Property Notes
Property Notes ~PART I – BORDERS OF PROPERTY~ 1
FIXTURES ............................................................................................................................................. 3 1.1 1.2
2
LICENSES .............................................................................................................................................. 4 2.1 2.2 2.3
3
TEST ................................................................................................................................................. 3 RECENT CASE LAW .......................................................................................................................... 4 BARE ................................................................................................................................................ 5 CONTRACTUAL ................................................................................................................................. 5 LICENSE & GRANT............................................................................................................................ 5
POSSESSION ......................................................................................................................................... 5 3.1 3.2 3.3
POSSESSION AS RIGHT IN ITSELF ....................................................................................................... 6 LAWFUL POSSESSION........................................................................................................................ 6 DISPUTES OVER POSSESSION ............................................................................................................. 8
4
RECOGNITION OF RIGHT AT LAW .............................................................................................. 8
5
TENURE ................................................................................................................................................. 8 5.1 5.2
NATIVE TITLE ................................................................................................................................... 8 LAND REVERTING TO CROWN ........................................................................................................... 8
~PART II – CORPOREAL HEREDITAMENTS~ 6
FREEHOLD ESTATES ........................................................................................................................ 9 6.1 6.2 6.3
7
LEASEHOLD ESTATES.................................................................................................................... 12 7.1 7.2 7.3 7.4 7.5 7.6 7.7
8
GENERAL ........................................................................................................................................ 12 FORMALITIES .................................................................................................................................. 12 TYPES OF LEASE ............................................................................................................................. 13 CHARACTERISTICS OF LEASE .......................................................................................................... 15 RIGHTS & DUTIES OF LL & T ......................................................................................................... 17 ASSIGNMENTS & SUBLEASES ......................................................................................................... 21 TERMINATION OF LEASES ............................................................................................................... 24
LIMITATIONS ON ESTATES .......................................................................................................... 29 8.1 8.2 8.3
9
FEE SIMPLE ....................................................................................................................................... 9 FEE TAIL ......................................................................................................................................... 10 LIFE ESTATE ................................................................................................................................... 10
DETERMINABLE .............................................................................................................................. 29 CONDITIONAL ................................................................................................................................. 29 DISTINCTIONS BETWEEN DETERMINABLE & CONDITIONAL ESTATES .............................................. 30
FUTURE INTERESTS........................................................................................................................ 31 9.1 9.2 9.3
REVERSION ..................................................................................................................................... 31 REMAINDER .................................................................................................................................... 31 VESTED V CONTINGENT INTERESTS ................................................................................................ 32
~PART III – INCORPOREAL HEREDITAMENTS~ 10
EASEMENTS ................................................................................................................................... 32 10.1 10.2
DEFINITION ..................................................................................................................................... 32 TYPES OF EASEMENTS ..................................................................................................................... 33
1
10.3 10.4 10.5 10.6 11
CHARACTERISTICS OF EASEMENTS ................................................................................................. 34 CREATION OF EASEMENTS .............................................................................................................. 36 REMEDIES ....................................................................................................................................... 39 EXTINGUISHMENT OR MODIFICATION ............................................................................................. 39 RESTRICTIVE COVENANTS ...................................................................................................... 40
11.1 11.2 11.3 11.4
DISTINCTION FROM EASEMENT ....................................................................................................... 40 EQUITABLE INTERVENTION............................................................................................................. 41 ELEMENTS ...................................................................................................................................... 41 DOCTRINE OF BUILDING SCHEMES ................................................................................................. 42
