Property Outline – Professor Kieff Property Law Theory



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Real Covenant Theory

  1. At law (damages action), for the burden of a promise to run, one had to establish:

    • intent for the burden to run (by language or inferable by context)

    • horizontal privity (traditionally landlord-tenant rel’ship, later expanded)

    • vertical privity- successor in int’st to person who covenanted for burden must hold entire durational interest held by the covenator at time covenant was made

      • if landlord-tenant rel’ship, would be present in assignments, but not in sub-leases

    • touch and concern- covenant must “touch and concern the land”

  2. At law, for the benefit of a promise to run, there are fewer requirements (b/c more incentive for owner/seller to advertise benefits):

    • intent for the benefit to run

    • vertical privity- the successor need only succeed to some estate (doesn’t have to be an estate of the same duration as the covenator’s)

    • touch and concern

  • Equitable Servitude Theory

    1. Req.s for burden of a promise to run at equity (granting of specific performance):

      • intent

      • notice- if notice not in deed, actual or inquiry notice must be present

        • inquiry notice- furnished by facts that would make a reasonable person inquire further and find the covenant; may be satisfied by constructive notice (i.e. recordation)

      • touch and concen

    2. for benefit of a promise to run at equity:

      • intent

      • touch and concern

  • The 3rd Restatement

    1. not adopted by any court; relaxes req.s; abolishes “touch and concern” doctrine and the privity requirements; baseline grounded in contract and party intent

    2. gives servitudes a contractarian flavor w/writing req.s and exceptions for violations of public policy, unconscionability, etc.

  • Eagle Enterprises, Inc. v. Gross- appellant wants fee specified in covenant for supply of water, but resp. has obtained water elsewhere; Held- covenant is not a core essential to property, doesn’t “touch/concern” land; effect- changed circumstances, unenforceable

    1. court concerned about dead hand control

  • Notice and the Common Plan- must have notice for a covenant to run at equity

    1. Sanborn v.McLean- Δs want to build gas station in a common development; covenant not in McLean’s chain of title; Held- reciprocal negative easement enforced; there is inquiry notice and constructive notice of the original restriction

  • Conservation easements- servitudes that restrict future development of land

  • Termination of Covenants

    1. Bolotin v. Rindge- common development w/restriction against commercial use; Held- enforceable; subjective considerations essential (personhood); no proof restrictions will no longer benefit Δs; no changed circumstances

      • changed circumstances doctrine- even if we have good intentions in structuring the arrangement for the future, things could change, don’t want to be too bound

      • drafting w/o relying on CC? sunset provisions, draft states intent

    2. Abandonment of a covenant

      • Peckham v. Milroy- home daycare in neighborhood claims covenant unenforceable; abandonment must be habitual and substantial; Held- covenant enforceable, no unreas. delay (laches arg.); no estoppel (Peckam objected at beginning); no abandonment of covenant – few instances not enough

  • Zoning

    1. Zoning- regulation of land uses through a general regime permitting and forbidding particular uses of land in certain locations; state and local law; number of varieties (1 is Euclidean)

    2. Euclid v. Ambler- Euclidian zoning scheme (cumulative- one zone can use this type, as can those below it); zoning prohibited Ambler from industrial construction; Ambler- due process issue (no rational basis); Held- upholds zoning, there is rational basis (safety, cleanliness)

      1. problems w/zoning: requires faith in gov’t actors; sticky, slow to change; fixed set of rules so no coasian bargaining

    3. Southern Burlington v. Mt. Laurel- Πs challenge Mt. Laurel zoning ordinance asserting it excludes low/moderate income persons from obtaining housing; Held- Πs must show lack of housing and municipality must show substantive valid reason for it; zoning upheld

      1. Rule: Zoning must promote the general welfare, and cannot be motivated by other considerations (i.e. taxing reasons)

  • Government Forbearance – the extent that gov’t should forbear from interfering w/or frustrating previously recognized property rights

    1. Charles River Bridge v. Warren Bridge- Mass. has another bridge built near Charles River Bridge (CRV); CRV mad b/c their charter is still running; Held- charter didn’t grant exclusive rights, and can’t read it in; don’t want preemptive force w/initial allocations, new needs arise (creative destruction), destroy old, build new

      1. downside- disincentive for investment b/c ppl lose their property, less likely to maintain it

