.
No validating life (void gift)
Example:
o T conveys “To A for life, then to A’s children who reach 25.” A has no children at
T’s death.
o The remainder is void because you cannot prove it will necessarily vest or fail
within 21 years of A’s death.
Validating lives
Example:
o Professor Jones gives $1,000 to be divided among all members of her property
class who has admitted to the bar.
o The gift is good.
o The members of the property class are the validating life..
o The gift must vest or fail within the lives of the members of the property class.
o It will be known by the last survivor or maybe sooner- which members of the
class are admitted to the bar.
o Meaning of “vest”:
The rule does not apply to vested interests.
Class gifts
Do not vest in any member of the class until the interests of all members have vested.
Therefore, if the gift to one member of the class might vest too remotely, the whole class
gift is void (all-or-nothing rule).
Executory interest
An executory interest following a fee simple determinable or divesting a fee simple cannot
vest in interest before it vests in possession.
An executory interest following a determinable fee or divesting a fee simple only when the
condition happens and it becomes a possessory estate.
o Remote possibilities
An interest is void under the Rule Against Perpetuities if by any possibility- however remote- the
interest might vest beyond the perpetuities period.
If a situation can be imagined in which the interest might not vest or fail within the relevant lives in
being plus 21 years, the interest is void.
The fertile octogenarian
o The law conclusively presumes that a person can have children as long as the
person is alive.
o Evidence that a person is 80 years of age or have had a hysterectomy or
vasectomy is irrelevant.
The unborn widow
o The law assumes that a persons surviving spouse might turn out to be a person not
now alive.
o Example:
A mans present wide may die or be divorced, and the man may in the
future marry a woman not now alive. This leads to the assumption leads
to the unborn widow case.
Application to Defeasible Fees
o The rule against perpetuities does not apply to possibilities of reverter and rights of entry, which are regarded
as vested interests, but it does not apply to executory interests,
Fee Simple Determinable
A possibility of reverter is exempt from the rule.
An executory interest is subject to it.
Any executory interest following a fee simple determinable that violates the rule against
perpetuities is struck out, as with a blue pencil, leaving the fee simple determinable
standing.
Example:
o O conveys Blackacre “to the School Board so long as used for school purposes,
and if the land shall cease to be used for school purposes, to A and his heirs.”
o A’s executory interest, if valid, would be transmissible to A’s heirs, and their
heirs, and so on through time.
o It might not become possessory for centuries. Therefore, A’s executory interest is
void.
o Board has a fee simple determinable, which will automatically end when the land
ceases to be used for school purposes; O has a possibility of reverter.
Fee Simple Subject to an Executory Limitation
Example:
o O conveys Blackacre “to the School Board, but if Blackacre shall cease to be used
for school purposes, to A and his heirs.”
o The executory interest in A is void under the RAP for the same reason A’s
executory interest in the preceding example is void.
Fee Simple Determinable Created by Will
A possibility of reverter is an interest retained by the grantor if the fee simple determinable
is created by a deed; the testator’s heirs retain it if the fee simple determinable is created by
a will.
A possibility of reverter cannot be created in a grantee- nor in a devisee.
If the testator creates a fee simple determinable by will, followed by a void executory
interest in a devisee, the testator’s heirs have a possibility of reverter.
Example:
o T devises Blackacre “to a Baptist Church so long as used for church purposes,
then to A. All the rest and remainder of my property I devise to B.”
o A’s executory interest violates the RAP and is struck out, leaving a determinable
fee in the church.
o T’s heirs- and not B- have a possibility of reverter.
o If B, the residuary devisee, were given the future interest after the determinable
fee, B’s interest as a residuary devisee would be an executory interest, and B’s
interest would be void.
"To A for life, then to A's children for life, then Invalid A may have a child after the interest is created
and so may have grandchildren beyond the
to A's grandchildren." perpetuities period.
" To School Board so long as it is used for a
school, then to the Red Cross." Valid This falls within the charity-to-charity exception
The interest may vest in A's heirs or devisees
"To school Board so long as it is used for a hundreds of years from now. (A's interest is
school, then to A" Invalid stricken.)
"To B for life, remainder to those of B's siblings
who reach age 21." Valid B's parents can be used as measuring lives
B may have a child born after the disposition
"To B for life, then to such of B's children who who becomes a lawyer more than 21 years after
become lawyers" Invalid B's death.
"To A for life, then to his wife W, for life, then No unborn widow problems because the gift is to
to A's surviving children." Valid W, life in being,"
"To A for life, then to his widow for life, then to
A's surviving descendants." Invalid Unborn widow problem.
"To X for life, then to Y, but if at her death Y is
not survived by children, then to Z." Valid Y is the measuring life.
"To M for life, then to M's children for their
lives, then to M's grandchildren." M is 80 years
old and has had a hysterectomy. Invalid Fertile octogenarian problem.
"Trust income to Polo Club. At the death of A,
B, C, D and E (all born today at Obie Hospital),
the corpus to Z and his heirs." Valid A, B, C, D, and E are measuring lives.
The residue of my estate to my descendants who Administrative contingency- the slothful
are living when my estate is distributed." Invalid executor problem.
SUBJECT TO
CORRELATIVE
FUTURE INTEREST EXAMPLE RULE AGAINST
PRESENT INTEREST
PERPETUITIES
REVERSION
"To A for life." term of years No
GRANTOR POSSIBILITY OF "To A so long as liquor is not Fee Simple
REVERTER sold on the premises." Determinable No
"To A, but if liquor is sold on the
RIGHT OF
premises, O has a right to Fee Simple Subject to
ENTRY
reenter." Condition Subsequent No
INDEFEASIBLY
VESTED Fee tail, Life estate,
REMAINDER "To A for life, then to B" term of years No
VESTED
REMAINDER Yes- As long
SUBJECT TO "To A for life, then to A's Fee tail, Life estate, as the class
OPEN children." A has a child X. term of years remains open.
VESTED "To A for life, then to B, but if B
IN GRANTEE
CONTINGENT
"To A for life, then to A's Fee tail, Life Estate,
REMAINDER
surviving children." Term of Years. Yes
SPRINGING Fee Simple, Fee tail,
EXECUTORY "To A when she passes the bar Life Estate, Term of
INTEREST exam." Years. Yes
SHIFTING "To A for life, then to B, but if N Fee Simple, Fee tail,
EXECUTORY predeceases A, to C." (C has a Life Estate, Term of
INTEREST shifting executory interest) Years. Yes.