12
PROFITS .......................................................................................................................................... 42
13
RENTCHARGES............................................................................................................................. 42
14
MORTGAGES ................................................................................................................................. 42 14.1 14.2
GENERAL LAW ............................................................................................................................... 42 TORRENS ........................................................................................................................................ 43
~PART IV – DISPOSITIONS & PRIORITIES~ 15
DISPOSITIONS ............................................................................................................................... 43 15.1 15.2 15.3 15.4 15.5
16
WILLS ............................................................................................................................................. 43 ENFORCEABILITY OF CONTRACTS ................................................................................................... 43 OBLIGATIONS ON SELLER OF LAND ................................................................................................. 43 LEGAL INTERESTS ........................................................................................................................... 44 EQUITABLE INTERESTS ................................................................................................................... 44 PRIORITIES .................................................................................................................................... 50
16.1 16.2 16.3 16.4 16.5
PRIOR LEGAL V SUBSEQUENT LEGAL ............................................................................................. 50 PRIOR LEGAL V SUBSEQUENT EQUITABLE ..................................................................................... 51 PRIOR EQUITABLE V SUBSEQUENT LEGAL ..................................................................................... 52 PRIOR EQUITABLE V SUBSEQUENT EQUITABLE .............................................................................. 54 EQUITY & SUBSEQUENT EQUITABLE .............................................................................................. 55
~PART V – TORRENS SYSTEM~ 17
PROCESS OF REGISTRATION .................................................................................................. 57 17.1 17.2 17.3 17.4
18
TWO STAGE PROCESS ...................................................................................................................... 57 DISPOSITIONS ................................................................................................................................. 57 DEEDS............................................................................................................................................. 57 VOID INSTRUMENTS STILL CONFER TITLE ....................................................................................... 57 INDEFEASIBILITY ........................................................................................................................ 58
18.1 18.2 18.3
IMMEDIATE V DEFERRED INDEFEASIBILITY ..................................................................................... 58 LIMITATIONS ON INDEFEASIBILITY ................................................................................................. 59 EXCEPTIONS TO INDEFEASIBILITY................................................................................................... 59
2
Part I – Borders to Property
1 Fixtures -
-
Disputes relating to ownership of particular chattels: o LL & T ! items attached to property by T during lease? o Vendor & purchaser ! objects in house at time of contract of sale? o Mortgagor & Mortgagee o Life T and remaindermen or reversioner. Determined by ‘objective intention with which item put in place’ [Conti J in NAB v Blacker]
1.1 Test -
Express terms can determine ownership so long as satisfactory under contract law ! Montague v Long. In absence, maxim = quicquid plantatur solo, solo cedit – ‘what ever is attached to the land forms part of it’.
1.1.1
DEGREE of Annexation
- MANNER in which chattel attached: 1. If chattel attached other than by own weight – i.e. screws/bolts = prima facie fixture ! Metal Manufacturers v Federal Commissioner of Tax. o Even if degree of attachment very slight ! Holland v Hodgson. o Greater degree attachment, stronger the presumption that it is fixture ! Spyer v Phillipson. o Buckland v Butterfield: verandah attached to house held to be fixture. 2. If chattel only attached by own weight = prima facie not fixture: o Even if embedded in soil ! Hamp v Bygrave. o Elwes v Maw: barn attached by wooden up-right posts inset in ground = not fixture. o Hulme v Brigham: printing press attached only by own weight = not fixture.
1.1.2 -
-
OBJECT of Annexation (better test)
Reid v Smith: was object affixed in order to: o Display chattel = not fixture, even if attached other than by own weight ! Westpac v Rabaiov. o Benefit land = fixture. Before annexation, must be shown that annexation ‘absolutely necessary’ ! Re De Falbe.
1.1.2.1 Objective Test -
What reasonable person would consider to be reason for attaching chattel to land ! Hobson v Gorringe. Actual intention of parties not indicative ! Emmanuel (Rundle Mall) v CS (SA).
1.1.2.2 Examples -
-
Leigh v Taylor: NO FIXTURE ⇒ T for life – attached valuable tapestries to wall ⇒ Tapestries attached to canvas by tacks – canvas nailed to wall. o HL held no intention to benefit land – only way of attaching tapestries was with nails. o Similar decision by Engl Ca in Spyer v Phillipson relating to oak paneling nailed to walls by T. Re Starline Furniture: FIXTURE o Joinery machines bolted to floor but could easily be removed – still held to be fixture as affixed for better use of property as furniture factory.
3
1.1.3 -
Degree of annexation v object of annexation?
Object of annexation has far greater significance - ‘greater reliance upon individual surrounding circumstances’ ! Land Valuation Tribunal - Yallingup Beach v Valuer General. Degree test relevant in negative sense – chattel only attached by weight = not fixture.
1.1.3.1 Different considerations -
Metal Manufacturers v Federal Commissioner of Tax – Emmett J o Would removal destroy property o Would cost of removal exceed value of property o Would removal damage buildings/property o Was attachment for better enjoyment of property OR of land/buildings. o Nature of property – court less likely to infer intention to benefit real estate if person w/limited interest eg. T. o Contemplated use of property o Function to be served by annexation of property.
