PROPERTY LAW

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PROPERTY LAW
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WHAT THINGS DOES ALL PROPERTY HAVE IN COMMON?

• It is capable of being owned or possessed.
• Its owner enjoys certain rights.
• A bundle of rights.

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PROPERTYREAL
PERSONAL
TANGIBLE INTANGIBLE
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HOW IS PROPERTY ACQUIRED?

• By purchase
• By inheritance
• By accession
• By confusion
• By gift
• By being found

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By Accession

• To acquire title in the newly created asset with
  the following provisos
• (1) The identity of the original asset has merged
  with a new asset, which is significantly
  different from the original asset
• (2) the asset's value has increased significantly
  (so that it may be said that the majority portion
  of the property belongs to the party causing the
  change)
• (3) she is obliged to compensate the original
  owner with the value of the changed (original)
  asset.

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OCHOA v. ROGERS.234 S.W. 693 1921 Tex. App.
LEXIS 1042

• The car owner's car was stolen and later turned
  up as a pile of junk at a government auction. The
  purchaser bought the remains of the car for 85
  and expended another 800 to restore parts of
  the car to create a working delivery truck for
  his furniture moving business. The car owner
  recognized parts of the truck as his car and
  filed suit to recover possession, or the alleged
  value of 1000, and for the value of the use of
  the car at a rate of 5 per day from the time
  that the purchaser had purchased it from the
  government. The trial court ruled that the car
  owner was entitled to 85, and he appealed. The
  court affirmed. The court held that the purchaser
  was an innocent and unintentional possessor of
  the car, and in good faith improved and enhanced
  the value of what the car was in the state when
  he found it. Thus, according to the court, the
  property was merely an accessory to the resulting
  product of the delivery truck. The purchaser was
  liable only for the market value of the lost
  article at the time it was found.

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GIFT

• DONOR v. DONEE
• For gift to be effective
• Donative intent
• Delivery
• Donee must accept
• Gift causa mortis
• Intervivos gift

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FOUND PROPERTY

• Abandoned

• Lost or mislaid

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Ray v. Flower Hospital

• Karen was a receptionist at the hospital. She sat
  at the information desk, greeted people who
  entered the main lobby.
• There was a drawer for keeping lost found
  property at the desk. The drawer was locked.
• One evening, she noticed an eyeglass case on the
  top of the information desk.
• The case contained an opal ring with diamonds, a
  diamond ring, a ruby diamond ring, a diamond
  aquamarine ring, a topaz pin, gold earrings,
  diamond necklace with a ruby, gold cuff links, a
  gold coin.
• The hospital contacted the police, and placed an
  ad in the newspaper lost found column.
• No one claimed the jewelry
• Karen went to court asked the court to order
  the hospital do give her the property.

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Bailments

• A bailment is formed by the delivery of personal
  property, without transfer of title, by one
  person (Bailor) to another (Bailee), usually
  under an agreement for a particular purpose.
• The property must be returned by the Bailee to
  the Bailor, or a third party as directed by the
  Bailor, in the same or better condition.

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BAILMENTS

• BAILOR
• v.
• BAILEE

• EXPRESS
• Or
• IMPLIED

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ELEMENTS OF A BAILMENT

• Personal property
• Delivery of possession
• Bailee has exclusive control over the property
• Bailee knowingly accepts the property
• Duty to return the property

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Bailments Bailee Duty of Care
Bailment for Benefit of Bailor
Bailment for Benefit of Bailee
Mutual Benefit
High Duty of Care
Reasonable Care
Low Duty of Care
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TRAMMELL v. REINHARDT MOTORS, INC.

• Trammell sells used automobiles. One of his
  automobiles was damaged, so he took it to
  Reinhardt Motors, Inc., a body shop, for an
  estimate of the cost to repair the damage.
  Reinhardt was unable to provide an estimate by
  the close of business and requested to keep the
  car over the weekend and make the estimate the
  following Monday.
• Over the weekend, the car was stolen from
  Reinhardt, but later recovered. The car had been
  parked inside of a building that was locked. The
  keys were left in the car. The thief or thieves
  climbed a 10 foot-high fence that was topped with
  barbed wire, broke into the building through a
  window, started the car, broke locks off the door
  leading to the street, and escaped with the
  automobile. 
• Trammell sued Reinhardt for the damage done to
  the car by the thieves.

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• BAILEES RIGHTS
• Right to possession
• Right to use bailed property (sometimes)
• Right to compensation

• BAILEES DUTIES
• To use proper care in storing, holding, using, or
  transporting the property
• To return bailed property as directed by bailor

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BAILORS RIGHTS

• To have bailee exercise proper care
• To have bailee use only as provided in agreement
  or implied from circumstances
• To recover bailed property at end of bailment
• To have any services or repairs on property
  performed as contracted

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BAILORS DUTIES

• A duty to warn of defects. (Duty varies with type
  of bailment.)
• Warranty liability
• To pay compensation
• To not interfere with bailees possessory
  interest during term of bailment

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ALLEN v. HYATT REGENCY-NASHVILLE HOTEL

• Plaintiff parked his car in a garage owned and
  operated by the Hyatt Regency Hotel. There was a
  ticket machine at the entrance. The exit was
  staffed by an attendant who collected the fees.
  Plaintiff parked on the 4th floor, locked his
  car, and kept the key. When he returned several
  hours later, the car was gone.

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COLWELL v. METROPOLITAN AIRPORTS COMMISSION

• Plaintiff parked his camper in the airports
  automated parking lot, took his ticket and keys,
  and left on a trip. When he returned, he found
  that the camper had been stolen.

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• See Park N Go of Georgia, Inc. v. United Sates
  Fidelity Guaranty Company, 471 S.E.2d 500, 1996
  Ga. Lexis 357 (1996).

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Special Types of Bailments Common Carriers

• Common Carriers are strictly liable for damages
  except if the damages caused by
• An act of God.
• An act of the public enemy.
• An order of the public authority.
• An act of the shipper.
• The inherent nature of the goods.

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Special Bailments Warehouses and Innkeepers

• Warehouses
• Issue documents of title (warehouse receipts)
  subject to contractual negotiations. Owes duty of
  reasonable care.
• Cant exculpate, can limit.
• Innkeepers
• Owe duty of strict liability, modified by state
  statutes if innkeeper provides safe and notifies
  guests.
• If parking area provided and innkeeper accepts
  bailment, then may be liable.