blaw 49

conversion from real to personal property

A 'piece' of real property can become personal property if it is permanently detached from the real property. When trees, crops, oil or minerals are removed they become personal property.

bailment

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. Differs from sale or gift because property is transferred without passage of title.

fixtures

A fixture is personal property that becomes permanently affixed to real property. Role of Intent that it become a fixture is necessary. CASE 49.1 APL Limited v. Washington State, Department of Revenue (2010). The cranes were movable. How could they be fixtures?

abandoned property

Abandoned Property: Discarded by true owner with no intention of recovering. Acquires title against all the world, including the original owner. Trespassers: no title. Treasure Trove: Title against all world except true owner.

accession

Accession. Some value added to another's personal property by use of either labor or materials. With owner's consent. Without owner's consent

ordinary bailments

Bailment for the Sole Benefit of the Bailor (Gratuitous Bailment): Bailee owes Bailor a low duty of care, liable only for gross negligence. Bailment for the Sole Benefit of the Bailee: Bailee owes Bailor a high duty of care and is liable for even slight negligence. Mutual Benefit Bailment (most common): Each party owes the other a reasonable duty of care.

common carriers

Common Carriers. Publicly licensed to provide transportation services to general public. Common Carriers are strictly liable for damages, unless damages caused by: An act of God. An act of a public enemy. An order of a public authority Common Carriers (continued). Common Carriers are strictly liable unless damages caused by: An act of the shipper. The inherent nature of the goods. Not permitted to contract away their liability, but can limit dollar liability

confusion

Confusion. Commingling so that a person's personal property cannot be distinguished from another's. Fungible goods consists of identical particles such as oil or grain.

duties of bailor

Duties of the Bailor. Bailor's Duty to Reveal Defects. Mutual Benefit Bailment: bailor must notify bailee of all known defects and hidden defects the bailor knew about or could have discovered with reasonable inspection. Warranty Liability for Defective Goods

elements of a bailment

Elements of a Bailment: (1) personal property, (2) delivery of possession, and (3) agreement to return or dispose of property.

gift

Gifts: voluntary transfer of property ownership from Donor (owner) to Donee (recipient) for no consideration. Three elements: Donative Intent: based on circumstances, or relationship between the parties. Gifts (continued). Delivery—actual or "constructive" (symbolic, such as keys to car). Donor must give up complete control or dominion. Delivery by a 3rd party is OK. Gifts (continued). Acceptance. Gifts Intervivos and Gifts Causa Mortis. Intervivos: while the donor is living. Causa Mortis: while the donor is living but made with an expectation of imminent death. Gift is revocable if the donor lives.

innkeepers

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.

lost property

Lost Property: Involuntarily left. Property owner acquires title against whole world, except for true owner. Conversion of Lost Property: finder may be liable. Estray Statutes

mislaid property

Mislaid Property: Voluntarily placed somewhere, then inadvertently forgotten. Finder is caretaker for true owner.

elements of a bailment contd

Personal Property. (Tangible or Intangible--not persons or realty.) Delivery of Possession. Bailee given physical or constructive possession, and knowingly accept. Involuntary Bailments: bailee is responsible to safeguard property for true owner. Bailment Agreement. Bailments for less than a year do not require a writing under the Statute of Frauds. Agreement can be express or implied. Agreement provides for return of property to bailor, a third party or disposal by bailee.

acquiring personal property

Personal property can be acquired through: Possession. Production. Gift. Will or Inheritance. Accession. Confusion.

property

Property consists of legally protected rights and interests a person has in anything with an ascertainable value that is subject to ownership.

rights and duties of bailee

Rights of the Bailee. Right of Possession. Right to Use Bailed Property. Right to Compensation: gratuitous bailment, bailee's lien. Right to Limit Liability. Duties of the Bailee. Duty of Care. Duty to Return Bailed Property. Bailee may be liable for breach of contract, conversion and/or negligence. CASE 49.3 LaPlace v. Briere (2009). Why wasn't Briere liable for the horse's death?

trade fixtures

Trade Fixtures: installed for commercial purposes by a tenant. They remain the property of the tenant and can be removed when tenant leaves, repairing any damage caused by removal.

warehouse companies

Warehouse Companies. Can issue documents of title. Owe duty of reasonable care. Can't exculpate, can limit.

special types of bailments

common carriers, warehouse companies, innkeepers

real vs personal property

real; land and everything attached to it personal; both tangible and intangible Two types of property are generally subject to two different taxes. Two types of property are usually transferred differently (real estate requires formal writings called deeds).