1.2 Recent Case Law 1.2.1 -
1.2.2 -
Cases turn on specific facts
Ball-Guymer v Livantes: office w/ partition walls & ceiling – not fixture ! despite walls being fixed to floor with nails & bolted to sidewalls, licensee cause erection of office for temporary prupose. Attorney General v R T Co: 2 printing presses attached by nuts & bolts = not fixtures – sole purpose of annexation to hold presses steady. Berkley v Poulett: Large paintings screwed to wall = not fixtures – sole purpose to enjoy them as paintings. Wllesmore v Ratford: Firbeglass house installed at exhibition centre – only intended to be there for 1 year = fixture, annexed to land by steal spikes, welded to steel base plates supporting house. Anthony v Cth: Water pipelines from Darwin to Manton Dam = fixtures. Belgrave v Barlin-Scott: Air conditioning plants & chillers attached to rooftop – bolted to water pipes and stood by own weight of specifically constructed platform = fixtures. Dean v Andrew: large fabricated greenhouse bolted to concrete plinth = not fixture. Hynes v Vaughan: piles of rubbish (mostly soil, rotting vegetation = fixture. AAT Case: operating plant inside car wash = not fixture. Farley v Hawkins: built-in dishwasher & shed = fixtures (shed – bolted into concrete & dishwasher – plumbing connection enough, not electrical connection though). Palumberi v Palumberi: o Carpets & stove = fixtures o Blinds, curtains, large built-in linen cabinet, TV antenna, outside spotlight, light fittings, portable heater = not fixtures.
1.2.3 -
Regard to all factors
Gouldburn CC V McIntosh: court must regard all circumstances incl. relationship between parties when object installed + object & degree of annexation. Farley v Hawkins: varying degree of emphasis on different factors – common sense approach. NAB v Blacker (2000) (FC): no single test, no particular factor has primacy, regard to all circumstances.
T removing fixtures
T can remove fixtures so long as still tenant ! Concept Projects v McKay – Alderson B in Weeton v Woodcock.
2 Licenses -
Mere personal rights – do not fit into any category of rights recognised at law or equity.
4
-
Only remedy damages for breach of contract ! Kerrison v Smith. May yield privileges or permissions to use land OR result in restrictions over use of land.
2.1 Bare -
Promise/permission to use land without consideration. Revokable by will – allowing licensee reasonable time to collect possessions. o Once revoked, licensee trespasser – can be removed by reasonable force ! McPhail v Persons, Names Unknown.
2.2 Contractual -
Promise/permission to use land supported by consideration.
2.2.1 -
Contractual licence not Property right
Revokable by will of landholder even before any time expressly/impliedly fixed in contract. o Even if contracting party done no wrong – landholder still in breach of contract though. Cowell v Rosehill Racecourse: ⇒ P sued D for assault ⇒ Defence was that P was trespassing – D’s agents removed him using only reasonable force. ⇒ P argued he had paid D & in return D had given him leave & licence to enter AND had promised not to revoke licence o HC held for D: o P obtained only contractual right, not property right – ‘the right to see a spectacle cannot in the ordinary sense of legal language be regarded as a property right’ [Latham CJ]. o Contractual right can be revoked in certain circumstances – ‘if the individual racegoer behaves in a disorderly, insulting, or objectionable manner, he may be expelled notwithstanding that he has paid for admission’ [Dixon J]. o Contractual right does not include remedy for assault – Dixon J: P’s legal duty to leave premises after notice of revocation of licence ! only remedy = repayment of admission price – possibly. o Contractual right usually does not provide for specific enforcement in equity.
2.2.1.1 Specific Enforcement -
-
Generally no specific enforcement of rights out of contract ! but EXCEPTIONS: o Heidke v Sydney City Council: " Compensation not adequate remedy for substantial damage inflicted upon licencee by revoking licence • eg. hire of hall – no lease (no exclusive possession), but should disappointed couple only be able to sue for damages if hire cancelled day before wedding day?? " This does not necessarily mean injunction should be granted BUT equitable remedies = discretionary & Hardie AJ exercised his discretion. ENGLAND: quasi-proprietary rights – certain valuable contractual licences specifically enforceable in equity ! not full equitable rights though – no priority (Ashburn v Arnold).
2.3 License & Grant -
Licence required to use grant effectively ! eg. licence to cross land to dig under legal profit. Licence is enforceable as grant is enforceable.
3 Possession -
To recover/gain possession – sue for action for possession under Supreme Court Rules. More important than ownership – adverse possession can extinguish ownership.
5
3.1 Possession as right in itself -
Defined on 2 criteria = exclusive possession: 1. Taking custody of a thing – as regards land: substantial occupation of an area. 2. With animus possidendi – intention to treat the things as one’s own & intention to exclude all other persons including those w/ better claim.
3.1.1 -
Possession of land
Where 2 criteria satisfied, person is in possession – even if wrongfully on land i.e. squatter/trespasser. Can be obtained w/out formality – s.31(c) LPA. Right in rem – good against all the world except person with a better right to possession. Continues until abandoned ! Allen v Roughley. May be assigned ! Asher v Whitlock.
