PROPERTY A SLIDES 3 9 17 National Barbie

PROPERTY A SLIDES 3 -9 -17 National Barbie Day National Meatball Day

Thursday March 9 Music: Bach, Unaccompanied Cello Suites Yo-Yo Ma, Cello (Released 2006) DF IN ROOM A 110 A TODAY ALMOST SPRING BREAK

PROPERTY A: 3/9 THE “READY BETTY” JOKE (to accompany Problem 3 F)

Mahrenholz v. County Board “For School [of] Porpoises” Continued

Mahrenholz & DQ 3. 08 Distinguishing FSD from FSCS In its discussion of Mc. Elvain, the court says that “as an action in ejectment was brought…, the difference between a fee simple determinable and a fee simple subject to a condition subsequent would have no practical effect…. ” (S 81) Why does it believe this? If the action is brought essentially as soon as condition is violated, little or no time gap betw. violation and change in ownership.

Mahrenholz Distinguishing FSD from FSCS (3 d Para. S 78) • Use FSD to give property “for so long as it is needed for the purposes for which it is given and no longer” (a “limited grant”) • Use a FSCS “to compel compliance with a condition by penalty of a forfeiture. ” (an “absolute grant to which a condition is appended”) • Pretty fine distinction • Court is describing idealized use of the forms (not always true) • Can use to argue a particular grant is FSD or FSCS

Mahrenholz Distinguishing FSD from FSCS (S 78) Use FSD to give property “for so long as it is needed for the purposes for which it is given and no longer. ” • To Xavier, so long as he operates his dental practice on the premises. • To Yolanda, so long as she doesn’t remarry. [Purpose presumably is to provide home and/or income for widow; if she takes a new man, she is his problem. ] • To Zebulon University, so long as it is used as a research laboratory.

Mahrenholz Distinguishing FSD from FSCS (S 78) Use a FSCS “to compel compliance with a condition by penalty of a forfeiture. ” • To Xavier, but if the property is ever used for commercial purposes … • To Yolanda, but if alcohol is ever used on the premises … • To Zebulon University for construction of a science building, but if the building is not completed within 5 years or if it ever ceases to be used for educational purposes …

OLYMPIC: Mahrenholz & DQ 3. 09 -3. 11 EEL GLACIER

Olympic: Mahrenholz & DQ 3. 09 Distinguishing FSD from FSCS "to be used for school purpose only; otherwise to revert to Grantors herein. ” • Arguments for FSD?

Olympic: Mahrenholz & DQ 3. 09 Distinguishing FSD from FSCS "to be used for school purpose only; otherwise to revert to Grantors herein. ” • Arguments for FSD • “only” suggests automatic • Condition in clause creating fee, not subsequent clause • “to revert” (v. “may re-enter”) suggests automatic • Similar grants held FSD • Arguments for FSCS?

Olympic: Mahrenholz & DQ 3. 09 Distinguishing FSD from FSCS "to be used for school purpose only; otherwise to revert to Grantors herein. ” • Arguments for FSCS • 2 Clauses usually used for FSCS • No time words • “Otherwise” looks like “but if” • Most states presume FSCS

Olympic: Mahrenholz & DQ 3. 10 Distinguishing FSD from FSCS: Possible Consequences of the Distinction: • Transferability after breach (Mahrenholz issue) • Adverse Possession (Clock starts running immediately when condition violated if FSD) • Income from land after breach • Goes to future interest holder if FSD (See Lasater @ P 532) • Waiver/Estoppel by future interest holder • Only possible if FSCS

Olympic: Mahrenholz & DQ 3. 10 Distinguishing FSD from FSCS: Consequences Given significant consequences, why do so many grants fail to indicate clearly which interest is intended?

Mahrenholz Distinguishing FSD from FSCS: Test Note #2: Test Will Include At Least One Grant (Yielding Multiple Questions) with a Present Estate That Could Be Either Determinable or on Condition Subsequent, So You Need to Know Arguments Distinguishing the Two E. g. , Problem 3 I Includes This Kind of Ambiguous Grant

Olympic: Mahrenholz & DQ 3. 11 Meaning of “School Purpose” IS STORAGE A “SCHOOL PURPOSE”? • Parties’ Likely Arguments • For School District? Yes, because … • For Future Interest Holder? No, because …

Olympic: Mahrenholz & DQ 3. 11 Meaning of “School Purpose” IS STORAGE A “SCHOOL PURPOSE”? • What legal research could you do to help resolve this question?