      2. alternative- treat it as a taking and have the gov’t pay just compensation for loss of bridge

    2. Due Process- claims require a threshold showing of a liberty hit or a property hit

      1. Board of Regents v. Roth- prof fired for making anti-war statement; issue- is professorship property, and ok to take away w/out process? Held- no due process problem; due process involves liberty and property, and professorship not clearly related enough to those rights

      2. Town of Castle Rock v. Gonzales- woman has restraining order, husband violates, takes kids, police don’t respond for a long time, shootout, kids die; Held- no due process created in restraining order; discretion given to gov’t to under-enforce (want to avoid suits against PDs)

    3. Other Limits on Gov’t Action

      1. vested rights: presumption against retroactive decision-making

        1. many Const. clauses read as limiting retroactivity, but none, standing alone, establishes a broad, anti-retroactivity rule

        2. presumption of prospectivity; if gov’t statement is clear in asserting retroactivity, then ok

      2. stare decisis- what has been decided, stays decided; particularly relevant in contract and property settings

      3. also: government contracts, takings, and treaties

  • Takings

    1. Eminent Domain

      1. gov’t may to compel a transfer of property rights in return for payment of just compensation

      2. constitutional requirements: must be a “public use”, property owner paid “just compensation”

      3. Public Use Requirement

        1. actual use by public (some state courts) or public advantage benefit (Sup. Ct.’s view – any project w/some public interest rationale)

        2. Kelo v. New London- New London approved development plan by private co., used eminent domain to acquire properties in a “blighted” area; issue: plan for taking qualify as “public use”? Held- taking okay, limit- there must be some kind of social benefit

          1. problems: home’s personhood value to Kelo; impact on disenfranchised minorities; poss. purposeful targeting or reckless disregard (invidious intent/impact); favoring of a co., political payoff; slippery slope of wealth transfer (O’Connor- dissent)

          2. resulted in popular constutionalism/ repudiation of Kelo, public backlash; O’Connor’s dissent better guide for future scope of eminent domain

      4. Just Compensation – Valuation

        1. United States v. Miller- gov’t orig. took land for reservoir; later taking to build highway around reservoir; issue: at what point to measure fair market value? options: at time of taking (incorp. value added by reservoir) or earlier value (before reserv.); General rule: evaluate value at time of taking; exception: where it’s probable (followed by this court); Held- court shouldn’t have to pay for added value of the dam; earlier value counts b/c this taking was probable

          1. problems: allows gov’t to use lowest figure; expectations of landowners dashed, encourages speculators to snatch up land, build expensive stuff there

          2. should gov’t pay value of it if used for highest/best use

    2. Regulatory Takings

      1. Penn. Coal Co. v. Mahon- homeowner sold mineral rights, co. wants to mine, would damage Mahon’s house; state statue- can’t mine if it’ll harm residence; Held: not proper exercise of police power/taking

        1. Evaluate: 1. diminution in value (relative value of taking compared to thing taken/ proportionality); 2. need to protect public (from nuisance) (here- can be dealt w/other ways); 3. reciprocity of advantage (here- taking whole value of contract)

      2. Penn Central v. NY- Penn wants to build office bldg. on top of station; landmark commission disallowed b/c landmark status; Held- proper exercise of police power; Brennan- no diminution of value, pub. nuisance not serious issue, doesn’t interfere w/Π’s primary expectation (Brennan’s test) (still can use that property in other ways)

        1. Renquist (dissent)- no reciprocity of advantage, doesn’t make everyone better off, singles out ppl w/ landmark properties, who pay cost while everyone else benefits

      3. Loretto v. Teleprompter- NY statute req. property owners to permit installation/maintenance of cable television wires; Held- is a taking; minor but permanent physical occupation of Loretto's property constitutes regulatory taking of property, just compensation is due

        1. Rule: if gov’tal regulation results in permanent physical occupation of property, it’s a regulatory taking (regardless whether it achieves an important public benefit or has only minimal economic impact on owner)

      4. Lucas v. SC Coastal Council- Π bought 2 lots on Isle of Palms to build homes on; SC statute then barred his plans; Held- court dislikes “all things considered” analysis from Penn Central, establishes more categorical approach, fears police power exception to taking

        1. Epstein- categorical better, easier to predict outcomes, plan, fewer cases go to court; vs. Posner- categories tie you down, better to take each set of factors, analyze efficiency)





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