3.2 Lawful Possession 1. By transfer of property/goods 2. Res nullius: something that has never been owned, eg. animals. 3. Abandoned goods/property.
3.2.1
Res Nullius
3.2.1.1 Taking custody – outside scope of strict test -
-
Young v Hitchens: ⇒ Y operated fish trawler – had fished partially trapped in net, was about to close net and bring fish aboard. ⇒ H interrupted – injured, killed, caused some fish to be lost. o FC QB held for D: o Patterson J: ‘all but reducing into possession is [not] the same as reducing into possession’. o Lord Denman CJ: ‘P would have had possession but for act of D; but quite certain that he did not have possession… It is impossible to say that he had, until he had actual power over the fish’. o Indicated STRICT TEST: must do everything possible to bring into possession – i.e. fish in possession once loaded onto ship. Pierson v Post: ⇒ Hunter killed fox by shooting it nd ⇒ 2 person picked up dead fox – claimed possession of it. o Held that hunter not in possession of fox as he had not physically picked it up ∴ nd property of 2 person.
3.2.1.2 Taking custody – within scope of strict test + Animus Possidendi -
The Tubantia: ⇒ P set out to find and recover Tubantia – sunken ship. ⇒ P spent large amount of money (£40,000) – engaged steamers, tugs & employed divers, salvage experts. ⇒ Located ship – long process of attempting to recover ship: only 2 divers at a time, bad weather ! no more than 25 working days in 1923. ⇒ D arrived & interrupted P: sent down own divers, attempted to moor on P’s bouy, raise P’s grappling irons & anchor. ⇒ D’s interruption endangered success of P’s expedition. o Engl HC held for P – held P had possession of Tubantia. o No doubt did everything possible in terms of taking custody of wreck: o To say that because work could only be done 2 at a time in short spells with long interruptions, and because access was restricted by weather, P did not do enough for possession, would be ‘very discouraging to the salvage enterprise at a time when it is of great importance’.
6
o
3.2.2 -
Also, they did all they could to take custody with animus possidendi – that is, with intention to exclude all others from possession: o ‘They were in a position to prevent any useful work by new-comers’. o ‘No new-comer could have exercised upon the wreck the kind of control the Ps had’. o ‘There was a power to exclude strangers from interfering’.
Abandoned Goods
Abandonment is an objective test: court will determine if reasonable person would have abandoned goods – depends on nature of goods. Armorie v Delamirie: ⇒ Apprentice found jewel while chimney sweeping ⇒ Had it appraised by goldsmith – A rejected goldsmith’s offer, but goldsmith did not return jewel o HC found in favour of A - A had prior possession (original owner unknown) and was protected against all but someone with superior right.
3.2.2.1 Nature of Goods 3.2.2.1.1 Goods found in private premises - Chairman NCA v Flack: ⇒ Police raid on Mrs. F’s home found briefcase full of large amount of money ⇒ Police had warrant to search under suspicion of Mrs. F’s son. ⇒ F declared she had never seen briefcase or money ⇒ F argued she manifested intention to exercise control over any chattel in her premises, even those she was unaware of. o FC held for F – if briefcase had been found by guest or thief surely F would have superior right ∴ police had to give back case after used for evidential purposes. 3.2.2.1.2 Goods found in or attached to land - Waverly Borough Council v Fletcher: ⇒ F found gold brooch nine inches below surface o Applied Donaldson LJ in Parker v British Airways Board referring to objects found in or on land rather than objects found in a building: 1. Where object found in or attached to land, owner/lawful possessor has better title than finder. 2. Where object found unattached on land, owner/lawful possessor only has better title if he exercised such manifest control over land as to indicate intention to control anything found on it. o ∴ since object found in land, manifest intention to control need not be shown, brooch held to be in possession of council.
3.2.3 -
Abandoned Property
Hannah v Peel: property considered abandoned due to absence of control where owner of a house had never entered into possession though the title had devolved to him.
3.2.3.1 Adverse possession -
-
Action for possession statute barred if time of action is 15 yrs after dispossession – s.4 Limitation of Actions Act 1936 (SA). Right of owner extinguished after 15 years continuous adverse possession by another or others in combination – s.28 Limitation of Actions Act 1936 (SA). Criteria: nec vi, nec clam, nec precario. o Peaceful (not by force) o Open (not secret) o Without consent or permission of owner/prior possessor. Re Johnson. Adverse possessor is not successor-in-title of prior possessor – holds possessory title ! assignable.
7
FIXTURES ............................................................................................................................................. 3 1.1 1.2
2
LICENSES .............................................................................................................................................. 4 2.1 2.2 2.3
3
TEST ................................................................................................................................................. 3 RECENT CASE LAW .......................................................................................................................... 4 BARE ................................................................................................................................................ 5 CONTRACTUAL ................................................................................................................................. 5 LICENSE & GRANT............................................................................................................................ 5
POSSESSION ......................................................................................................................................... 5 3.1 3.2 3.3
POSSESSION AS RIGHT IN ITSELF ....................................................................................................... 6 LAWFUL POSSESSION........................................................................................................................ 6 DISPUTES OVER POSSESSION ............................................................................................................. 8
4
RECOGNITION OF RIGHT AT LAW .............................................................................................. 8
5
TENURE ................................................................................................................................................. 8 5.1 5.2
NATIVE TITLE ................................................................................................................................... 8 LAND REVERTING TO CROWN ........................................................................................................... 8
~PART II – CORPOREAL HEREDITAMENTS~ 6
FREEHOLD ESTATES ........................................................................................................................ 9 6.1 6.2 6.3
7
LEASEHOLD ESTATES.................................................................................................................... 12 7.1 7.2 7.3 7.4 7.5 7.6 7.7
8
GENERAL ........................................................................................................................................ 12 FORMALITIES .................................................................................................................................. 12 TYPES OF LEASE ............................................................................................................................. 13 CHARACTERISTICS OF LEASE .......................................................................................................... 15 RIGHTS & DUTIES OF LL & T ......................................................................................................... 17 ASSIGNMENTS & SUBLEASES ......................................................................................................... 21 TERMINATION OF LEASES ............................................................................................................... 24
LIMITATIONS ON ESTATES .......................................................................................................... 29 8.1 8.2 8.3
9
FEE SIMPLE ....................................................................................................................................... 9 FEE TAIL ......................................................................................................................................... 10 LIFE ESTATE ................................................................................................................................... 10
DETERMINABLE .............................................................................................................................. 29 CONDITIONAL ................................................................................................................................. 29 DISTINCTIONS BETWEEN DETERMINABLE & CONDITIONAL ESTATES .............................................. 30
FUTURE INTERESTS........................................................................................................................ 31 9.1 9.2 9.3
REVERSION ..................................................................................................................................... 31 REMAINDER .................................................................................................................................... 31 VESTED V CONTINGENT INTERESTS ................................................................................................ 32
~PART III – INCORPOREAL HEREDITAMENTS~ 10
EASEMENTS ................................................................................................................................... 32 10.1 10.2
DEFINITION ..................................................................................................................................... 32 TYPES OF EASEMENTS ..................................................................................................................... 33
1
10.3 10.4 10.5 10.6 11
CHARACTERISTICS OF EASEMENTS ................................................................................................. 34 CREATION OF EASEMENTS .............................................................................................................. 36 REMEDIES ....................................................................................................................................... 39 EXTINGUISHMENT OR MODIFICATION ............................................................................................. 39 RESTRICTIVE COVENANTS ...................................................................................................... 40
11.1 11.2 11.3 11.4
DISTINCTION FROM EASEMENT ....................................................................................................... 40 EQUITABLE INTERVENTION............................................................................................................. 41 ELEMENTS ...................................................................................................................................... 41 DOCTRINE OF BUILDING SCHEMES ................................................................................................. 42
12