Olympic: Mahrenholz & DQ 3. 11 Meaning of “School Purpose” IS STORAGE A “SCHOOL PURPOSE”? • Useful Legal Research includes: • CASES ON “SCHOOL PURPOSE” • CASES ON “CHURCH PURPOSE” ETC. • OTHER LEGAL LIMITS ON SCHOOL ACTIVITIES (to demonstrate what the term could reasonably be understood to mean)

Olympic: Mahrenholz & DQ 3. 11 Meaning of “School Purpose” IS STORAGE A “SCHOOL PURPOSE”? • Useful Factual Research includes: • Use of Space: Relevant Qs/Investigation? • Grantor’s Intent

Olympic: Mahrenholz & DQ 3. 11 Meaning of “School Purpose” IS STORAGE A “SCHOOL PURPOSE”? • Useful Factual Research includes: • Use of Space • What is stored & how used? • Alternatives (Crowding? Cost? ) • How regularly is storage accessed? • Grantor’s Intent: Relevant Qs/Investigation?

Olympic: Mahrenholz & DQ 3. 11 Meaning of “School Purpose” IS STORAGE A “SCHOOL PURPOSE”? • Useful Factual Research includes: Use of Space • Grantor’s Intent • Check Grant or Related Documents • Witnesses to Transaction • Ask Grantor if Still Alive • Witnesses re Grantor Beliefs •

Mahrenholz Meaning of “School Purpose” Test Note #3: Test Will Include At Least One Grant Containing an Imprecise Term Like “School Purpose” and You Will Be Asked to Consider Arguments About Whether a Particular Action or Activity Falls Within that Term.

Mahrenholz & DQ 3. 12 Why should we allow grantors to have any control at all of what happens to land after they have died? We’ll come back to after Spring Break w Shapira case.

LOGISTICS: Chapter 3 Test Preparation • I’ll Post Toward Top of Course Page by Wed. of Break: • General Test Info & Instructions Page; E-Mail Me if Qs • Assignments for Classes after Break including • Additional Instructions for Problems 3 I & 3 O • Additional Instructions for DQs following Shapira • Bank of Sample Qs & Entire Fall 2007 Test Along with: • List of Qs That Require Material We’ll Cover After Break • Answers to Qs You’re Ready For

LOGISTICS: Chapter 3 Test Preparation • DF 3/21 & 3/23: 2016 Multiple Choice Test • I’ll Post by Afternoon of Wed. 3/22: • Rest of Answers to Already Posted Qs (that we are covering) • Additional Tests & Answers • In Addition to Regular Office Hours 3/20 -3/22, I’ll Post & Hold Additional Office Hours: • • Thurs lunchtime 3/23 Fri afternoon 3/24 Sat afternoon 3/25 Sun afternoon early evening 3/26

OTHER LOGISTICS I’ll Post on Course Page During Break: • Chapter 4 -5 Materials & Updated Syllabus • Updated Assignment Sheet Covering the Rest of March • Completed Versions of Info Memo #2 and #3 • Comments/Best Answers for Some Other Posted Exam Qs Additional Final Exam Preparation • 1 st Sample Exam Question (Optional) Due Wed. 3/15 @ 5 pm • Follow Instructions on Course Page • If you do a Lawyering Q, first look at comments on Rev Probs 1 M/1 N • I’ll Be Around Most of Break; E-Mail to Make an Appointment

Executory Interests

Executory Interest • Future interest in grantee. • Cuts off prior vested interest (present estate or reversion or vested remainder) rather than waiting for it to expire naturally.

Pre-1536 (= Pre-“Common Law”) Pre. Limitations on Future Interests in Grantees • Must follow finite estate. • Must be capable of taking effect at the expiration of preceding estate. • Must not take effect before the expiration of the preceding estate.

Pre-1536 (= Pre-“Common Law”) Pre. Limitations on Future Interests in Grantees • Must follow finite estate. • Must be capable of taking effect at the expiration of preceding estate. • Must not take effect before the expiration of the preceding estate. Elimination of these Rules in 1536 Allows Creation of Executory Interests

Executory Interests Shifting v. Springing Executory Interest • No legal consequence; just categorization • Shifting Executory Interest cuts off interest of another grantee • Springing Executory Interest cuts off grantor’s fee simple or reversion • Physical Model/Analogy (if helpful)

Executory Interests EXAMPLES Shifting Executory Interest: To Danny & his heirs so long as no tobacco is grown on the land, otherwise to Arturo and his heirs.

Executory Interests EXAMPLES Springing Executory Interest: To Yujia if she passes the California bar exam. Grantor who started with Fee Simple Absolute is left with Fee Simple on Executory Limitation

(3 F) Reggie “to Veronica for life, life then to Betty and her heirs if Betty attains the age of 21. ” 21 Let’s Return to Problem 3 F & Riverdale High

(3 F) Reggie “to Veronica for life, life then to Betty and her heirs if Betty attains the age of 21. ” • Veronica: Life Estate • Betty: Contingent Remainder in Fee Simple • Reggie: Reversion • What if Veronica dies while Betty is still age 17? • Life Estate is Over • Betty Can’t Take; Condition Not Met • So Who Gets What?

