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Class IX Adverse Possession of Chattels

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Class IX Adverse Possession of Chattels

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    1. Class IX – Adverse Possession of Chattels Prof. David Glazier Sep 21, 2006

    2. Overview of Today’s Class Adverse Possession: Some additional points on real property - Disability - Possession against the government Adverse possession of chattels - O’Keeffe v. Snyder Reading for next Tuesday

    3. Adverse Possession - Disability IF O disabled when cause of action accrues, - minority - mental incapacity - imprisoned then statutory period to contest adverse possession is extended - all states recognize this concept - timing rules vary widely

    4. Disability in California Cal. Code of Civil Procedure § 328: - If O is minor or insane when gaining title, SOL period does not run: -- for duration of disability (20 year limit) -- get normal 5 year period after that - Imprisonment extension capped at 2 years Example 1: O age 5 inherits Blackacre in 2000 T begins adverse possession that year When can T perfect title?

    5. Disability in California Cal. Code of Civil Procedure § 328: - If O is minor or insane when gaining title, SOL period does not run: -- for duration of disability (20 year limit) -- get normal 5 year period after that

    6. Disability in California Cal. Code of Civil Procedure § 328: - If O is minor or insane when gaining title, SOL period does not run: -- for duration of disability (20 year limit) -- get normal 5 year period after that

    7. Disability in California Cal. Code of Civil Procedure § 328: - If O is minor or insane when gaining title, SOL period does not run: -- for duration of disability (20 year limit) -- get normal 5 year period after that

    8. Possession v. Government General rule is no adverse possession v. govt - Old English law barred SOL against king - American rule often in state constitutions -- land held in trust for public -- shouldn’t lose by an official’s negligence But some states allow for some or all land - may be longer SOL

    9. Possession v. the Government (Cal) California Civil Code § 1007: Occupancy for the period prescribed by the Code of Civil Procedure as sufficient to bar any action for the recovery of the property confers a title thereto, denominated a title by prescription, which is sufficient against all, but no possession by any person, firm or corporation no matter how long continued of any land, water, water right, easement, or other property whatsoever dedicated to a public use by a public utility, or dedicated to or owned by the state or any public entity, shall ever ripen into any title, interest or right against the owner thereof.

    10. O’Keeffe v. Snyder (N.J. 1980) The Facts (She Said): 1946: 3 paintings stolen from gallery - no break-in, no loss report - limited discussion w/in “art world” 1972: reported to Am Art Dealers Assn 1975: GOK learns painting’s location 1976: GOK demands return

    11. O’Keeffe v. Snyder (N.J. 1980) The Facts (He Said): 1943: Paintings hanging in Frank Sr. home - family relationship between Frank & Stieglitz 1965: Frank Sr. gives paintings to son Ulrich - shown publicly on at least one subsequent date 1975: Frank sells to ? Snyder

    12. O’Keeffe v. Snyder: Procedural History O’Keeffe brings replevin action in March 1976 Snyder responds by: - asserting rights as purchaser for value *** - asserting ownership by adverse possession - impleads Frank as 3rd party ? *** Trial court gives Snyder summary judgment - holds SOL started running at date of theft Appellate Division reverses - holds adverse possession not proven -- no showing of open & notorious

    13. O’Keeffe v. Snyder: Decision Factual disputes require rehearing Lower courts to be guided by these rules: Thief cannot transfer good title Good faith purchaser can get valid title under UCC - if transferor had voidable title *** -- paid with a bad check -- deception as to buyers identity -- delivery procured through fraud Discovery rule should apply to stolen art - IF O exercises due diligence, - SOL tolled until O learns/should learn location

    14. Adverse Possession of Chattels Conceptually same as AP of real property - SOL often shorter for chattels States differ on start of SOL period after theft: (1) conversion rule (date of loss) - typically tolled if fraudulent concealment (2) discovery rule (date location discovered) - either actual or when should have known - normally requires “due diligence” (3) demand rule (date return demanded) - NY rule in Guggenheim Fndn v. Lubell

    15. California Law on Art Theft Cal Civil Procedure Code § 338(c): . . . The cause of action in the case of theft . . . of any article of historical, interpretive, scientific, or artistic significance is not deemed to have accrued until the discovery of the whereabouts of the article by the aggrieved party. . .

    16. Art Theft - a Real Example 1933 – Carlotta Landsburg sends art to Paris 1940 – Nazis loot Paris art dealer 1970s – Marilyn Alsdorf buys painting in N.Y 2002 – Art Loss Register identifies true O - Landsburg heir, UC Berkeley law student -- coincidently painting at art dealer in LA - Painting returned to Chicago day of service State & Federal actions - ultimately settle out of court for $6.5M

    17. Reading for Tuesday Sept 26 Acquisition by Gift Read introductory material on pp. 157-58 Read Newman v. Bost (pp. 159-65) Read Gruen v. Gruen (pp. 166-71) Can skip problems on pp. 158-59 and p. 172

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