PROFITS .......................................................................................................................................... 42
13
RENTCHARGES............................................................................................................................. 42
14
MORTGAGES ................................................................................................................................. 42 14.1 14.2
GENERAL LAW ............................................................................................................................... 42 TORRENS ........................................................................................................................................ 43
~PART IV – DISPOSITIONS & PRIORITIES~ 15
DISPOSITIONS ............................................................................................................................... 43 15.1 15.2 15.3 15.4 15.5
16
WILLS ............................................................................................................................................. 43 ENFORCEABILITY OF CONTRACTS ................................................................................................... 43 OBLIGATIONS ON SELLER OF LAND ................................................................................................. 43 LEGAL INTERESTS ........................................................................................................................... 44 EQUITABLE INTERESTS ................................................................................................................... 44 PRIORITIES .................................................................................................................................... 50
16.1 16.2 16.3 16.4 16.5
PRIOR LEGAL V SUBSEQUENT LEGAL ............................................................................................. 50 PRIOR LEGAL V SUBSEQUENT EQUITABLE ..................................................................................... 51 PRIOR EQUITABLE V SUBSEQUENT LEGAL ..................................................................................... 52 PRIOR EQUITABLE V SUBSEQUENT EQUITABLE .............................................................................. 54 EQUITY & SUBSEQUENT EQUITABLE .............................................................................................. 55
~PART V – TORRENS SYSTEM~ 17
PROCESS OF REGISTRATION .................................................................................................. 57 17.1 17.2 17.3 17.4
18
TWO STAGE PROCESS ...................................................................................................................... 57 DISPOSITIONS ................................................................................................................................. 57 DEEDS............................................................................................................................................. 57 VOID INSTRUMENTS STILL CONFER TITLE ....................................................................................... 57 INDEFEASIBILITY ........................................................................................................................ 58
18.1 18.2 18.3
IMMEDIATE V DEFERRED INDEFEASIBILITY ..................................................................................... 58 LIMITATIONS ON INDEFEASIBILITY ................................................................................................. 59 EXCEPTIONS TO INDEFEASIBILITY................................................................................................... 59
2
Part I – Borders to Property
1 Fixtures -
-
Disputes relating to ownership of particular chattels: o LL & T ! items attached to property by T during lease? o Vendor & purchaser ! objects in house at time of contract of sale? o Mortgagor & Mortgagee o Life T and remaindermen or reversioner. Determined by ‘objective intention with which item put in place’ [Conti J in NAB v Blacker]
1.1 Test -
Express terms can determine ownership so long as satisfactory under contract law ! Montague v Long. In absence, maxim = quicquid plantatur solo, solo cedit – ‘what ever is attached to the land forms part of it’.
1.1.1
DEGREE of Annexation
- MANNER in which chattel attached: 1. If chattel attached other than by own weight – i.e. screws/bolts = prima facie fixture ! Metal Manufacturers v Federal Commissioner of Tax. o Even if degree of attachment very slight ! Holland v Hodgson. o Greater degree attachment, stronger the presumption that it is fixture ! Spyer v Phillipson. o Buckland v Butterfield: verandah attached to house held to be fixture. 2. If chattel only attached by own weight = prima facie not fixture: o Even if embedded in soil ! Hamp v Bygrave. o Elwes v Maw: barn attached by wooden up-right posts inset in ground = not fixture. o Hulme v Brigham: printing press attached only by own weight = not fixture.
1.1.2 -
-
OBJECT of Annexation (better test)
Reid v Smith: was object affixed in order to: o Display chattel = not fixture, even if attached other than by own weight ! Westpac v Rabaiov. o Benefit land = fixture. Before annexation, must be shown that annexation ‘absolutely necessary’ ! Re De Falbe.
1.1.2.1 Objective Test -
What reasonable person would consider to be reason for attaching chattel to land ! Hobson v Gorringe. Actual intention of parties not indicative ! Emmanuel (Rundle Mall) v CS (SA).
1.1.2.2 Examples -
-
Leigh v Taylor: NO FIXTURE ⇒ T for life – attached valuable tapestries to wall ⇒ Tapestries attached to canvas by tacks – canvas nailed to wall. o HL held no intention to benefit land – only way of attaching tapestries was with nails. o Similar decision by Engl Ca in Spyer v Phillipson relating to oak paneling nailed to walls by T. Re Starline Furniture: FIXTURE o Joinery machines bolted to floor but could easily be removed – still held to be fixture as affixed for better use of property as furniture factory.
3
1.1.3 -
Degree of annexation v object of annexation?
Object of annexation has far greater significance - ‘greater reliance upon individual surrounding circumstances’ ! Land Valuation Tribunal - Yallingup Beach v Valuer General. Degree test relevant in negative sense – chattel only attached by weight = not fixture.
1.1.3.1 Different considerations -
Metal Manufacturers v Federal Commissioner of Tax – Emmett J o Would removal destroy property o Would cost of removal exceed value of property o Would removal damage buildings/property o Was attachment for better enjoyment of property OR of land/buildings. o Nature of property – court less likely to infer intention to benefit real estate if person w/limited interest eg. T. o Contemplated use of property o Function to be served by annexation of property.
1.2 Recent Case Law 1.2.1 -
1.2.2 -
Cases turn on specific facts
Ball-Guymer v Livantes: office w/ partition walls & ceiling – not fixture ! despite walls being fixed to floor with nails & bolted to sidewalls, licensee cause erection of office for temporary prupose. Attorney General v R T Co: 2 printing presses attached by nuts & bolts = not fixtures – sole purpose of annexation to hold presses steady. Berkley v Poulett: Large paintings screwed to wall = not fixtures – sole purpose to enjoy them as paintings. Wllesmore v Ratford: Firbeglass house installed at exhibition centre – only intended to be there for 1 year = fixture, annexed to land by steal spikes, welded to steel base plates supporting house. Anthony v Cth: Water pipelines from Darwin to Manton Dam = fixtures. Belgrave v Barlin-Scott: Air conditioning plants & chillers attached to rooftop – bolted to water pipes and stood by own weight of specifically constructed platform = fixtures. Dean v Andrew: large fabricated greenhouse bolted to concrete plinth = not fixture. Hynes v Vaughan: piles of rubbish (mostly soil, rotting vegetation = fixture. AAT Case: operating plant inside car wash = not fixture. Farley v Hawkins: built-in dishwasher & shed = fixtures (shed – bolted into concrete & dishwasher – plumbing connection enough, not electrical connection though). Palumberi v Palumberi: o Carpets & stove = fixtures o Blinds, curtains, large built-in linen cabinet, TV antenna, outside spotlight, light fittings, portable heater = not fixtures.
1.2.3 -
Regard to all factors
Gouldburn CC V McIntosh: court must regard all circumstances incl. relationship between parties when object installed + object & degree of annexation. Farley v Hawkins: varying degree of emphasis on different factors – common sense approach. NAB v Blacker (2000) (FC): no single test, no particular factor has primacy, regard to all circumstances.
T removing fixtures
T can remove fixtures so long as still tenant ! Concept Projects v McKay – Alderson B in Weeton v Woodcock.
2 Licenses -
Mere personal rights – do not fit into any category of rights recognised at law or equity.
4
-
Only remedy damages for breach of contract ! Kerrison v Smith. May yield privileges or permissions to use land OR result in restrictions over use of land.
2.1 Bare -
Promise/permission to use land without consideration. Revokable by will – allowing licensee reasonable time to collect possessions. o Once revoked, licensee trespasser – can be removed by reasonable force ! McPhail v Persons, Names Unknown.
2.2 Contractual -
Promise/permission to use land supported by consideration.
2.2.1 -
Contractual licence not Property right
Revokable by will of landholder even before any time expressly/impliedly fixed in contract. o Even if contracting party done no wrong – landholder still in breach of contract though. Cowell v Rosehill Racecourse: ⇒ P sued D for assault ⇒ Defence was that P was trespassing – D’s agents removed him using only reasonable force. ⇒ P argued he had paid D & in return D had given him leave & licence to enter AND had promised not to revoke licence o HC held for D: o P obtained only contractual right, not property right – ‘the right to see a spectacle cannot in the ordinary sense of legal language be regarded as a property right’ [Latham CJ]. o Contractual right can be revoked in certain circumstances – ‘if the individual racegoer behaves in a disorderly, insulting, or objectionable manner, he may be expelled notwithstanding that he has paid for admission’ [Dixon J]. o Contractual right does not include remedy for assault – Dixon J: P’s legal duty to leave premises after notice of revocation of licence ! only remedy = repayment of admission price – possibly. o Contractual right usually does not provide for specific enforcement in equity.
2.2.1.1 Specific Enforcement -
-
Generally no specific enforcement of rights out of contract ! but EXCEPTIONS: o Heidke v Sydney City Council: " Compensation not adequate remedy for substantial damage inflicted upon licencee by revoking licence • eg. hire of hall – no lease (no exclusive possession), but should disappointed couple only be able to sue for damages if hire cancelled day before wedding day?? " This does not necessarily mean injunction should be granted BUT equitable remedies = discretionary & Hardie AJ exercised his discretion. ENGLAND: quasi-proprietary rights – certain valuable contractual licences specifically enforceable in equity ! not full equitable rights though – no priority (Ashburn v Arnold).
2.3 License & Grant -
Licence required to use grant effectively ! eg. licence to cross land to dig under legal profit. Licence is enforceable as grant is enforceable.
3 Possession -
To recover/gain possession – sue for action for possession under Supreme Court Rules. More important than ownership – adverse possession can extinguish ownership.
5
3.1 Possession as right in itself -
Defined on 2 criteria = exclusive possession: 1. Taking custody of a thing – as regards land: substantial occupation of an area. 2. With animus possidendi – intention to treat the things as one’s own & intention to exclude all other persons including those w/ better claim.
3.1.1 -
Possession of land
Where 2 criteria satisfied, person is in possession – even if wrongfully on land i.e. squatter/trespasser. Can be obtained w/out formality – s.31(c) LPA. Right in rem – good against all the world except person with a better right to possession. Continues until abandoned ! Allen v Roughley. May be assigned ! Asher v Whitlock.
3.2 Lawful Possession 1. By transfer of property/goods 2. Res nullius: something that has never been owned, eg. animals. 3. Abandoned goods/property.
3.2.1
Res Nullius
3.2.1.1 Taking custody – outside scope of strict test -
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Young v Hitchens: ⇒ Y operated fish trawler – had fished partially trapped in net, was about to close net and bring fish aboard. ⇒ H interrupted – injured, killed, caused some fish to be lost. o FC QB held for D: o Patterson J: ‘all but reducing into possession is [not] the same as reducing into possession’. o Lord Denman CJ: ‘P would have had possession but for act of D; but quite certain that he did not have possession… It is impossible to say that he had, until he had actual power over the fish’. o Indicated STRICT TEST: must do everything possible to bring into possession – i.e. fish in possession once loaded onto ship. Pierson v Post: ⇒ Hunter killed fox by shooting it nd ⇒ 2 person picked up dead fox – claimed possession of it. o Held that hunter not in possession of fox as he had not physically picked it up ∴ nd property of 2 person.
3.2.1.2 Taking custody – within scope of strict test + Animus Possidendi -
The Tubantia: ⇒ P set out to find and recover Tubantia – sunken ship. ⇒ P spent large amount of money (£40,000) – engaged steamers, tugs & employed divers, salvage experts. ⇒ Located ship – long process of attempting to recover ship: only 2 divers at a time, bad weather ! no more than 25 working days in 1923. ⇒ D arrived & interrupted P: sent down own divers, attempted to moor on P’s bouy, raise P’s grappling irons & anchor. ⇒ D’s interruption endangered success of P’s expedition. o Engl HC held for P – held P had possession of Tubantia. o No doubt did everything possible in terms of taking custody of wreck: o To say that because work could only be done 2 at a time in short spells with long interruptions, and because access was restricted by weather, P did not do enough for possession, would be ‘very discouraging to the salvage enterprise at a time when it is of great importance’.
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o
3.2.2 -
Also, they did all they could to take custody with animus possidendi – that is, with intention to exclude all others from possession: o ‘They were in a position to prevent any useful work by new-comers’. o ‘No new-comer could have exercised upon the wreck the kind of control the Ps had’. o ‘There was a power to exclude strangers from interfering’.
Abandoned Goods
Abandonment is an objective test: court will determine if reasonable person would have abandoned goods – depends on nature of goods. Armorie v Delamirie: ⇒ Apprentice found jewel while chimney sweeping ⇒ Had it appraised by goldsmith – A rejected goldsmith’s offer, but goldsmith did not return jewel o HC found in favour of A - A had prior possession (original owner unknown) and was protected against all but someone with superior right.
3.2.2.1 Nature of Goods 3.2.2.1.1 Goods found in private premises - Chairman NCA v Flack: ⇒ Police raid on Mrs. F’s home found briefcase full of large amount of money ⇒ Police had warrant to search under suspicion of Mrs. F’s son. ⇒ F declared she had never seen briefcase or money ⇒ F argued she manifested intention to exercise control over any chattel in her premises, even those she was unaware of. o FC held for F – if briefcase had been found by guest or thief surely F would have superior right ∴ police had to give back case after used for evidential purposes. 3.2.2.1.2 Goods found in or attached to land - Waverly Borough Council v Fletcher: ⇒ F found gold brooch nine inches below surface o Applied Donaldson LJ in Parker v British Airways Board referring to objects found in or on land rather than objects found in a building: 1. Where object found in or attached to land, owner/lawful possessor has better title than finder. 2. Where object found unattached on land, owner/lawful possessor only has better title if he exercised such manifest control over land as to indicate intention to control anything found on it. o ∴ since object found in land, manifest intention to control need not be shown, brooch held to be in possession of council.
3.2.3 -
Abandoned Property
Hannah v Peel: property considered abandoned due to absence of control where owner of a house had never entered into possession though the title had devolved to him.
3.2.3.1 Adverse possession -
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Action for possession statute barred if time of action is 15 yrs after dispossession – s.4 Limitation of Actions Act 1936 (SA). Right of owner extinguished after 15 years continuous adverse possession by another or others in combination – s.28 Limitation of Actions Act 1936 (SA). Criteria: nec vi, nec clam, nec precario. o Peaceful (not by force) o Open (not secret) o Without consent or permission of owner/prior possessor. Re Johnson. Adverse possessor is not successor-in-title of prior possessor – holds possessory title ! assignable.
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