(3 F) Reggie “to Veronica for life, life then to Betty and her heirs if Betty attains the age of 21. ” Veronica dies while Betty is still age 17 Common Law • If contingency not met when prior estate ends, contingent remainder is destroyed • Betty has nothing. • If Betty isn’t ready, she loses her “table. ” • Reggie’s Reversion becomes Fee Simple Absolute

Doctrine of Destructability of Contingent Remainders (Common Law) First Common Application If contingency not met when prior estate ends, contingent remainder is destroyed.

Doctrine of Destructability of Contingent Remainders Today: Overruled by statute or caselaw in every American jurisdiction except …

Doctrine of Destructability of Contingent Remainders (Today) (Today Overruled by statute or caselaw in every American jurisdiction except …

(3 F) Reggie “to Veronica for life, life then to Betty and her heirs if Betty attains the age of 21. ” Veronica dies while Betty is still age 17 Today (except FL) • If contingency not met when prior estate ends, we wait to see if it is met later. • Betty’s remainder becomes an executory interest. • Reggie takes possession and has fee simple on executory limitation (cut off if B turns 21)

(3 F) Reggie “to Veronica for life, life then to Betty and her heirs if Betty attains the age of 21. ” Veronica dies while Betty is still age 17 Today (except FL)

Doctrine of Destructability of Contingent Remainders (Common Law) Second Common Application Where there is a life estate, one or more contingent remainders, and a reversion, and the life estate and reversion merge into a fee simple, the contingent remainders are destroyed.

Doctrine of Destructability of Contingent Remainders Second Common Application • Alexa “to Brittany for life, then to Katie if Katie passes a bar exam.

Doctrine of Destructability of Contingent Remainders Second Common Application (Common Law) • Alexa “to Brittany for life, then to Katie if Katie passes a bar exam. • Brittany purchases Reversion from Alexa • Life Estate & Reversion Merge Fee Simple Absolute • Katie’s Contingent Remainder is Destroyed ↓ ↓ ↓ Merge & Destroy ↓ ↓ ↓

Today (Everywhere except Florida) Merger without Destruction • Alexa “to Brittany for life, then to Katie if Katie passes a bar exam. • Brittany purchases Reversion from Alexa • Life Estate & Reversion Merge Fee Simple on Executory Limitation • Katie’s Contingent Remainder Becomes an Executory Interest ↓ ↓ ↓ Merge ↓ ↓ ↓

EVERGLADES: Problems 3 J-3 L EGRET IN MANGROVE SWAMP

Everglades: (3 J): Mary "to Rhoda for life, then to Ted if Ted gives Mary a proper funeral. " • Rhoda?

Everglades: (3 J): Mary "to Rhoda for life, then to Ted if Ted gives Mary a proper funeral. " • Rhoda: Life Estate • Ted?

Everglades: (3 J): Mary "to Rhoda for life, then to Ted if Ted gives Mary a proper funeral. " • Rhoda: Life Estate • Ted: Contingent Remainder (if today: in f. s. ) • Anything Else?

Everglades: (3 J): Mary "to Rhoda for life, then to Ted if Ted gives Mary a proper funeral. " • Rhoda: Life Estate • Ted: Contingent Remainder (if today: in f. s. ) • Mary: Reversion

Everglades: (3 J): Mary "to Rhoda for life, then to Ted if Ted gives Rhoda a proper funeral. " • Rhoda: Life Estate • Ted? (Does Change from Mary’s Funeral to Rhoda’s Affect Nature of Ted’s Interest? )

Everglades: (3 J): Mary "to Rhoda for life, then to Ted if Ted gives Rhoda a proper funeral. " • Rhoda: Life Estate • Ted? (Does Change from Mary’s Funeral to Rhoda’s Affect Nature of Ted’s Interest? ) • HINT: What would make a funeral not “proper”?

Everglades: (3 J): Mary "to Rhoda for life, then to Ted if Ted gives Mary Rhoda a proper funeral. " • Rhoda: Life Estate • Ted can’t possibly give Rhoda a “proper” funeral by the time Rhoda dies. • There will be a gap in time between the end of R’s life estate and Ted’s interest. • Thus, Ted’s interest cannot be a remainder; • So Ted has …?

Everglades: (3 J): Mary "to Rhoda for life, then to Ted if Ted gives Rhoda a proper funeral. " • Rhoda: Life Estate • Mary: Reversion • Ted: Springing Executory Interest (would cut off grantor’s interest (reversion))

EXAM TIP: USE COMMON SENSE!! • Can’t give a “proper” funeral to a person until after the person has died.

