3 Subsequent Possession (Adverse Possession, Finding, Gift) 3 Subsequent Possession (Adverse Possession, Finding, Gift)
Once we know who owns property, and what that ownership entails, the next question is how do owners transfer their property to another holder. We begin this discussion with adverse possession, finding and gifts. We will then use estates in land to discuss transfer of property through inheritance. Finally, we will discuss sale and lease (the way that most people transfer most of their real property).
3.1 Adverse Possession 3.1 Adverse Possession
3.1.1 Adverse Possession - Introduction 3.1.1 Adverse Possession - Introduction
By common law or statute, most states recognize ownership rights in one who possesses property as if they were the owner for a requisite period of time. This is the law of adverse possession.
The requirements for a claimant to establish ownership through adverse possession vary considerably among jurisdictions, but in general a possessor must show that her possession meets all or some of the following five elements: (1) the possession must be actual, (2) the possession must be open and notorious, (3) it must be exclusive, (4) it must be continuous throughout a statute of limitations period, and (5) it must be adverse or hostile.
Keep in mind that in general, each of these requirements is aimed at the same thing: that the possessor act as if they are the true owner for a long enough period of time. But let’s take each requirement in turn:
First, the possessor must take actual possession of the land in dispute. This requires that the possessor enter and take possession of the property in the same manner a true owner would. The acts amounting to actual possession depend on the nature of the property. Possession can be shown by living in a home, farming a farm, operating a small business such as a restaurant or store, etc.
Second, possession must be open and notorious, which requires that the possession is as visible and obvious as would be a true owner’s. The idea here is simple: if the true owner was paying attention, as we would expect, she would know the possessor was in possession of the land.
Third, possession must be exclusive, meaning the possession must not be shared with the true owner or the public, other than as a true owner would share possession. The adverse possessor cannot be one of a hundreds who use the property on an equal basis; however, possession need not be so exclusive that the adverse possessor cannot invite friends over. Remember always to ask yourself: how would a normal true owner act?
Fourth, possession must be continuous throughout a statutory limitations period. Again, though, note that possession need only be as continuous as we would expect with regard to a true owner given the property’s nature, character, and location.
Fifth, possession must be adverse and hostile. “Adverse and hostile” does not mean threats and bloodshed. It means one of two things, dependent entirely upon the jurisdiction. In most jurisdictions, “adverse and hostile” refers to the character of the possession with regard to the true owner’s rights. If the character of my possession of your property is incompatible with the notion that you have the right to possess the property, that is adverse and hostile. For example, if you give me permission to possess the property, my possession is not adverse and hostile. On the other hand, if I change the locks, or put up a fence, or put up a ‘no trespassing’ sign, all of those acts are adverse and hostile to the idea that anyone else has rights in the property. In a minority of jurisdictions, the adverse and hostile element can be satisfied only if the adverse possessor truly believes they have the right to possess the property in question. For example, a mistake in a deed or a survey may have led the possessor to believe the property in question in theirs. This version of "adverse" is sometimes referred to as "claim of right." States are not consistent in defining "claim of right". In some states, claim of right is limited it to innocent trespassers, i.e. those believing they are not trespassing.
All states impose a statute of limitations for recovering possession of property from an adverse possessor. If all of the jurisdiction’s requirements for adverse possession have been satisfied for a sufficient period of time — usually between 10 and 20 years — then the true owner is barred from bringing a trespass claim against the adverse possessor, and the adverse possessor becomes the true owner of the property.
Discussion questions: 1) DeSoto argues that adverse possession or "preemption" played an important role in the economic development of the United States. What is his argument, and do you agree? 2) what values support granting title by adverse possession to an innocent trespasser? to an intentional trespasser?
3.1.2 New York Adverse Possession Statutes 3.1.2 New York Adverse Possession Statutes
3.1.2.1 New York Adverse Possession Definitions 3.1.2.1 New York Adverse Possession Definitions
New York Real Property Actions & Proceedings Article 5 - Section 501
§ 501. Adverse possession; defined. For the purposes of this article:
1. Adverse possessor. A person or entity is an “adverse possessor” of
real property when the person or entity occupies real property of
another person or entity with or without knowledge of the other’s
superior ownership rights, in a manner that would give the owner a cause
of action for ejectment.
2. Acquisition of title. An adverse possessor gains title to the
occupied real property upon the expiration of the statute of limitations
for an action to recover real property pursuant to subdivision (a) of
section two hundred twelve of the civil practice law and rules [ten years], provided
that the occupancy, as described in sections five hundred twelve and
five hundred twenty-two of this article, has been adverse, under claim
of right, open and notorious, continuous, exclusive, and actual.
3. Claim of right. A claim of right means a reasonable basis for the
belief that the property belongs to the adverse possessor or property
owner, as the case may be. Notwithstanding any other provision of this
article, claim of right shall not be required if the owner or owners of
the real property throughout the statutory period cannot be ascertained
in the records of the county clerk, or the register of the county, of
the county where such real property is situated, and located by
reasonable means.
3.1.2.2 New York Statute Governing Adverse Possession Under Written Document 3.1.2.2 New York Statute Governing Adverse Possession Under Written Document
New York law draws a distinction between adverse possession that begins with a written instrument, usually an invalid deed, and adverse possession that begins without such a written instrument. Pay careful attention to the language of the statutes and notice the key differences. Why do you think the law draws this distinction?
Real Property Law Section 511
Where the occupant or those under whom the occupant claims entered into the possession of the premises under claim of right, exclusive of any other right, founding the claim upon a written instrument, as being a conveyance of the premises in question, or upon the decree or judgment of a competent court, and there has been a continued occupation and possession of the premises included in the instrument, decree or judgment, or of some part thereof, for ten years, under the same claim, the premises so included are deemed to have been held adversely; except that when they consist of a tract divided into lots, the possession of one lot is not deemed a possession of any other lot.
Section 512. Essentials of adverse possession under written instrument or judgment
For the purpose of constituting an adverse possession, founded upon a written instrument or a judgment or decree, land is deemed to have been possessed and occupied in any of the following cases:
1. Where there has been acts sufficiently open to put a reasonably diligent owner on notice.
2. Where it has been protected by a substantial enclosure . . .
3. Where, although not enclosed, it has been used for the supply of fuel or of fencing timber, either for the purposes of husbandry or for the ordinary use of the occupant.
Where a known farm or a single lot has been partly improved, the portion of the farm or lot that has been left not cleared or not enclosed, according to the usual course and custom of the adjoining country, is deemed to have been occupied for the same length of time as the part improved and cultivated.
3.1.2.3 Adverse Possession Not Under Written Instrument 3.1.2.3 Adverse Possession Not Under Written Instrument
Real Property Law Section 521
Where there has been an actual continued occupation of premises under a claim of right, exclusive of any other right, but not founded upon a written instrument or a judgment or decree, the premises so actually occupied, and no others, are deemed to have been held adversely.
Section 522. Essentials of adverse possession not under written instrument or judgment
For the purpose of constituting an adverse possession not founded upon a written instrument or a judgment or decree, land is deemed to have been possessed and occupied in either of the following cases, and no others:
1. Where there have been acts sufficiently open to put a reasonably diligent owner on notice.
2. Where it has been protected by a substantial enclosure . . .
3.1.2.4 Tolling the Adverse Possession Time Limits: CPLR Section 208 3.1.2.4 Tolling the Adverse Possession Time Limits: CPLR Section 208
This general provision of New York Law tolls statutes of limitation, including the adverse possession period, under certain narrow circumstances. (apologies for the abelist language--it is the language in the statute itself).
If a person entitled to commence an action is under a disability because of infancy or insanity at the time the cause of action accrues, and the time otherwise limited for commencing the action is three years or more and expires no later than three years after the disability ceases, or the person under the disability dies, the time within which the action must be commenced shall be extended to three years after the disability ceases or the person under the disability dies, whichever event first occurs; if the time otherwise limited is less than three years, the time shall be extended by the period of disability. The time within which the action must be commenced shall not be extended by this provision beyond ten years after the cause of action accrues, except, in any action other than for medical, dental or podiatric malpractice, where the person was under a disability due to infancy. This section shall not apply to an action to recover a penalty or forfeiture, or against a sheriff or other officer for an escape.
3.1.2.5 2008 Amendment to NY Law Governing Adverse Possession 3.1.2.5 2008 Amendment to NY Law Governing Adverse Possession
In 2008 the legislature amended both the adverse possession laws by narrowing what constitutes an enclosure for purposes of satisfying the adverse possession standards.
Section 543. Adverse possession; how affected by acts across a boundary line
1. Notwithstanding any other provision of this article, the existence of de minimus non-structural encroachments including, but not limited to, fences, hedges, shrubbery, plantings, sheds and non-structural walls, shall be deemed to be permissive and non-adverse.
2. Notwithstanding any other provision of this article, the acts of lawn mowing or similar maintenance across the boundary line of an adjoining landowner's property shall be deemed permissive and non-adverse.
3.1.3 Mannillo v Gorski 3.1.3 Mannillo v Gorski
NJ 1969
FRED MANNILLO AND ALICE MANNILLO, PLAINTIFFS-RESPONDENTS, v. MARGARET GORSKI, DEFENDANT-APPELLANT.
Argued January 21, 1969
Decided July 7, 1969.
*380Mr. Stanley Yacker argued the cause for respondents (Mr. George E. Ostrov, attorney).
*381Mr. Theodore D. Parsons, Jr. argued the cause for appellant (Messrs. Parsons, Ganzona, Blair & Warren, attorneys) .
The opinion of the court was delivered by
Plaintiffs filed a complaint in the Chancery Division seeking a mandatory and prohibitory injunction against an alleged trespass upon their lands. Defendant counterclaimed for a declaratory judgment which would adjudicate that she had gained title to the disputed premises by adverse possession under N. J. S. 2A:14-6 which provides:
“Every person having any right or title of entry into real estate shall make such entry -within 20 years next after the accrual of such right or title of entry, or be barred therefrom thereafter.”
After plenary trial, judgment was entered for plaintiffs. Mannillo v. Gorski, 100 N. J. Super. 140 (Ch. Div. 1968). Defendant appealed to the Appellate Division. Before argument there, this Court granted defendant’s motion for certification. R. R. 1:10-1A.
The facts are as follows: In 1946, defendant and her husband entered into possession of premises in BLeansburg known as Lot Ho. 1007 in Block 42, under an agreement to purchase. Upon compliance with the terms of said agreement, the seller conveyed said lands to them on April 16, 1952. Defendant’s husband thereafter died. The property consisted of a rectangular lot with a frontage of 25 feet and a depth of 100 feet. Plaintiffs are the owners of the adjacent Lot 1008 in Block 42 of like dimensions, to which they acquired title in 1953.
In the summer of 1946 Chester Gorski, one of the defendant’s sons, made certain additions and changes to the defendant’s house. He extended two rooms at the rear of the structure, enclosed a screened porch on the front, and put a concrete platform with steps on the west side thereof for use in connection with a side door. These steps were built to replace existing wooden steps. In addition, a concrete walk *382was installed from the steps to the end of the house. • In 1953, defendant raised the house. In order to compensate for the resulting added height from the ground, she modified the design of the steps by extending them toward both the front and the rear of the property. She did not change their width.
Defendant admits that the steps and concrete walk encroach upon plaintiffs’ lands to the extent of 15 inches. She contends, however, that she has title to said land by adverse possession. N. J. S. A. 2A :14-6, quoted above. Plaintiffs assert contra-wise that defendant did not obtain title by adverse possession as her possession was not of the requisite hostile nature. They argue that to establish title by adverse possession, the entry into and continuance of possession must be accompanied by an intention to invade the rights of another in the lands, i. e., a knowing wrongful taking. They assert that, as defendant’s encroachment was not accompanied by an intention to invade plaintiffs’ rights in the land, but rather by the mistaken belief that she owned the land, and that therefore an essential requisite to establish title by adverse possession, i. e., an intentional tortious taking, is lacking.
The trial court concluded that defendant had clearly and convincingly proved that her possession of the 15-inch encroachment had existed for more than 20 years before the institution of this suit and that such possession was “exclusive, continuous, uninterrupted, visible, notorious and against the right and interest of the true owner.” There is ample evidence to sustain this finding except as to its visible and notorious nature, of which more hereafter. However, the judge felt impelled by existing New Jersey case law, holding as argued by plaintiffs above, to deny defendant’s claim and entered judgment for plaintiffs. 100 N. J. Super., at 150. The first issue before this Court is, therefore, whether an entry and continuance of possession under the mistaken belief that the possessor has title to the lands involved, exhibits the requisite hostile possession to sustain the obtaining of title by adverse possession.
*383The first detailed statement and acceptance by our then highest court, of the principle that possession as an element of title by adverse possession cannot be bottomed on mistake, is found in Folkman v. Myers, 93 N. J. Eq. 208 (E. & A. 1921), which embraced and followed that thesis as expressed in Myers v. Folkman, 89 N. J. L. 390 (Sup. Ct. 1916). It is not at all clear that this was the common law of this State prior to the latter case. An earlier opinion, Davok v. Nealon, 58 N. J. L. 21 (Sup. Ct. 1895), held for an adverse possessor who had entered under the mistaken belief that he had title without any discussion of his hostile intent. However, the court in Myers v. Folkman, supra, at p. 393, distinguished Eavoclc from the case then under consideration by referring to the fact that “Charles R. Myers disclaims any intent to claim what did not belong to him and apparently never asserted a right to land outside the bounds of his title * * (Emphasis supplied) The factual distinction between the two cases, according to Myers, is that in the later case there was not only an entry by mistake but also an articulated disclaimer of an intent by the entrant to claim title to lands beyond his actual boundary. FolTcman, although apparently relying on Myers, eliminated the requirement of that decision that there be expressed an affirmative disclaimer, and expanded the doctrine to exclude from the category of hostile possessors those whose entry and continued possession was under a mistaken belief that the lands taken were embraced within the description of the possessor’s deed. In so doing, the former Court of Errors and Appeals aligned this State with that branch of a dichotomy which traces its genesis to Preble v. Main Cent. R. Co., 85 Me. 260, 27 A. 149, 21 L. R. A. 829 (Sup. Jud. Ct. Me. 1893) and has become known as the Maine doctrine. In Prelle, the court said at 27 A. at p. 150:
“There is every presumption that the occupancy is in subordination to the true title, and, if the possession is claimed to be adverse, the act of the wrongdoer must be strictly construed, and the character of the possession clearly shown. Roberts v. Richards, 84 *384Me. 1, 24 A. 425, and authorities cited. ‘The intention of the possessor to claim adversely,” says Mellon, C. J., in Ross v. Gould, supra, [5 Me. 204], ‘is an essential ingredient in disseisin.’ And in Worcester v. Lord, supra [56 Me. 266], the court says: ‘To make a disseisin in fact, there must be an intention on the part of the party assuming-possession to assert title in himself.’ Indeed, the authorities all agree that this intention of the occupant to claim the ownership of land not embraced in his title is a necessary element of adverse possession; and in case of occupancy by mistake beyond a line capable of being ascertained this intention to claim title to the extent of the occupancy must appear to be absolute, and not conditional; otherwise the possession will not be deemed adverse to the true owner. It must be an intention to claim title to all land within a certain boundary on the face of the earth, wlfether it shall eventually be found to be the correct one or not. If, for instance, one in ignorance of his actual boundaries takes and holds possession by mistake up to a certain fence beyond his limits, upon the claim and in the belief that it is the true line, with the intention to claim title, and thus, if necessary, to acquire ‘title by possession’ up to that fence, such possession, having the requisite duration and continuity, will ripen into title. Hitehings v. Morrison, 72 Me. 331, is a pertinent illustration of this principle. See, also, Abbott v. Abbott, 51 Me. 575; Ricker v. Hibbard, 73 Me. 105.
If, on the other hand, a party through ignorance, inadvertence, or mistake occupies up to a given fence beyond his actual boundary, because he believes it to be the true line, but has no intention to claim title to that extent if it should be ascertained that the fence was on his neighbor’s land, an indispensable element of adverse possession is wanting. In such a ease the intent to claim title exists only upon the condition that the fence is on the true line. The intention is not absolute, but provisional, and the possession is not adverse.”
This thesis, it is evident, rewards the possessor who entered with a premeditated and predesigned “hostility” — the intentional wrongdoer and disfavors an honest, mistaken entrant. 3 American Law of Properly (Casner ed. 1952), § 104, pp. 773, 785; Bordwell, “Disseisin and Adverse Possession,” 33 Yale L. J. 1, 154 (1923); Darling, “Adverse Possession in Boundary Cases,” 19 Ore. L. Rev. 117 (1940); Sternberg, “The Element of Hostility in Adverse Possession,” 6 Temp. L. Q. 206 (1932); Annotation, “Adverse possession involving ignorance or mistake as to boundaries — modern views,” 80 A. L. R. 2d 1171 (1961). The other branch of the dichotomy relies upon French v. Pearce, 8 Conn. 439 (Sup. Ct. Conn. 1831). The court said *385in Pearce on the question of the subjective hostility of a possessor, at pp. 442, 445-446:
“Into the recesses of his [the adverse claimant’s] mind, his motives or purposes, his guilt or innocence, no enquiry is made. “ * *
<« * H? ❖ * s’: #
* * The very nature of the act [entry and possession] is an assertion of his own title, and the denial of the title of all others. It matters not that the possessor was mistaken, and had he been better informed, would not have entered on the land.” 8 Conn, at 442, 445-46.
The Maine doctrine has been the subject of much criticism in requiring a knowing wrongful taking. The criticism of the Maine and the justification of the Connecticut branch of the dichotomy is well stated in 6 Powell, Real Property (1969) ¶ 1015, pp. 725-728:
“Do the facts of his possession, and of his conduct as if he were the owner, make immaterial his mistake, or does such a mistake prevent the existence of the prerequisite claim of right. The leading case holding the mistake to be of no importance was French v. Pearce, decided in Connecticut in 1831. * * * This viewpoint has gained increasingly widespread acceptance. The more subjectively oriented view regards the ‘mistake’ as necessarily preventing the existence of the required claim of right. The leading case on this position is Preble v. Maine Central R. R., decided in 1893. This position is still followed in a few states. It has been strongly criticized as unsound historically, inexpedient practically, and as resulting in better treatment for a ruthless wrongdoer than for the honest landowner. * * * On the whole the law is simplified, in the direction of real justice, by a following of the Connecticut leadership on this point.”
Again, 4 Tiffany, Real Property (3d ed. 1939), § 1159, pp. 47A-475, criticizes the employment of mistake as negating hostility as follows:
“* * * Adopting this view, it is only in so far as the courts, which assert the possible materiality of the mistake, recognize a contrary presumption, of an intention on the part of the wrongful possessor not to claim title if he is mistaken as to the boundary, that the assertion of the materiality of mistake as to boundary becomes of substantial importance. That the presumption is properly in favor of *386the adverse or hostile character of the possession rather than against it has been previously argued, but whatever presumption in this regard may be recognized, the introduction of the element of mistake in the discussion of the question of adverse possession is, it is submitted, unnecessary and undesirable. In no case except in that of a mistake as to boundary has the element of mistake been regarded as having any significance, and there is no reason for attributing greater weight thereto when the mistake is as to the proper location of a boundary than when it is a mistake as to the title to all the land wrongfully possessed. And to introduce the element of mistake, and then limit its significance by an inquiry as to the intention which the possessor may have as to his course of action in ease there should be a mistake, an intention which has ordinarily no existence whatsoever, is calculated only to cause confusion without, it is conceived, any compensating advantage.”
Our Appellate Division in Predham v. Holfester, 32 N. J. Super. 419 (App. Div. 1954) although acknowledging that the Maine doctrine had been severely criticized felt obliged because of siare decisis to adhere thereto. See also Rullis v. Jacobi, 79 N. J. Super. 525, 528 (Ch. Div. 1963).
We are in accord with the criticism of the Maine doctrine and favor the Connecticut doctrine for the above quoted reasons. As far as can be seen, overruling the former rule will not result in undermining any of the values which stare decisis is intended to foster. The theory of reliance, a cornerstone of siare decisis, is not here apt, as the problem is which of two mistaken parties is entitled to land. Realistically, the true owner does not rely upon entry of the possessor by mistake as a reason for not seeking to recover possession. Whether or not the entry is caused by mistake or intent, the same result eventuates — the true owner is ousted from possession. In either event his neglect to seek recovery of possession, within the requisite time, is in all probability the result of a lack of knowledge that he is being deprived of possession of lands to which he has title.
Accordingly, we discard the requirement that the entry and continued possession must be accompanied by a knowing intentional hostility and hold that any entry and possession for the required time which is exclusive, continuous, uninterrupted, visible and notorious, even though *387under mistaken claim of title, is sufficient to support a claim of title by adverse possession.
However, this conclusion is not dispositive of the matter sub judice. Of equal importance under the present factual complex, is the question of whether defendant’s acts meet the necessary standard of “open and notorious” possession. It must not be forgotten that the foundation of so-called “title by adverse possession” is the failure of the true owner to commence an action for the recovery of the land involved, within the period designated by the statute of limitations. The justifications for the doctrine are aptly stated in 4 Tiffany, Beal Property (3d ed. 1939) § 1134, p. 406 as follows:
“The desirability oí fixing, by law, a definite period within which claims to land must be asserted has been generally recognized, among the practical considerations in favor of such a policy being the prevention of the making of illegal claims after the evidence necessary to defeat them has been lost, and the interest which the community as a whole has in the security, of title. The moral justification of the policy lies in the consideration that one who has reason to know that land belonging to him is in the possession of another, and neglects, for a considerable period of time, to assert his right thereto, may properly be penalized by his preclusion from thereafter asserting such right. It is, apparently, by reason of the demerit of the true owner, rather than any supposed merit in the person who has acquired wrongful possession of the land, that this possession, if continued for the statutory period, operates to debar the former owner of all right to recover the land.”
See also 5 Thompson, Real Property (1957 Replacement), 497.
In order to afford the true owner the opportunity to learn of the adverse claim and to protect his rights by legal action within the time specified by the statute, the adverse possession must be visible and notorious. In 4 Tiffany, supra (Supp. 1969, at 291), the character of possession for that purpose, is stated to be as follows:
“* * * it must be public and based on physical facts, including known and visible lines and boundaries. Acts of dominion over the *388land must be so open and notorious as to put an ordinarily prudent person on notice that the land is in actual possession of another. Hence, title may never be acquired by mere possession, however long continued, which is surreptitious or secret or which is not such as will give unmistakable notice of the nature of the occupant’s claim.”
See also 5 Thompson, supra, § 2546; 6 Powell, Real Property, ¶ 1013 (1969).
Generally, where possession of the land is clear and unequivocal and to such an extent as to be immediately visible, the owner may be presumed to have knowledge of the adverse occupancy. In Foulke v. Bond, 41 N. J. L. 527, 545 (E. & A. 1879), the court said:
“Notoriety of the adverse claim under which possession is held, is a necessary constituent of title by adverse possession, and therefore the occupation or possession must be of that nature that the real owner is presumed to have hnoivn that there was a possession adverse to his title, under which it was intended to make title against him.” (Emphasis supplied)
However, when the encroachment of an adjoining owner is of a small area and the fact of an intrusion is not clearly and self-evidently apparent to the naked eye but requires an on-site survey for certain disclosure as in urban sections where the division line is only infrequently delineated by any monuments, natural or artificial, such a presumption is fallacious and unjustified. See concurring opinion of Judge (now Justice) Francis in Predham v. Holfester, 32 N. J. Super. 419, 428-429. (App. Div. 1954). The precise location of the dividing line is then ordinarily unknown to either adjacent owner and there is nothing on the land itself to show by visual observation that a hedge, fence, wall or other structure encroaches on the neighboring land to a minor extent. Therefore, to permit a presumption of notice to arise in the case of minor border encroachments not exceeding several feet would fly in the face of reality and require the true owner to be on constant alert for possible small encroachments. The only method of certain determination *389■would be by obtaining a survey each time the adjacent owner undertook any improvement at or near the boundary, and this would place an undue and inequitable burden upon the true owner. Accordingly we hereby hold that no presumption of knowledge arises from a minor encroachment along a common boundary. In such a case, only where the true owner has actual knowledge thereof may it be said that the possession is open and notorious.
It is conceivable that the application of the foregoing rule may in some cases result in undue hardship to the adverse possessor who under an innocent and mistaken belief of title has undertaken an extensive improvement which to some extent encroaches on an adjoining property. In that event the situation falls within the category of those cases of which Riggie v. Skill, 9 N. J. Super. 372 (Ch. Div. 1950), affirmed 7 N. J. 268 (1951) is typical and equity may furnish relief. Then, if the innocent trespasser of a small portion of land adjoining a boundary line cannot without great expense remove or eliminate the encroachment, or such removal or elimination is impractical or could be accomplished only with great hardship, the true owner may be forced to convey the land so occupied upon payment of the fair value thereof without regard to whether the true owner had notice of the encroachment at its inception. Of course, such a result should eventuate only under appropriate circumstances and where no serious damage would be done to the remaining land as, for instance, by rendering the balance of the parcel unusable or no longer capable of being built upon by reason of zoning or other restrictions.
We remand the case for trial of the issues (1) whether the true owner had actual knowledge of the encroachment, (2) if not, whether plaintiffs should be obliged to convey the disputed tract to defendant, and (3) if the answer to the latter question is in the affirmative, what consideration should be paid for the conveyance. The remand, of course, contemplates further discovery and a new pretrial.
Remanded for trial in accordance with the foregoing.
*390For remandment — Chief Justice Weintraub and Justices Jacobs, Erancis, Proctor, Hall and Haneman — 6.
Opposed — Hone.
3.1.4 Brand v. Prince 3.1.4 Brand v. Prince
Arthur R. Brand, III, as Trustee, at al., Respondents, v. Richard Prince, Appellant.
Argued November 12, 1974;
decided December 20, 1974.
*635Robert J. McKeegan for appellant.
I. Respondents failed to make out a prima facie case of adverse possession of the parcel in question because their occupancy was not continuous. (Staples v. Schnackenberg, 148 App. Div. 161; Meerhoff v. Rouse, 4 A D 2d 740; Melbourn v. Kukla, 237 App. Div. 834; Moran v. Maguire, 22 Misc 2d 283; Belotti v. Bickhardt, 228 N. Y. 296; Smith v. Reich, 80 Hun 287, 151 N. Y. 642.) II. Respondent has failed to establish title by adverse possession. (Town of Smithtown v. Brooklyn Gun Club, 58 Misc 2d 708; 5 East 73rd v. 11 East 37rd St. Corp., 16 Misc 2d 49, 13 A D 2d 764; Belotti v. Bickhardt, 228 N. Y. 296; Doherty v. Matsell, 119 N. Y. 646; La Frombois v. Jackson, 8 Cow. 588.)
Conrad E. Stearns for respondents.
I. Respondents Brand have established title to the 10-acre parcel in dispute. (Belotti v. Bickhardt, 228 N. Y. 296; Bradt v. Giovannone, 35 A D 2d 322; West v. Tilley, 33 A D 2d 228; Staples v. Schnackenberg, 148 App. Div. 161; Meerhoff v. Rouse, 4 A D 2d 740; Rogoff v. Vanderbilt Sons Corp., 263 App. Div. 841; Moran v. Maguire, 22 Misc 2d 833.) II. Respondents Brand further established proof of an accepted boundary line. (Fisher v. MacVean, 25 A D 2d 575; *636Knowles v. Miskela, 11 A D 2d 589.) III. Appellant Prince has established no title whatsoever in the subject 10 acres.
The parties own adjoining farm lands in the Town of Deposit, Delaware County. A 10-acre parcel of vacant land lying between their properties is the subject of this action to establish title pursuant to article 15 of the Real Property Actions and Proceedings Law.
After a trial without a jury, the County Court adjudged that neither party had established title by deed, that the plaintiff failed to establish title by adverse possession and, implicitly at least, that the defendant was entitled to possession. The Appellate Division unanimously reversed, on the law and the facts, and directed judgment for the plaintiff on the ground that title by adverse possession had been shown. The defendant’s appeal is before us as of right. (CPLR 5601, subd. [a].)
Acquisition of title by adverse possession derives historically from the early English statutes limiting actions to recover land. Truly Statutes of Limitation, their purpose was ‘ ‘ for quieting of men’s estates, and avoiding of suits (Statute of Limitations, 21 Jac. I, ch. 16). The necessary effect, by barring the real owner’s right to recover his property, is, of course, to extinguish his title and make absolute the wrongful possessor’s.
Actual possession adverse to the true owner for the statutory period is required before title will vest. In qualifying the character of the possession required at common law, it is usually said that it must be hostile and under claim of right, actual, open and notorious, exclusive and continuous. (E.g., Belotti v. Bickhardt, 228 N. Y. 296, 302.) Reduced to its essentials, this means nothing more than that there must be possession in fact of a type that would give the owner a cause of action in ejectment against the occupier throughout the prescriptive period. (See, generally, 3 American Law of Property, § 15.3.) To be sure, there are additional statutory requirements as well, whether the possession is under written instrument (Real Property Actions and Proceedings Law, §§ 511, 512) or under claim of title not written (§§ 521, 522).
In the case before -us, we find ample support in the record for the conclusion reached by the Appellate Division that the common-law requirements for acquisition of title by adverse pos*637session were satisfied. There was testimony that from about 1945 or 1946 to 1961, the 10-acre parcel had been in continuous farming use under the direction and control of plaintiff’s predecessors, in conjunction with their tenancy and then ownership of the adjoining parcel. There was additional testimony that when they purchased the adjoining parcel in 1956, the boundary lines, as pointed out, included the disputed 10 acres. The testimony of the attorney for the estate from which they purchased tendedlo confirm this. The plaintiff also accounted for use of the disputed land following his purchase in 1961. He testified that the land was posted and rented to a hunting club and that a part was rented for pasturage and haying. Also, there was evidence of fencing and substantial enclosure in conjunction with all these uses, thus satisfying the statute. (Real Property Actions and Proceedings Law, § 512.)
Because the plaintiff was in possession for less than 15 years,* it was necessary for him to tack his adverse possession to that of his predecessor to satisfy the applicable statutory period. (Former Civ. Prac. Act, § 34.) The question arises whether this was proper because the parcel adversely possessed was not within the description of the deed to the plaintiff.
The rule is that successive adverse possessions of property omitted from a deed description, especially contiguous property, may be tacked if it appears that the adverse possessor intended to and actually turned over possession of the undescribed part with the portion of the land included in the deed. (Belotti v. Bickhardt, 228 N. Y. 296, 303, 308, supra; Adverse Possession — Tacking, Ann., 17 ALR 2d 1128, 1131-1132; 3 Ajnerican Law of Property, § 15.10.) Because the possessory title is entirely an incident of the adverse holder’s possession, transfer of that possession, even by parol, effects a transfer of the possessory interest. (3 American Law of Property, § 15.10.) The circumstances of this case are entirely consistent with a finding that plaintiff’s predecessors intended to and actually turned over their possessory interest in the 10-acre parcel. Hence, the tacking was proper.
*638Accordingly, the order of the Appellate Division should be affirmed.
Chief Judge Breitel and Judges Gabbielli, Jones, Wachtleb, Babin and Stevens concur.
Order affirmed, with costs.
3.1.5. West v Hogan
West v Hogan
2011 NY Slip Op 07086
Decided on October 7, 2011
SUPREME COURT OF THE STATE OF NEW YORK
Appellate Division, Fourth Judicial Department
Plaintiffs commenced this action seeking, inter alia, a determination that they acquired title to certain property by adverse possession.
Plaintiffs own lot 8 on Hiawatha Lake I in the Town of Grieg (Town), and that lot is improved by a camp that was built in approximately 1971. In October 2004 defendants-third-party plaintiffs (defendants) purchased lot 7, which was a vacant lot to the east of lot 8, and they commissioned a survey of the two lots. According to the property line that is depicted in that survey, the east side of plaintiffs' camp on lot 8 encroached on lot 7 by approximately 2½ feet. After purchasing lot 7, Mark Hogan (defendant) began asserting his rights to all of the property to the east of the property line depicted in the survey. Plaintiffs thereafter commissioned their own survey of the two lots and, according to that survey, the property line between lots 7 and 8 was approximately 10 to 12 feet to the east of the property line depicted in defendants' survey. Plaintiffs alleged that they acquired title to the area that fell within the property lines as depicted in the two surveys (hereafter, disputed area).
Supreme Court properly granted that part of plaintiffs' motion for a directed verdict on the issue of adverse possession inasmuch as there was " no rational process by which the fact trier could base a finding in favor of the nonmoving party' " Plaintiffs established by clear and convincing evidence that their possession of the disputed area was "(1) hostile and under claim of right; (2) actual; (3) open and notorious; (4) exclusive; and (5) continuous for the required period . . . [of] at least 10 years."
In addition, plaintiffs established that the disputed area was "usually cultivated or improved" pursuant to RPAPL 522 former (1), which was in effect when plaintiffs commenced this action. "The type of cultivation or improvement sufficient under the statute will vary with the character, condition, location and potential uses for the property".
Plaintiffs, whose parents purchased lot 8 in 1983, and other witnesses testified that plaintiffs mowed and raked the disputed area, placed lawn chairs on it, and used it to access the hatchway doors that were installed in 1988 on the east side of the camp that led to the furnace, hot water heater and shower. Plaintiffs built a memorial for their father on the disputed area in 1992, consisting of a plaque fixed to a rock on a raised flower bed with a hand water pump next to it. Plaintiffs also placed a clothesline and their boats on the disputed area, and the septic system for lot 8 was in the middle of that area. Based on those facts, we conclude that plaintiffs usually cultivated or improved the disputed area.
We reject defendants' contention that plaintiffs failed to establish the required elements of hostility, claim of right or exclusivity. The evidence presented at trial established that plaintiffs and their predecessors used the disputed area exclusively from the time the camp was constructed in 1971 until defendants commissioned the survey in 2004. If all the other elements of adverse possession are established, it is presumed that the use was hostile and under a claim of right. "By definition, a claim of right is adverse to the title owner[s] and also in opposition to the rights of the true owner[s]." Plaintiffs established that they and their predecessors used the disputed area openly and notoriously and that they and their predecessors had been in actual, exclusive, and continuous possession of the disputed area since 1971. Thus, a presumption of hostility under a claim of right arose, and defendants failed to rebut that presumption. The evidence submitted by defendants regarding events that occurred in 1998 is of no moment inasmuch as plaintiffs had already acquired the property by adverse possession at that time.
We reject defendants' further contention that the court erred in awarding plaintiffs punitive damages. "In order to recover punitive damages for trespass on real property, plaintiffs have the burden of proving that the trespasser acted with actual malice involving an intentional wrongdoing, or that such conduct amounted to a wanton, willful or reckless disregard of plaintiffs' rights". Although defendants' survey demonstrated that the disputed area was located within lot 7, it is undisputed that defendant thereafter granted plaintiffs permission to "continue to use th[at] portion of [their] camp on [his] property." Moreover, defendant admitted that he had held a lease option on lot 7 since 1996, and thus it would be reasonable to assume that he was aware of the fact that plaintiffs had exercised rights of ownership over the disputed area since that time. Defendant was also aware of the fact that plaintiffs contested his ownership over the disputed property inasmuch as the Town Code Enforcement Officer noted the "ongoing dispute" between the parties in a letter to defendant in August 2005. Despite granting plaintiffs permission to use their camp and knowing that they contested his ownership of the disputed area, defendant erected a fence that abutted plaintiffs' camp and prevented plaintiffs from accessing their cellar through the hatchway doors that were located in the disputed area. Defendant also padlocked those hatchway doors, moved and demolished portions of the memorial to plaintiffs' father and flipped over boats owned by plaintiffs that were stored in the disputed area.
Once the court determined that the property was owned by plaintiffs by reason of adverse possession, defendant was responsible for any damages that he caused to plaintiffs' property by reason of his trespass, and the jury properly awarded plaintiffs compensatory damages.
It is undisputed that punitive damages may also be awarded for actions based on real property trespass, but we agree with our dissenting colleagues that there does not appear to be any case awarding punitive damages where, as here, the trespass occurred as a result of adverse possession. We note, however, that there is also no case prohibiting the award of punitive damages in such a situation, and we conclude that this is an "exceptional" case where punitive damages are appropriate. We recognize that, at the time defendant committed his malicious acts, he possessed a survey indicating that he owned the disputed area. Nevertheless, defendant was aware that there was a dispute over the property line, and he granted plaintiffs permission to continue to use their camp. Despite those facts, defendant proceeded to destroy plaintiffs' property, including desecrating a memorial, and the evidence strongly suggests that he plugged plaintiffs' vent pipe, rendering their toilet unusable, and entered their cellar to cut and remove the new vent pipe that plaintiffs subsequently installed. Defendant's conduct was intentional, " evince[d] a high degree of moral turpitude and demonstrate[d] such wanton dishonesty as to imply a criminal indifference to [his] civil obligations' " .. At the very least, it was conduct that "amounted to a wanton, willful or reckless disregard of plaintiffs' rights".
We conclude, however, that the award of $200,000 in punitive damages was "so grossly excessive as to show by its very exorbitancy that it was actuated by passion' ". Based on awards in other trespass cases, we conclude that $15,000 is the amount that " bears a reasonable relation to the harm done and the flagrancy of the conduct causing it' ". We therefore modify the order and judgment by vacating the award of punitive damages, and we grant a new trial on punitive damages only unless plaintiffs, within 30 days of service of a copy of the order of this Court with notice of entry, stipulate to reduce that award to $15,000, in which event the order and judgment is modified accordingly.
All concur except Centra and Fahey, JJ., who dissent in part and vote to modify in accordance with the following Memorandum:
We disagree with the majority's conclusion that punitive damages are appropriate in this case. "In order to recover punitive damages for trespass on real property, plaintiffs have the burden of proving that the trespasser acted with actual malice involving an intentional wrongdoing, or that such conduct amounted to a wanton, willful or reckless disregard of plaintiffs' rights". In our view, this is not an "exceptional" case where punitive damages are appropriate. The survey that defendants commissioned gave defendant a reasonable and factual basis to believe that he owned the disputed area.
Notably, once plaintiffs commenced this action and placed defendants on notice that they were asserting title to the disputed area by adverse possession, there were no further incidents of trespass by defendant. We therefore agree with defendants that the award of punitive damages should be vacated.
3.1.6 Hammond v. Baker 3.1.6 Hammond v. Baker
How does the court deal with respondant's argument that the 2008 Amendment to the Adverse Possession laws prevented this claim? What does that tell you about the nature of title acquired by adverse possession?
David Hammond et al., Respondents, v Gordon Baker et al., Appellants.
[916 NYS2d 702]
Appeal from an amended order of the Supreme Court, Ontario County (Frederick G. Reed, A.J.), entered November 16, 2009. The amended order, among other things, awarded plaintiffs a portion of defendants’ land.
It is hereby ordered that the amended order so appealed from is unanimously affirmed without costs.
Memorandum: In this action to quiet title by adverse possession, defendants appeal from an amended order entered following a bench trial awarding plaintiffs a portion of land (hereafter, disputed property) previously purchased by defendants Gordon Baker and Esther Baker. According to defendants, plaintiffs failed to meet their burden of establishing by clear and convincing evidence that, inter alia, their possession of the disputed *1289property was open and notorious (see Walling v Przybylo, 7 NY3d 228, 232 [2006]; West Middlebury Baptist Church v Koester, 50 AD3d 1494 [2008]). Defendants contend that, among other reasons, a hedgerow screened or obscured plaintiffs’ possessory actions. We reject that contention. The record establishes that, during the required period of adverse possession, plaintiffs erected a shed, constructed and reconfigured a stone wall, refurbished a swing set, planted and fertilized grass, and regularly mowed the lawn (see West v Tilley, 33 AD2d 228, 230 [1970], lv denied 27 NY2d 481 [1970]; see also Ray v Beacon Hudson Mtn. Corp., 88 NY2d 154, 160 [1996]; Villani v Holton, 50 AD3d 1543 [2008]; Gorman v Hess, 301 AD2d 683 [2003]). We thus conclude that “even a casual inspection by [the record owner] ... of the boundary lines of the property . . . would have revealed [plaintiffs’] occupation and use” of the disputed property (West, 33 AD2d at 230).
Inasmuch as defendants tacitly concede, and the record establishes, that plaintiffs’ possession and use of the disputed property was also actual, exclusive, and continuous for the required period of at least 10 years (see generally Walling, 7 NY3d at 232), a presumption of hostility under a claim of right arose, satisfying the remaining element of a cause of action for adverse possession (see DeRosa v DeRosa, 58 AD3d 794, 796 [2009], lv denied 12 NY3d 710 [2009]; Parsons v Hollingsworth, 259 AD2d 1054 [1999]). We conclude that defendants failed to rebut the presumption (see Merget v Westbury Props., LLC, 65 AD3d 1102, 1104-1105 [2009]; Parsons, 259 AD2d at 1054; see generally Walling, 7 NY3d at 232-233). “[Défendants’] analysis focuses far too much on [plaintiffs’] state of mind, i.e., what they knew or reasonably should have known by virtue of deed descriptions [and] survey maps . . . and far too little on [plaintiffs’] actions” (Birkholz v Wells, 272 AD2d 665, 666 [2000]).
Under the version of the RPAPL in effect on June 13, 2008, when plaintiffs’ summons and complaint were filed, plaintiffs were also required to show that the disputed property was “usually cultivated or improved” (RPAPL 522 [former (1)]), or “protected by a substantial inclosure” (RPAPL 522 [former (2)]). Defendants err in contending that we should apply the current version of the RPAPL rather than that former version. Indeed, it is of no moment that the current version lacks a requirement of usual cultivation or improvement (see RPAPL 522 [1]), and deems permissive and nonadverse certain “de minimus non-structural encroachments including, but not limited to, fences, hedges, shrubbery, plantings, [and] sheds” *1290(RPAPL 543 [1]), as well as “the acts of lawn mowing or similar maintenance” (RPAPL 543 [2]). As we concluded in Franza v Olin (73 AD3d 44, 47 [2010]), “where title has vested by adverse possession, it may not be disturbed retroactively by newly-enacted or amended legislation ....’’ We further noted in Franza that the 2008 amendments “define[d] as ‘permissive and non-adverse’ . actions that, under the prior statutory law and long-standing principles of common law, were sufficient to obtain title by adverse possession” (id.). Thus, applying the former version of the RPAPL, we note that “[t]he type of cultivation or improvement sufficient under the statute will vary with the character, condition, location and potential uses for the property . . . and need only be consistent with the nature of the property so as to indicate exclusive ownership” (City of Tonawanda v Ellicott Cr. Homeowners Assn., 86 AD2d 118, 121-122 [1982], appeal dismissed 58 NY2d 824 [1983]; see Ray, 88 NY2d at 159-160), and here plaintiffs established that they “usually cultivated or improved” the disputed property in accordance with the nature of the property (see Franza, 73 AD3d at 47; West Middlebury Baptist Church, 50 AD3d at 1495; Villani, 50 AD3d at 1543; Gorman, 301 AD2d at 684-685).
As a final matter, we conclude that Supreme Court’s measurement of the dimensions of the disputed property is supported by the record (see generally Matter of City of Syracuse Indus. Dev. Agency [Alterm, Inc.], 20 AD3d 168, 170 [2005]). Present— Centra, J.P., Fahey, Peradotto, Sconiers and Gorski, JJ.
3.1.7 Walling v Przybylo 3.1.7 Walling v Przybylo
[851 NE2d 1167, 818 NYS2d 816]
G. Scott Walling et al., Respondents, v Paul F. Przybylo et al., Appellants.
Argued April 26, 2006;
decided June 13, 2006
*229POINTS OF COUNSEL
McMillan, Constabile, Maker & Perone, LLP Larchmont (William Maker, Jr., of counsel), for appellants.
I. Knowledge alone is sufficient to defeat an adverse possession claim. (Barnes v Light, 116 NY 34; Van Valkenburgh v Lutz, 304 NY 95; Belotti v Bickhardt, 228 NY 296; Doherty v Matsell, 119 NY 646; Oistacher v Rosenblatt, 220 AD2d 493; Van Gorder v Masterplanned, Inc., 78 NY2d 1106; Joseph v Whitcombe, 279 AD2d 122; Harbor Estates Ltd. Partnership v May, 294 AD2d 399; Oak Ponds v Willumsen, 295 AD2d 587; Bockowski v Malak, 280 AD2d 572.) II. Even under the Third Department rule, plaintiffs were not entitled to summary judgment. (Van Gorder v Masterplanned, Inc., 161 AD2d 920, 78 NY2d 1106.)
G. Scott Walling, Queensbury, respondent pro se, and for Kathleen Walling, respondent.
I. The Third Department was correct in its determination as a matter of law that possessors, whose possession is otherwise open, hostile and continuous for the statutorily-prescribed period of time, can obtain property by adverse possession despite their knowledge that another party held record title to the property. (Matter of Cicio v City of New York, 98 AD2d 38; Van Valkenburgh v Lutz, 304 NY 95; Monnot v Murphy, 207 NY 240; Spiegel v Ferraro, 73 NY2d 622; Belotti v Bickhardt, 228 NY 296; Bernat v Echo Socy. of Niagara Falls, N.Y., 8 AD2d 760, 7 NY2d 914; Barnes v Light, 116 NY 34; Birk*230holz v Wells, 272 AD2d 665; Gerlach v Russo Realty Corp., 264 AD2d 756; Sinicropi v Town of Indian Lake, 148 AD2d 799.) II. Defendants’ claim that the Charles Maine affidavit raised a triable question of fact as to whether plaintiffs acknowledged that the property was not theirs is unpreserved for this Court’s consideration and is in any event both factually and legally erroneous. (Van Gorder v Masterplanned, Inc., 161 AD2d 920, 78 NY2d 1106; Cummins v County of Onondaga, 84 NY2d 322; Guariglia v Blima Homes, 89 NY2d 851; Monnot v Murphy, 207 NY 240; City of Tonawanda v Ellicott Cr. Homeowners Assn., 86 AD2d 118.) III. County Court erred in its conclusion that, on their motion for leave to renew, defendants satisfied the requirement of CPLR 2221 (e) (3) that the motion contain reasonable justification for the failure to present the new facts on the prior motion. (Carota v Wu, 284 AD2d 614; Cerasaro v Cerasaro, 9 AD3d 663; Spa Realty Assoc. v Springs Assoc., 213 AD2d 781; Foitl v G.A.F. Corp., 64 NY2d 911; Henderson v Stilwell, 116 AD2d 861, 68 NY2d 606; Wallin v Wallin, 34 AD2d 870; Rosenman Colin Freund Lewis & Cohen v Edelman, 165 AD2d 533.)
OPINION OF THE COURT
This appeal arises from an action to quiet title by adverse possession. Because actual knowledge that another person is the title owner does not, in and of itself, defeat a claim of right by an adverse possessor, we affirm the order of the Appellate Division awarding summary judgment to plaintiffs.
Plaintiffs and defendants are owners of adjoining residential lots, 22 and 23, located in the Town of Queensbury, County of Warren, New York. The disputed portion of the land is on the northern border of lot 23.
In January 1986, plaintiffs, the Wallings, purchased lot 22 on Butternut Hill Drive. In 1989, the Przybylos purchased lot 23. Both lots were unimproved land on which the parties built homes and swimming pools. On lot 22, the plaintiffs also built a small shed. Even though the defendants purchased their land in 1989, they did not construct their residence until 1991 and did not obtain a certificate of occupancy and move in until May 1994.
In May 1987, plaintiffs bulldozed and deposited fill and topsoil on defendants’ northerly side yard, including the disputed parcel, dug a trench and installed PVC pipe for the purpose of carrying water from plaintiffs’ eaves and downspouts to and *231under the disputed parcel, ultimately discharging the water in and over the disputed parcel. Also prior to defendants’ arrival, plaintiffs constructed an underground dog wire fence to enclose their dog and continuously mowed, graded, raked, planted, and watered the grassy area in dispute. Also, on this portion of the land, the plaintiff installed 69 feet of four-inch PVC pipe in such a way that all of the pipe ran underground but finally surfaced within a “swale.” Defendants admit that the lawn was in part cultivated before they moved in. In 1992, plaintiffs dug a hole near the northwesterly corner of the grassy part of the disputed territory and placed in it a post approximately 10 feet long on which they affixed a birdhouse. Since 1992, the post and birdhouse have remained in place.
In 2004, defendants had the land surveyed and discovered that they had title to the disputed portion of the land. Upon learning of this, plaintiffs brought an action to quiet title. On September 16, 2004, the Warren County Court granted plaintiffs’ motion for summary judgment quieting title to the land. The court stated:
“Based on the facts of this case, it is clear that plaintiffs, as adverse users, entered upon the disputed parcel of property in 1986 under the misapprehension that the parcel was part of their land. Although not conceded by the defendants, it appears that each party was mutually mistaken as to the true location of the boundary line. Plaintiffs cultivated the parcel by having various excavation work performed on said property, by having topsoil installed and by establishing and maintaining a lawn on a significant portion of the dispute [d] parcel, a use consistent with the nature and character of the parcel. Surprisingly, defendants do not allege to have ever mowed the disputed parcel of property at any time.”
On December 15, 2004, after a motion to renew, the motion court modified its decision by denying summary judgment to the plaintiffs. Based upon an affidavit by the previous owner of lot 22, and the 1986 survey of plaintiffs’ property, the motion court found that there were triable issues of fact as to whether plaintiffs had actual knowledge of the true owners prior to making improvements on the land. The Appellate Division modified the order of County Court by reversing the denial of summary judgment to the plaintiffs and granting that motion. The Appel*232late Division determined: “In the absence of an overt acknowledgment, our courts have recognized since Humbert v Trinity Church [24 Wend 587 (1840)], that an adverse possessor’s claim of right or ownership will not be defeated by mere knowledge that another holds legal title” (24 AD3d 1, 4 [3d Dept 2005] [citation omitted]).
Adverse possession must be proven by clear and convincing evidence (Ray v Beacon Hudson Mtn. Corp., 88 NY2d 154, 159 [1996]). “Where there has been an actual continued occupation of premises under a claim of title, exclusive of any other right, but not founded upon a written instrument or a judgment or decree, the premises so actually occupied, and no others, are deemed to have been held adversely” (RPAPL 521).
To establish a claim of adverse possession, the following five elements must be proved: Possession must be (1) hostile and under claim of right; (2) actual; (3) open and notorious; (4) exclusive; and (5) continuous for the required period (Belotti v Bickhardt, 228 NY 296, 302 [1920]; see also Van Valkenburgh v Lutz, 304 NY 95, 99 [1952]; Spiegel v Ferraro, 73 NY2d 622, 624 [1989]; Ray v Beacon Hudson Mtn. Corp., 88 NY2d at 159). Here the required period is at least 10 years (see Ray at 159).
Plaintiffs possessed the disputed parcel of land as early as 1986 in an open and notorious manner, hostile to the interests of the title owners and continuously for 20 years, 10 of which occurred after defendants moved into their residence. “The ultimate element in the rise of a title through adverse possession is the acquiescence of the real owner in the exercise of an obvious adverse or hostile ownership through the statutory period” (see Monnot v Murphy, 207 NY 240, 245 [1913]). It was not until April 21, 2004, close to 10 years after moving into the house and almost 15 years after purchasing the property, that defendants sought to assert their rights over the disputed parcel. The failure to assert their rights in a timely manner prevents defendants from prevailing on this appeal.
Defendants argue that there is no claim of right when the adverse possessor has actual knowledge of the true owner at the time of possession. However, longstanding decisional law does not support this position. The adverse possessor must act under claim of right (see Van Valkenburgh). By definition, a claim of right is adverse to the title owner and also in opposition to the rights of the true owner. Conduct will prevail over knowledge, particularly when the true owners have acquiesced in the *233exercise of ownership rights by the adverse possessors (see Monnot v Murphy, supra). The fact that adverse possession will defeat a deed even if the adverse possessor has knowledge of the deed is not new (see Humbert v Rector, Churchwardens & Vestrymen of Trinity Church, 24 Wend 587, 604 [1840] [“Possession by the defendant with a claim of title for twenty years, can no more be answered by averring that he knew he was wrong, than could the bar of two years, in slander, by the known falsehood of the libel for which it is prosecuted”]). The issue is “actual occupation,” not subjective knowledge (see id. [emphasis omitted]).
“Adverse possession, although not a favored method of procuring title, is a recognized one. It is a necessary means of clearing disputed titles and the courts adopt it and enforce it, because, when adverse possession is carefully and fully proven, it is a means of settling disputed titles and this is desirable” (Belotti v Bickhardt, 228 NY at 308; see generally Hindley v Manhattan Ry. Co., 185 NY 335, 355-356 [1906]).
The facts of Van Valkenburgh v Lutz (304 NY at 99-100) are distinguishable. In Van Valkenburgh, defendant admitted that he was aware of the rightful owner at the time that he built his shed on the disputed property (see 304 NY 95, 99 [1952]). Defendants point to this and other language in Van Valkenburgh that may seem inconsistent with our holding here. We do not, however, read Van Valkenburgh as contradicting the principle, well established since the nineteenth century, that an adverse possessor’s actual knowledge of the true owner is not fatal to an adverse possession claim. The Van Valkenburgh court mentioned several bases for its holding, and any perhaps mistaken dictum in that case did not change the law as Humbert, Monnot and other cases previously stated it.
The evidence in this case was sufficient to establish title by adverse possession and to grant summary judgment to plaintiffs.
Accordingly, the order of the Appellate Division should be affirmed, with costs. The certified question should not be answered upon the ground that it is unnecessary.
Chief Judge Kaye and Judges Ciparick, Rosenblatt, Graffeo, Read and R.S. Smith concur.
Order affirmed, etc.
3.1.8 Howard v Kunto 3.1.8 Howard v Kunto
Washington 1970
[No. 141-41244-2.
Division Two.
October 15, 1970.]
Joseph C. Howard et al., Respondents, v. V. Waldemar Kunto et al., Appellants.
Glenn A. Correa, for appellants.
R. F. Dotsch and Philip W. Richardson, for respondents.
Land surveying is an ancient art but not one free of the errors that often creep into the affairs of men. In this case, we are presented with the question of what happens when the descriptions in deeds do not fit the land the deed holders are occupying. Defendants appeal from a decree quieting title in the plaintiffs of a tract of land on the shore of Hood Canal in Mason County.
At least as long ago as 1932 the record tells us that one McCall resided in the house now occupied by the appellant-defendants, Kunto. McCall bad a deed that described a 50-foot-wide parcel on the shore of Hood Canal. The error1 that brings this case before us is that the 50 feet described in the deed is not the same 50 feet upon which McCall’s house stood. Rather, the described land is an adjacent 50-foot lot directly west of that upon which the house stood. In other words, McCall’s house stood on one lot and his deed described the adjacent lot.2 Several property owners to the west of defendants, not parties to this action, are similarly situated.
Over the years since 1946, several conveyances occurred, using the same legal description and accompanied by a transfer of possession to the succeeding occupants. The Kuntos’ immediate predecessors in interest, Millers, desired to build a dock. To this end, they had a survey performed which indicated that the deed description and the physical occupation were in conformity. Several boundary stakes were placed as a result of this survey and the dock was constructed, as well as other improvements. The house as *395well as the others in the area continued to be used as summer recreational retreats.
The Kuntos then took possession of the disputed property under a deed from the Millers in 1959. In 1960 the respondent-plaintiffs, Howard, who held land east of that of the Kuntos, determined to convey an undivided one-half interest in their land to the Yearlys. To this end, they undertook to have a survey of the entire area made. After expending considerable effort, the surveyor retained by the Howards discovered that according to the government survey, the deed descriptions and the land occupancy of the parties did not coincide. Between the Howards and the Kuntos lay the Moyers’ property. When the Howards’ survey was completed, they discovered that they were the record owners of the land occupied by the Moyers and that the Moyers held record title to the land occupied by the Kuntos. Howard approached Moyer and in return for a conveyance of the land upon which the Moyers’ house stood, Moyer conveyed to the Howards record title to the land upon which the Kunto house stood. Until plaintiffs Howard obtained the conveyance from Moyer in April, 1960, neither Moyer nor any of his predecessors ever asserted any right to ownership of the property actually being possessed by Kunto and his predecessors. This action was then instituted to quiet title in the Howards and Yearlys. The Kuntos appeal from a trial court decision granting this remedy.
At the time this action was commenced on August 19, I960,3 defendants had been in occupance of the disputed property less than a year. The trial court’s reason for denying their claim of adverse possession is succinctly stated in its memorandum opinion: “In this instance, defendants *396have failed to prove, by a preponderance of the evidence, a continuity of possession or estate to permit tacking of the adverse possession of defendants to the possession of their predecessors.”
Finding of fact 64, which is challenged by defendants, incorporates the above concept and additionally finds defendant’s possession not to have been “continuous” because it involved only “summer occupancy.”
Two issues are presented by this appeal:
(1) Is a claim of adverse possession defeated because the physical use of the premises is restricted to summer occupancy?
(2) May a person who receives record title to tract A under the mistaken belief that he has title to tract B (immediately contiguous to tract A) and who subsequently occupies tract B, for the purpose of establishing title to tract B by adverse possession, use the periods of possession of tract B by his immediate predecessors who also had record title to tract A?
In approaching both of these questions, we point out that the evidence, largely undisputed in any material sense, es*397tablished that defendant or his immediate predecessors did occupy the premises, which we have called tract B, as though it was their own for far more than the 10 years as prescribed in RCW 4.16.020.5
We also point out that finding of fact 6 is not challenged for its factual determinations but for the conclusions contained therein to the effect that the continuity of possession may not be established by summer occupancy, and that a predecessor’s possession may not be tacked because a legal “claim of right” did not exist under the circumstances.
We start with the oft-quoted rule that:
[T]o constitute adverse possession, there must be actual possession which is uninterrupted, open and notorious, hostile and exclusive, and under a claim of right made in good faith for the statutory period.
(Italics ours.) Butler v. Anderson, 71 Wn.2d 60, 64, 426 P.2d 467 (1967). Also see Fadden v. Purvis, 77 W.D.2d 22, 459 P.2d 385 (1969) and cases cited therein.
We reject the conclusion that summer occupancy only of a summer beach home destroys the continuity of possession required by the statute. It has become firmly established that the requisite possession requires such possession and dominion “as ordinarily marks the conduct of owners in general, in holding, managing, and caring for property of like nature and condition.” Whalen v. Smith, 183 Iowa 949, 953, 167 N.W. 646 (1918). Also see Mesher v. Connolly, 63 Wn.2d 552, 388 P.2d 144 (1964); Skoog v. Seymour, 29 Wn.2d 355, 187 P.2d 304 (1947); Butler v. Anderson, supra; Fadden v. Purvis, supra.
We hold that occupancy of tract B during the summer *398months for more than the 10-year period by defendant and his predecessors, together with the continued existence of the improvements on the land and beach area, constituted “uninterrupted” possession within this rule. To hold otherwise is to completely ignore the nature and condition of the property. See Fadden v. Purvis, supra.
We find such rule fully consonant with the legal writers on the subject. In F. Clark, Law of Surveying and Boundaries, § 561 (3d ed. 1959) at 565: “Continuity of possession may be established although the land is used regularly for only a certain period each year.” Further, at page 566:
This rule [which permits tacking] is one of substance and not of absolute mathematical continuity, provided there is no break so as to sever two possessions. It is not necessary that the occupant should be actually upon the premises continually. If the land is occupied during the period of time during the year it is capable of use, there is sufficient continuity.
We now reach the question of tacking. The precise issue before us is novel in that none of the property occupied by defendant or his predecessors coincided with the property described in their deeds, but was contiguous.
In the typical case, which has been subject to much litigation, the party seeking to establish title by adverse possession claims more land than that described in the deed. In such cases it is clear that tacking is permitted.
In Buchanan v. Cassell, 53 Wn.2d 611, 614, 335 P.2d 600 (1959) the Supreme Court stated:
This state follows the rule that a purchaser may tack the adverse use of its predecessor in interest to that of his own where the land was intended to be included in the deed between them, but was mistakenly omitted from the description.
El Cerrito, Inc. v. Ryndak, 60 Wn.2d 847, 376 P.2d 528 (1962).
The general statement which appears in many of the cases is that tacking of adverse possession is permitted if the successive occupants are in “privity.” See Faubion v. Elder, 49 Wn.2d 300, 301 P.2d 153 (1956). The deed running *399between the parties purporting to transfer the land possessed traditionally furnishes the privity of estate which connects the possession of the successive occupants. Plaintiff contends, and the trial court ruled, that where the deed does not describe any of the land which was occupied, the actual transfer of possession is insufficient to establish privity.
To assess the cogency of this argument and ruling, we must turn to the historical reasons for requiring privity as a necessary prerequisite to tacking the possession of several occupants. Very few, if any, of the reasons appear in the cases, nor do the cases analyze the relationships that must exist between successive possessors for tacking to be allowed. See W. Stoebuck, The Law of Adverse Possession In Washington in 35 Wash. L. Rev. 53 (1960).
The requirement of privity had its roots in the notion that a succession of trespasses, even though there was no appreciable interval between them, should not, in equity, be allowed to defeat the record title. The “claim of right,” “color of title” requirement of the statutes and cases was probably derived from the early American belief that the squatter should not be able to profit by his trespass.6
However, it appears to this court that there is a substantial difference between the squatter or trespasser and the property purchaser, who along with several of his neighbors, as a result of an inaccurate survey or subdivision,7 occupies and improves property exactly 50 feet to the east of that which a survey some 30 years later demonstrates that they in fact own. It seems to us that there is also a strong public policy favoring early certainty as to the location of land ownership which enters into a proper interpretation of privity.
On the irregular perimeters of Puget Sound exact deter*400mination of land locations and boundaries is difficult and expensive. This difficulty is convincingly demonstrated in this case by the problems plaintiff’s engineer encountered in attempting to locate the corners. It cannot be expected that every purchaser will or should engage a surveyor to ascertain that the beach home he is purchasing lies within the boundaries described in his deed. Such a practice is neither reasonable nor customary. Of course, 50-foot errors in descriptions are devastating where a group of adjacent owners each hold 50 feet of waterfront property.
The technical requirement of “privity” should not, we think, be used to upset the long periods of occupancy of those who in good faith received an erroneous deed description. Their “claim of right” is no less persuasive than the purchaser who believes he is purchasing more land than his deed described.
In the final analysis, however, we believe the requirement of “privity” is no more than judicial recognition of the need for some reasonable connection between successive occupants of real property so as to raise their claim of right above the status of the wrongdoer or the trespasser. We think such reasonable connection exists in this case.
Where, as here, several successive purchasers received record title to tract A under the mistaken belief that they were acquiring tract B, immediately contiguous thereto, and where possession of tract B is transferred and occupied in a continuous manner for more than 10 years by successive occupants, we hold there is sufficient privity of estate to permit tacking and thus establish adverse possession as a matter of law.
We see no reason in law or in equity for differentiating this case from Faubion v. Elder, 49 Wn.2d 300, 301 P.2d 153 (1956) where the appellants were claiming more land than their deed described and where successive periods of occupation were allowed to be united to each other to make up the time of adverse holding. To the same effect see Naher v. Farmer, 60 Wash. 600, 111 P. 768 (1910), and cases cited therein; Buchanan v. Cassell, 53 Wn.2d 611, 335 P.2d 600 *401(1959) and cases cited therein; El Cerrito, Inc. v. Ryndak, 60 Wn.2d 847, 376 P.2d 528 (1962); See 17 A.L.R.2d 1128 (1951). This application of the privity requirement should particularly pertain where the holder of record title to tract B acquired the same with knowledge of the discrepancy.
Judgment is reversed with directions to dismiss plaintiffs’ action and to enter a decree quieting defendants’ title to the disputed tract of land in accordance with the prayer of their cross complaint.
Armstrong, C. J., and Petrie, J., concur.
Petition for rehearing denied November 2, 1970.
Review denied by Supreme Court November 25, 1970.
3.1.9. Children's Magical Garden, Inc. v Norfolk St. Dev., LLC :: 2018 :: New York Appellate Division, First Department Decisions :: New York Case Law :: New York Law :: US Law :: Justia
3.1.10 East 13th Street Homesteaders v. Lower East Side Coalition Housing Development 3.1.10 East 13th Street Homesteaders v. Lower East Side Coalition Housing Development
East 13th Street Homesteaders’ Coalition et al., Respondents, v Lower East Side Coalition Housing Development, Respondent-Defendant, and Deborah Wright, as Commissioner of the Department of Housing Preservation and Development of the City of New York, et al., Appellants.
[646 NYS2d 324]
—Order, Supreme Court, New York County (Elliott Wilk, J.), entered November 13, 1995, which granted petitioners — plaintiffs’ motion for a preliminary injunction to the extent of enjoining respondents-defendants from using self-help means to remove them from the buildings during the pendency of this action, reversed, on the law, the facts, and in the exercise of discretion, without costs, the motion denied and the preliminary injunction is vacated.
The petitioners are occupants of 537, 539, 541, and 545 East 13th Street, who brought this suit to prevent the City from removing them from these buildings to implement a Federally subsidized plan to rehabilitate the buildings and create low-income housing units. A detailed recitation of the facts and procedural history of this action can be found in East 13th St. Homesteaders’ Coalition v Wright (217 AD2d 31). The narrow issue presently on appeal is whether the petitioners should be granted a preliminary injunction barring their eviction pending trial on the issue of whether legal title to the property passed to them through adverse possession.
A preliminary injunction is warranted only upon a showing *623of (1) a likelihood of success on the merits of the underlying claim; (2) irreparable injury absent granting the injunction; and (3) that a balancing of the equities weighs in favor of the injunction (Aetna Ins. Co. v Capasso, 75 NY2d 860, 862; Grant Co. v Srogi, 52 NY2d 496). Because it is a drastic remedy, injunctive relief is reserved for those cases presenting a clear legal right thereto (Matter of McGuinn v City of New York, 219 AD2d 489, lv dismissed in part and denied in part 87 NY2d 966).
Considering that the petitioners claim the apartment buildings upon a theory of adverse possession, they must show that they are likely to prove, by clear and convincing evidence (643 Coster St. Realty v Acsun Realty Co., 174 AD2d 473, 474), that for a period of ten years they actually possessed the subject property at issue, and that their possession was open and notorious, exclusive, continuous, hostile, and under claim of right (Spiegel v Ferraro, 73 NY2d 622; Garrett v Holcomb, 215 AD2d 884, 885; accord, City of Tonawanda v Ellicott Cr. Homeowners Assn., 86 AD2d 118, 120, appeal dismissed 58 NY2d 824).
Our review of the record reveals that petitioners are not likely to prove ten years of actual, continuous, open and notorious possession of the subject buildings (between 1984 and 1994, the period here in question). Since petitioners’ claim of right is not supported by a written instrument, they must show actual, not constructive, possession to establish the requisite temporal element (RPAPL 521; Van Valkenburgh v Lutz, 304 NY 95, 98; Birnbaum v Brody, 156 AD2d 408). The record contains documentary and photographic evidence that the City sealed the buildings numerous times during the claimed period, and that the occupants had to break these seals, sometimes with a sledgehammer, to reenter the buildings.
The petitioners argue that there was a chain of possession of coalition members in all of the buildings during the requisite period to support the requirement of continuous ownership, but the record does not reveal that such successive possession was continued by an unbroken chain of privity such that it could be tacked for adverse possession purposes (Garrett v Holcomb, 215 AD2d 884; Pegalis v Anderson, 111 AD2d 796; Belotti v Bickhardt, 228 NY 296, 306). In fact, there is no evidence of privity between successive occupants of the apartments, nor is there evidence of any intended transfers. In addition, some of the apartments were vacant for some period, such that the vacating occupant and the new occupant apparently had no contact at all (see, Berman v Golden, 131 AD2d 416).
*624In sharp distinction, the claimant in Ray v Beacon Hudson Mtn. Corp. (88 NY2d 154), the case relied upon in the dissent, was the same person who had occupied the property there in issue from 1963 through 1988, a period of twenty-five years. Such is not the case here, where we are presented with an oft-interrupted number of unrelated occupants.
Since petitioners have failed to demonstrate ten years of continuous possession of the subject property, a condition precedent to a claim for adverse possession, the likely success of which is evaluated on this motion, and respondents have countered with proof which persuasively weighs against the petitioners’ claims, the order appealed is reversed, and the motion for a preliminary injunction denied.
Concur — Milonas, J. P., Rosenberger, Williams and Mazzarelli, JJ.
dissents in a memorandum as follows: I would affirm.
In the recent case of Ray v Beacon Hudson Mtn. Corp. (88 NY2d 154, 156), Judge Titone, speaking for a unanimous Court, stated: "In determining whether the common-law requirement of 'continuity of possession’ has been met in an adverse possession claim to an estate in land, a court should consider not only the adverse possessor’s physical presence on the land but also the claimant’s other acts of dominion and control over the premises that would appropriately be undertaken by owners of properties of similar character, condition and location. Thus, we conclude that plaintiffs’ occupancy of the summer cottage in a now-defunct resort town for one month during the summer, coupled with their regular efforts taken to secure and improve the premises and to eject trespassers during their absences for the 10-year statutory period while all neighboring structures collapsed due to vandalism or abandonment, satisfied the element of continuous actual possession.”
This statement is, mutatis mutandis, substantially analogous to our current situation.
Further on in his opinion, Judge Titone states "[P]laintiffs’ installation of utilities and over-all preservation of the cottage, a permanent and substantial structure, in a veritable ghost town, for the duration of the statutory period demonstrates continuous, actual occupation of land by improvement.” (Supra, at 161.)
In the case at bar, there is no doubt that the plaintiffs made improvements and attempted to preserve the buildings involved in an area that could be considered the equivalent of a "ghost town”. Moreover, as in the Ray case, where the occupation was for only one month during the summer, we have *625intermittent occupation by various people who are a part of a cohesive group.
In 1977 and 1978, by in rem proceedings, the City acquired title to the four buildings in question. As the IAS Court found at the hearing it conducted, by the early 1980’s the buildings had become a "neighborhood hazard, housing drug activity, litter and trash”. The City having defaulted on its obligation to maintain order and ensure tranquility, the plaintiffs moved into the vacant buildings.
The City now indicates that it is prepared to gut the buildings and rehabilitate the neighborhood with private funds and Federal tax credits after having failed to do so for many years. This may be a consummation to be wished but not necessarily a firm result. In the interim, the preliminary injunctive relief granted by the IAS Court should be continued, preventing a warrant of eviction, until such time as there can be a definitive conclusion as to the claim that the plaintiffs have adverse possession.
3.2 Bailments, Finding and Gifts 3.2 Bailments, Finding and Gifts
3.2.1 Armory v. Delarimie, (1722) K.B., 1 Strange 505, 93 ER 664 3.2.1 Armory v. Delarimie, (1722) K.B., 1 Strange 505, 93 ER 664
This strange, short case comes to us with virtually no history. In class-stratified 18th century England, it is a mystery how the unnamed chimney sweep was able to obtain council and bring this action. The defendant Paul Delarimie was one of the era's most renowned goldsmiths. As you read it, consider whether we use any of the rules developed to account for discovery, capture, or creation to resolve this dispute.
I would also direct your attention to the interplay between two long-standing maxims from the playground. 1) Finders Keepers, Losers Weepers; and 2) Possession is 9/10th of the Law.
The Opinion
Before Pratt, C.J. at nisi prius.
The plaintiff, being a chimney sweeper's boy, found a jewel, and carried it to the defendant's shop, (who was a goldsmith,) to know what it was, and delivered it into the hands of an apprentice, who, under pretense of weighing it, took out the stones; and, calling to the master to let him know if it came to three half-pence, the master offered the boy the money, who refused to take it, and insisted to have the thing again; whereupon the apprentice delivered him back the socket without the stones. And now in trover against the master these points were ruled:
1. That the finder of a jewel, though he does not by such finding acquire an absolute property right of ownership, yet he has such a property as will enable him to keep it against all but the rightful owner, and consequently may maintain trover.
2. That the action may well lay against the master, who gives a credit to his apprentice, and is answerable for his neglect.
3. As to the value of the jewel, several of the trade were examined to prove what a jewel of the finest water that would fit the docket would be worth; and the chief justice directed the jury that, unless the defendant did produce the jewel, and show it not to be of the finest water, they should presume the strongest against him, and make the value of the best jewels the measure of their damages, which they accordingly did.
3.2.2. Benjamin v. Lindner Aviation
534 N.W.2d 400 (Iowa 1995)
Benjamin v. Lindner Aviation, Inc., 534 N.W.2d 400 (1995)
I. Background Facts and Proceedings.
In April of 1992, State Central Bank became the owner of an airplane when the bank repossessed it from its prior owner who had defaulted on a loan. In August of that year, the bank took the plane to Lindner Aviation for a routine annual inspection. Benjamin worked for Lindner Aviation and did the inspection.
As part of the inspection, Benjamin removed panels from the underside of the wings. Although these panels were to be removed annually as part of the routine inspection, a couple of the screws holding the panel on the left wing were so rusty that Benjamin had to use a drill to remove them. Benjamin testified that the panel probably had not been removed for several years.
Inside the left wing Benjamin discovered two packets approximately four inches high and wrapped in aluminum foil. .... Inside the foil was paper currency, tied in string and wrapped in handkerchiefs. The currency was predominately twenty-dollar bills with mint dates before the 1960s, primarily in the 1950s. The money smelled musty.
Benjamin took one packet to his jeep and then reported what he had found to his supervisor, offering to divide the money with him. However, the supervisor reported the discovery to the owner of Lindner Aviation, William Engle. Engle insisted that they contact the authorities and he called the Department of Criminal Investigation. The money was eventually turned over to the Keokuk police department.
Two days later, Benjamin filed an affidavit with the county auditor claiming that he was the finder of the currency .... Lindner Aviation and the bank also filed claims to the money. ... No one came forward within twelve months claiming to be the true owner of the money See Iowa code § 644.11 (if true owner does not claim property within twelve months, the right to the property vests in the finder).... .
Benjamin filed this declaratory judgment action against Lindner Aviation and the bank to establish his right to the property. The parties tried the case to the court. The district court held that chapter 644 applies only to “lost” property andthe money here was mislaid property. The court awarded the money to the bank, holding that it was entitled to possession of the money to the exclusion of all but the true owner. The court also held that Benjamin was a “finder” within the meaning of chapter 644 and awarded him a ten percent finder’s fee. See id. § 644.13 (a finder of lost property is entitled to ten percent of the value of the lost property as a reward).
Benjamin appealed. He claims that chapter 644 governs the disposition of all found property and any common law distinctions between various types of found property are no longer valid. He asserts alternatively that even under the common law classes of found property, he is entitled to the money he discovered. He claims that the trial court should have found that the property was treasure trove or was lost or abandoned rather than mislaid, thereby entitling the finder to the property.
The bank and Lindner Aviation cross-appealed. Lindner Aviation claims that if the money is mislaid property, it is entitled to the money as the owner of the premises on which the money was found, the hangar where the plane was parked. It argues in the alternative that it is the finder, not Benjamin, because Benjamin discovered the money during his work for Lindner Aviation. The bank asserts in its cross-appeal that it owns the premises where the money was found — -the airplane — and that no one is entitled to a finder’s fee because chapter 644 does not apply to mislaid property....
Whether the money found by Benjamin was treasure trove or was mislaid, abandoned or lost property is a fact question. Therefore, the trial court’s finding that the money was mislaid is binding on us if supported by substantial evidence....
We think there was substantial evidence to find that the currency discovered by Benjamin was mislaid property. ...
The place where Benjamin found the money and the manner in which it was hidden are also important here. The bills were carefully tied and wrapped and then concealed in a location that was accessible only by removing screws and a panel. These circumstances support an inference that the money was placed there intentionally. This inference supports the conclusion that the money was mislaid. Jackson v. Steinberg, 186 Or. 129, 200 P.2d 376, 378 (1948) (fact that $800 in currency was found concealed beneath the paper lining of a dresser indicates that money was intentionally concealed with intention of reclaiming it; therefore, property was mislaid, not lost); ...
The same facts that support the trial court’s conclusion that the money was mislaid prevent us from ruling as a matter of law that the property was lost. Property is not considered lost unless considering the place where and the conditions under which the property is found, there is an inference that the property was left there unintentionally....Contrary to Benjamin’s position the circumstances here do not support a conclusion that the money was placed in the wing of the airplane unintentionally. Additionally, as the trial court concluded, there was no evidence suggesting that the money was placed in the wing by someone other than the owner of the money and that its location was unknown to the owner. For these reasons, we reject Benjamin’s argument that the trial court was obligated to find that the currency Benjamin discovered was lost property.
We also reject Benjamin’s assertion that as a matter of law this money was abandoned property. Both logic and common sense suggest that it is unlikely someone would voluntarily part with over $18,000 with the intention of terminating his ownership. The location where this money was found is much more consistent with the conclusion that the owner of the property was placing the money there for safekeeping.
Finally, we also conclude that the trial court was not obligated to decide that this money was treasure trove. Based on the dates of the currency, the money was no older than thirty-five years. The mint dates, the musty odor and the rusty condition of a few of the panel screws indicate that the money may have been hidden for some time. However, there was no evidence of the age of the airplane or the date of its last inspection. These facts may have shown that the money was concealed for a much shorter period of time.
Moreover, it is also significant that the airplane had a well-documented ownership history. The record reveals that there were only two owners of the plane prior to the bank. One was the person from whom the bank repossessed the plane; the other was the original purchaser of the plane when it was manufactured. Nevertheless, there is no indication that Benjamin or any other party attempted to locate and notify the prior owners of the plane, which could very possibly have led to the identification of the true owner of the money. Under these circumstances, we cannot say as a matter of law that the money meets the antiquity requirement or that it is probable that the owner of the money is not discoverable.
VI.Is the Airplane Or the Hangar the “Premises” Where the Money Was Discovered?
Because the money discovered by Benjamin was properly found to be mislaid property, it belongs to the owner of the premises where it was found. Mislaid property is entrusted to the owner of the premises where it is found rather than the finder of the property because it is assumed that the true owner may eventually recall where he has placed his property and return there to reclaim it.
We think that the premises where the money was found is the airplane, not Lindner Aviation’s hangar where the airplane happened to be parked when the money was discovered. The policy behind giving ownership of mislaid property to the owner of the premises where the property was mislaid supports this conclusion. If the true owner of the money attempts to locate it, he would initially look for the plane; it is unlikely he would begin his search by contacting businesses where the airplane might have been inspected. Therefore, we affirm the trial court’s judgment that the bank, as the owner of the plane, has the right to possession of the property as against all but the true owner.
VII. Is Benjamin Entitled to a Finder’s Fee?
Benjamin claims that if he is not entitled to the money, he should be paid a ten percent finder’s fee under section 644.13. The problem with this claim is that only the finder of “lost goods, money, bank notes, and other things” is rewarded with a finder’s fee under chapter 644. Because the property found by Benjamin was mislaid property, not lost property, section 644.13 does not apply here. The trial court erred in awarding Benjamin a finder’s fee.
AFFIRMED IN PART; REVERSED IN PART.
I respectfully dissent.
The life of the law is logic, it has been said. If so, it should be applied here.
The majority quotes with approval the general rule that whether money found is treasure trove, mislaid, abandoned, or lost property is a fact question. ...In deciding a fact question, we are to consider the facts as known and all reasonable inferences to be drawn from them. ... Thus does logic, reason, and common sense enter in.
After considering the four categories of found money, the majority decides that Benjamin found mislaid money. The result is that the bank gets all the money; Benjamin, the finder, gets nothing. Apart from the obvious unfairness in result, I believe this conclusion fails to come from logical analysis.
Mislaid property is property voluntarily put in a certain place by the owner who then overlooks or forgets where the property is.... The property here consisted of two packets of paper currency totalling $18,910, three to four inches high, wrapped in aluminum foil. Inside the foil, the paper currency, predominantly twenty dollar bills, was tied with string and wrapped in handkerchiefs. ...
These facts satisfy the requirement that the property was voluntarily put in a certain place by the owner. But the second test for determining that property is mislaid is that the owner “overlooks or forgets where the property is.” ... I do not believe that the facts, logic, or common sense lead to a finding that this requirement is met. It is not likely or reasonable to suppose that a person would secrete $18,000 in an airplane wing and then forget where it was.
...
Benjamin followed the law in giving legal notice of finding property. None of the parties dispute this. The suggestion that Benjamin should have initiated a further search for the true owner is not a requirement of the law, is therefore irrelevant, and in no way diminishes Benjamin’s rights as finder.
The scenario unfolded in this case convinces me that the money found in the airplane wing was abandoned. Property is abandoned when the owner no longer wants to possess it. ... The money had been there for years, possibly thirty. No owner had claimed it in that time. No claim was made by the owner after legally prescribed notice was given that it had been found. Thereafter, logic and the law support a finding that the owner has voluntarily relinquished all right, title, and interest in the property. Whether the money was abandoned due to its connection to illegal drug trafficking or is otherwise contraband property is a matter for speculation. In any event, abandonment by the true owner has legally occurred and been established.
I would hold that Benjamin is legally entitled to the entire amount of money that he found in the airplane wing as the owner of abandoned property.
3.2.3 New York Finding Statute 3.2.3 New York Finding Statute
3.2.4 NEW YORK BAILMENT LAW 3.2.4 NEW YORK BAILMENT LAW
a) A bailee shall deliver the goods to a person entitled under a document of title if the person complies with subsections (b) and (c), unless and to the extent that the bailee establishes any of the following:
(1) delivery of the goods to a person whose receipt was rightful as against the claimant;
(2) damage to or delay, loss, or destruction of the goods for which the bailee is not liable;
...
(b) A person claiming goods covered by a document of title shall satisfy the bailee's lien if the bailee so requests or if the bailee is prohibited by law from delivering the goods until the charges are paid.
(c) Unless a person claiming the goods is a person against which the document of title does not confer a right under Section 7-503(a) :
(1) the person claiming under a document shall surrender possession or control of any outstanding negotiable document covering the goods for cancellation or indication of partial deliveries; and
(2) the bailee shall cancel the document or conspicuously indicate in the document the partial delivery or the bailee is liable to any person to which the document is duly negotiated.
3.2.5. Jacobson v Parking Sys. Inc. 13 Misc 3d 1213 (2006)
This case explains how New York Law does and does not create a bailment. The plaintiff in this case was pro se.
Jeff Jacobson, Plaintiff(s) v. Parking Systems Inc. and THE CRESCENT BEACH CLUB, Defendant(s)
Scott Fairgrieve, J.
The plaintiff, Jeff Jacobson, brings this action to recover the value of personal property taken from his automobile, when the vehicle was stolen from the Crescent Beach Club parking lot. At the time, his car was under the care of a valet company, Parking Systems, Inc. The plaintiff had driven his vehicle to the Crescent Country Club on July 4, 2005, and the defendant, