LLB2220 - Property Law
LLB2220 - Property Law
LLB2220 - Property Law
What is property?
Property as a ‘thing’
- Everyday life, property is often referred to as a thing – a physical object or intangible
item
- The objects we call property would still exist if they were not ‘owned’
- To a lawyer, one way to describe property is a set of rights attaching to a tangible or
intangible thing
Property as a bundle of rights
What are the elements of the bundle of rights?
- Black stone:
o Dominion/control
o Right to exclude others
o ‘the external things of the universe’
o But, Gray also notes elements of the right to transfer (alienate) (at 7)
- Honorés Bundle of Rights (11 elements – see Gray 8-9), including:
o The right to possess i.e. control
o The right to use or enjoy
o The right to exclude others
o The right to transfer
Milirrpum v Nabalco Pty Ltd (1971) 171 FLR 14
(Gove Land Rights Case)
- Decision pre-dates Mabo v Queensland (No 2) (1992) 175 CLR 1
- The Yolgnu people in Arnhem Land claimed traditional lands on the Gove Peninsula
- Nabalco P/L had a mining lease granted by the Cth
- Blackburn J:
o Yolgnu people had a system of law
o The nature of the relationship to the land was not proprietary in nature
because under traditional customs the land could not be alienated, nor was
there a right to exclude others.
Compare to Mabo (No 2) per Brennan J at 36 (see Gray, 32)
- ‘Whether or not land is owned by individual members of a community, a community
which asserts effectively that none but its members has any right to occupy or use
the land has an interest in the land that must be proprietary in nature: there is no
other proprietor. It would be wrong… to point to the inalienability of land by that
community and, by importing definitions of “property” which require alienability
under the municipal laws of our society… to deny that the indigenous people owned
their land.’
Dorman v Rogers (1892) 148 CLR 365
- Is the right to practice as a medical practitioner a property right?
- No property in right to practice in the medical profession
- Per Gibbs CJ (at 367)
o ‘What is valuable is the person’s own earning capacity, which is personal to
him. The right is, of course, not transmissible, and the financial consequences
of possessing the right will depend on the skill, ability and fortune of the
individual concerned.’
People as property
Chattel slavery;
- People were considered a form of personal property (a chattel)
- Could be owned, bought and sold by another person
Slavery now considered abhorrent
Universal Declaration of Human Rights, Article 4;
No one shall be held in slavery or servitude; slavery and the slave trade shall be
prohibited in all their forms
Criminal Code (Cth) s 270.2:
Slavery remains unlawful and its abolition is maintained
Is there property in a living body?
R v Bentham [2005] 1 WLR 1057
- Living body is not capable of being owned
- Charge of possession of a firearm
- Hand under a coat to simulate a firearm to rob someone
- Unsevered hand could not be possessed as it was part of the body – had no
independent existence:
‘One cannot possess something which is not separate and distinct from
oneself. An unsevered hand or finger is part of oneself. Therefore, one
cannot possess it… What is possessed must under the definition be a thing. A
person’s hand or fingers are not a thing.’ (Lord Bingham, 8)
Is there property in the work and skill of a human body?
Doodeward v Spence (1908) 6 CLR 406
- A ‘two-headed child’ was stillborn in New Zealand in 1868
- Doctor took the body and kept it preserved in a bottle in his office
- After the doctor’s death, his effects were sold at auction including the body
- The owner (Doodeward) exhibited the bottle and the body commercially. It was
seized by the police
- Action in conversion and detinue, seeking return of the body
o Conversion – an act intentionally done inconsistent with the owner’s right to
possession – this requires interference with property
o Detinue – Withholding goods afer a lawful demand for their delivery is made
- Griffiths CJ:
o ‘When a person has by the lawful exercise of work or skill so death with a
human body or part of a human body in his lawful possession that it has
acquired some attributes differentiating it from a mere corpse awaiting
burial, he acquires a right to retain possession of it.’
- Court noted bodies in museums and medical cadavers can be property
Is there property in the living tissue – non regenerating tissue of the human body?
- Non-regenerative tissue (organs, limbs)
- Moore r Regents Of the Univerity of California 793 P 2d 479 (1990)
o 1976 – Moore treated at UCLA Medical Centre – samples taken and spleen
removed
o Cells taken from spleen were used to develop a cell line patented by
Respondent
o Moore was asked to return for follow up appointments and provide
additional samples
o Cell line – estimated to be worth $3 Billion
o Moore claimed breach of fiduciary duty by the treating doctor
o Claimed conversion
o Moore claimed a proprietary interest in his cells and ‘each of the products
that an of the defendants might ever create from his cells or the patented cell
line’ (Panelli J)
o The court held Moore had no proprietary interest in his cells
- Roch v Douglas (2000) 22 WAR 331
o Tissue sample preserved in paraffin held to be property
Property in a spectacle?
Victoria Park Racing and Recreation Grounds Co Ltd v Taylor (1937) 58 CLR 479
- Neighbour of racecourse permitted broadcast of races/results from viewing platform
on their land
- Did the racecourse owners have a proprietary right they could sue upon?
- Suit failed – no property in a spectacle
Property in a dance move?
Should royalties be paid to the initial creator of a move for reasons of intellectual property
Week 2 Lecture Notes
Temporary Intrusions;
- Previously: law distinguished between something passing through airspace and
something touching the land
- No longer followed (Davies v Bennison (1927) 22 Tas LR 52)
o Temporary intrusions can be trespass
Permanent Intrusions;
- Kelsen v Imperial Tobacco Co (of Great Britain and Ireland) Ltd [1957] 2 QB 334
o Kelsen leased a one-story shop
o Defendant had a three story building next door
Sign on the building overhung Kelsen’s land by 8 inches
o Court issued an injunction based on trespass requiring sign to be removed
Drones;
- Also known as unmanned aerial vehicles or remotely piloted aircraft
- Use of drones may result in trespass into airspace
o LJP Investment test below
- The Commonwealth Civil Aviation Safety Authority (CASA) regulates the use of
drones
Rights to Minerals
At common law;
- Minerals belong to land owner
- Exceptions belong to the Crown (under the royal prerogative)
o Gold
o Silver
- Important to check wording of original Crown grant and any relevant legislation
- In original Crown grants, if other minerals not reserved, they belong to the land
owner
- Since 1861 all minerals required to be reserved to Crown
- In NSW today, many types of minerals have been subsequently reserved by statute
o Coal Acquisition Act 1981 (NSW)
Natural Rights
- ‘Inherent features of ownership’
- Rights of support
o Right to have the physical support of the land in its natural state maintained
Neighbours will be liable for damages if they remove support through
excavation
Does not apply to construction on the land
o Altered by statute in NSW
Conveyancing Act 1919 (NSW) s 177
Creates a duty of care in negligence
o ‘A duty of care not to do anything on or in relation to
land’ removing support. Extends to buildings on land
- Riparian rights
o The right to have waiter in a river or stream on the land continue to flow,
subject to upstream users’ rights
Riparian rights eliminated by statute in NSW
o Water Management Act 2000 (NSW)
Rights to all water in rivers, lakes and below ground belong to the
Crown (s 392)
Landowners have statutory rights to take water for domestic
consumption and to water livestock (s 52)
Other uses require an access licence or other specified approval
Boundaries
Artificial boundaries
- Determined in relation to some fixed point
o Determined by the terms of the original Crown grant, survey pegs, evidence
of occupation (fences) etc
Natural boundaries
- Determined by a feature of the physical world
o River or tidal boundary at the beach
- Natural boundaries may shift
- Types of Natural boundaries
o Tidal water
Line is the mean high-water mark
Land below that mark is owned by the crown
o Non-tidal water boundaries (e.g. rivers)
Common law; land owner held land up to the middle line of the river
Determined in relation to established banks, not current flow
o Crown Management Act 2016 (NSW) s 13.3
No access or use to a river or lake on the boundary of land
o Accretion or erosion land bounded by water may occur, thus, the legal
boundaries will change with the physical if the change is gradual, not sudden
Fixtures and Chattels
Personal Property v Part of the land
- A chattel is personal property
- Chattel – Chose is possession
o A chose is literally a thing
o A chose in possession is a thing you can possess
- A chattel becomes a fixture by being annexed to the land (when a chattel is annexed
to the land it becomes part of the land (Real property))
o Quicquid plantatur solo, solo cedit
‘What is affixed to the soil becomes part of the soil’ (Minshall v Lloyd
(1873) 2 M&W 459, 459)
o E.g. a plank of wood = a chose in possession
The plan of wood is used to construct a deck on land = becomes a
fixture
Key;
2 elements of the test for distinction between chattel and fixture
- The second element is more important
- Rebuttable presumptions
- Work through the elements numerically
o Be distinct about the tests, do not provide elements of intent in the primary
test
Why it matters
Sale of land: Fixtures pass with the land whereas chattels do not
- Note; contract of sale can provide otherwise if the fixture can be lawfully removed
Inheritance: different beneficiaries may be entitled to a person’s land (including fixtures) vs
chattels
Mortgages: fixtures are part of the security
Tenants: lessees and life tenants
- Who is entitled to fixtures when they leave or die
o If something has become a fixture, and it previously belonged to another
person, property passes to the land owner
Doctrine of Tenure
1066: Norman Conquest of England
- William, Duke of Normandy, invaded and won the battle of Hastings
- Became the first Norman king of England, replacing the prior Anglo-Saxon kings
- Many Anglo-Saxon nobles continued to hold land, swore fealty to William
- Land also redistributed
- Feudal system of land holding – land granted, but service owed in return
Evolution to Tenure
- Only the Crown had allodial title (absolute ownership)
- Others held more limited interests (estates in land)
o Originally with attached services and incidents
- All land belonged to the Crown but was granted back to nobles, who then distributed
grants to others
- All land held ‘of the Crown’
o Crown absolute beneficial owner of all land in the kingdom
- Had been called a legal fiction (see Brennan J in Mabo (No 2))
British Sovereignty: Terra Nullius
- Penal colony established in 1788
- British claimed sovereignty by ‘settlement’
- International law allows sovereignty to be acquired by;
o Conquest
o Cession: transfer of territory from one state to another
o Settlement of territory that was terra nullius = ‘land belonging to no one’
(unoccupied)
o Land could be considered vacant where the inhabitants were considered ‘so
low on the scale of social organisation that their usages and concepts of
rights and duties are not to be reconciled with legal ideas of civilized society’
(Re Southern Rhodesia (1919) AC 211)
Reception of British Law and the Doctrine of Tenure in Australia
- Doctrine of Reception
o Australian Courts Act 1828 (Imp) s 24
All statutes and common law in force in England were applicable to
New South Wales, so far as they could be applied and with
modifications to be made as necessary
- This included the principle that all the lands of Australia were vested in the Crown:
Attorney-General (NSW) v Brown (1847) 2 SCR (NSW) App 30
o Courts considered Crown held absolute beneficial ownership (overturned in
Mabo (No 2))
- Land was granted under ‘Crown Grants’, based on the doctrines of tenure and
estates
o But no services attached
- Other ‘forms of tenure’ developed specific to Australia e.g. pastoral leases
Doctrine of Tenure in Australia
- Doctrine of tenure
o Crown = ultimate owner of all land, has absolute beneficial ownership
o All other “owners” of land hold only more limited interests in the land
(estates), granted to them by Crown (no allodial title)
- Doctrine of tenure foundational in Australian common law (Mabo (No 2))
- But, Crown does not hold absolute beneficial ownership, but rather radical title
o Ability to grant interests in land to others and acquire land
o Note: today, crown grants are made in accordance with Crown lands
legislation: see Crown Land Management Act 2016 (NSW)
- Native Title:
o Recognised by common law, but not part of the doctrine of tenure
o A form of allodial title
Doctrine of Estates
- Under the Doctrine of tenure:
o Crown can grant more limited interests in land = estates
- Estates ‘refer to the right to “hold” the land, or to have possession of it, to the
exclusion of others’ (Brendan Edgeworth, Butt’s Land Law (Thomson Reuters, 7th ed,
2017) 106)
- Under the doctrine of estates, interests in land can be fragmented in time
- Freehold estates
o Fee simple
The ‘largest estate in land’ (Continues indefinitely)
For practical purposes, equivalent to complete ownership
Interests can be disposed of;
During lifetime (inter vivos), or
On death: by will, or by passing to one’s heirs if die intestate
(without a will)
Example wording;
o ‘To A in fee simple’
Fee = can be inherited: simple = unrestricted as to which heirs can
inherit
o Fee tail
An estate that could be passed to lineal heirs only (usually male)
Created by words such as
‘To A and the heirs of his body’
Fee tail would continue as long as there was a direct line of descent
If the fee tail ended, the estate passed back to the grantor of their
heirs
Abolished in NSW: Conveyancing Act 1919 (NSW) ss 19, 19A
Existing fee tails became free simple estates
Attempts to create a fee tail create a fee simple
o Life estate
Ordinary life estate (‘To Amy for life’)
Estate in land that lasts for the life time of the person who
holds it
o Life estate ends on death of life tenant and the estate
reverts to the grantor / their heirs
o Alternatively, the estate might pass to a specified
remainder person (‘To Amy for life, remainder to Henry
in fee simple)
Pur autre vie life estate
The term of a life estate is determined by the life of a person
other than the holder of the life estate
Arises either through
o Terms of the original grant e.g. ‘To Amy during the life
of Clive’; or
o If life tenant has transferred their life estate to
someone else e.g. grant ‘To Amy for life’; Amy transfers
her estate to Deidre
Holder of a life estate can alienate (transfer) the
interest, but estate will still end on the death of
the person stated in the original grant whose
life the estate is being measured against (the
cestui que vie) – here Amy
Corporations can only hold a pur autre vie life estate
- Leaseholds
Native Title
Land and Indigenous Peoples of Australia
- Indigenous occupation of Australia for estimated 60,000 years
- Land has cultural, spiritual, social and economic significance
- Custodians of the land
Denial of Indigenous Land Rights
British ‘Settlement’
- 1768: Captain Cook instructed to claim lands with consent of the Indigenous people
- 1788: British claimed sovereignty of Australia by ‘settlement’
o Basis: extended doctrine of terra nullius ie there was no settled law
o This was not the case
- Consent not sought or obtained
- Arrival of the British led to the dispossession of Indigenous people of their land
through the adoption of terra nullius and the doctrine of tenure
- The ‘legal fiction’ of terra nullius
o ‘A legal fiction flourished that was based on the view that the land belonged
to no one. The fiction was embodied in the doctrine of terra nullius and the
interaction of that doctrine with the doctrine of tenure. The doctrine of
tenure permitted full legal and beneficial ownership of all lands to vest in the
Crown thereby serving to help dispossess Indigenous Australians.’ (Gray, 156;
citations omitted)
- Acts of dispossession, including through force
o ‘The acts and events by which that dispossession in legal theory was carried
into practical effect constitute the darkest aspect of the history of this nation’
(Mabo (No 2), Deane and Gaudron JJ)
Not Uniform
- June 1835, John Batman entered a treaty with Indigenous peoples for 600,000 acres
near present day Melbourne
- August 1835, Governor Bourke declared the treaty ‘void and of no effect’
- 1837 British House of Commons report on Australia;
o ‘It is difficult to reconcile the treatment of Indigenous peoples in the new
colony with feelings of humanity… the native inhabitants of any land have a
right to their own soil. That rights seems not to have been understood in
Australia.’
- Cf approach to treaties in e.g. Canada, New Zealand
Common Law
Gove Case
Milirrpum v Nabalco Pty Ltd (1971) 17 FLR 14
- The Yolgnu people in Arnhem Land claimed traditional lands on the Gove Peninsula
- Nabalco P/L had a mining lease granted by the Commonwealth
Blackburn J;
- Yolgnu people had a system of law
- Any indigenous property rights had been extinguished by the Crown’s absolute
beneficial ownership
- The nature of the relationship to the land was no proprietary in nature
Post-Gove Legislation
The Aboriginal Land Rights Commission (the Woodward Royal Commission) led to the
Aboriginal Land Rights (Northern Territory) Act 1976 (Cth)
- First recognition of Aboriginal land rights
- Property in reserves vested in Aboriginal ownership
- Traditional owners could apply for title to unalienated Crown land