EXAM TIP: USE COMMON SENSE!! • Can’t give a “proper” funeral to a person until after the person has died. • Similarly, if an interest has been conveyed in a will, you can assume the grantor is dead (will would not have become effective until death of grantor).

Life Estates & Remainders: Additional Information

ME v. TEXTBOOK (P 523) • The Textbook says the Common Law rule that a Life Estate was the default estate did not apply to grants in wills. • For our purposes, assume that, at Common Law, a Life Estate was the default estate under all circumstances.

Alternative Contingent Remainders Two contingent remainders where the event that causes one to vest will destroy the other.

Alternative Contingent Remainders Two contingent remainders where the event that causes one to vest will destroy the other. Example: Jen grants: “To Kyle for life, then to Lucky and her heirs if she graduates from law school, but if she never graduates from law school, then to Mallory and her heirs”.

Alternative Contingent Remainders Two contingent remainders for which the event that causes one to vest will destroy the other. Example: To Kyle for life, then to Lucky and her heirs if she graduates from law school, but if she never graduates from law school, then to Mallory and her heirs. Here, only two possibilities: either (1) Lucky will graduate from law school (and would then take) or (2) she will die before graduating from law school (Mallory would then take)

Alternative Contingent Remainders Two contingent remainders for which the event that causes one to vest will destroy the other. Example: • Example: Jen: “To Kyle for life, then to Lucky and her heirs if she graduates from law school, but if she never graduates from law school, then to Mallory and her heirs. ” • Note: Even though the alternative contingent remainders might appear to exhaust all possibilities, the convention is that you still must pencil in a reversion in the grantor to fill up the time line. Thus, – Kyle has Life Estate – Lucky & Mallory each have an Alternate Contingent Remainder (in F. S. ) – Jen retains a Reversion

Vested Remainder Subject to Divestment • Vested Remainder followed by an Executory Interest that could cut it off before it becomes possessory. • Same as what textbook calls “Vested Remainder Subject to Complete Defeasance” (P 539)

Contingent Remainder (1) v. Vested Remainder Subject to Divestment (2) (1)O “to A for life, then to B & her heirs if she turns 21, but if B dies before 21, then to C and his heirs. ” Reversion in O. (2) O “to A for life, then to B & her heirs, but if B dies before 21, then to C & his heirs. ” (No Reversion in O)

EXAM TIP: COMMON MISTAKES • Contingent Remainder Subject to Open • Contingent Remainder Subject to Divestment • Executory Interest Subject to Divestment

EXAM TIP: COMMON MISTAKES • Contingent Remainder Subject to Open • Contingent Remainder Subject to Divestment • Executory Interest Subject to Divestment These Phrases Only Used for Vested Remainders

Everglades (3 K): “To George for life, then to Kramer and his heirs; but if Kramer does not attain the age of 21, then to Elaine and her heirs. " Kramer is 15 years old. • George ?

Everglades (3 K): “To George for life, then to Kramer and his heirs; but if Kramer does not attain the age of 21, then to Elaine and her heirs. " Kramer is 15 years old. • George: Life Estate • Kramer?

Everglades (3 K): “To George for life, then to Kramer and his heirs; but if Kramer does not attain the age of 21, then to Elaine and her heirs. " Kramer is 15 years old. • George: Life Estate • Kramer: Vested Rem. (in f. s. ) Subj. to Divestment • Vested b/c K not reaching 21 is condition on Elaine’s interest; K doesn’t have to reach 21 to get possession • Subject to Divestment b/c K can lose interest before it becomes possessory if he dies before 21 while G alive • Elaine?

Everglades (3 K): “To George for life, then to Kramer and his heirs; but if Kramer does not attain the age of 21, then to Elaine and her heirs. " Kramer is 15 years old. • George: Life Estate • Kramer: Vested Rem. (in f. s. ) Subj. to Divestment • Elaine: Shifting Executory Interest (in f. s. ) • Executory Interest b/c would cut off K’s Vested Rem. (or Fee if K gets possession before turning 21) • Shifting b/c cutting off grantee’s interest • Note: If there’s a vested remainder, can’t have a second remainder following same finite interest.

Everglades (3 K): “To George for life, then to Kramer and his heirs; but if Kramer does not attain the age of 21, then to Elaine and her heirs. " Kramer is 15 years old. • George: Life Estate • Kramer: Vested Rem. (in f. s. ) Subj. to Divestment • Elaine: Shifting Executory Interest (in f. s. ) What if Kramer then turns 21 before George dies?

Everglades (3 K): “To George for life, then to Kramer and his heirs; but if Kramer does not attain the age of 21, then to Elaine and her heirs. " Kramer turns 21; George still alive. • George: Life Estate • Kramer: Vested Rem. (in f. s. ) Subj. to Divestment • Elaine: Shifting Executory Interest (in f. s. ) Interest fails.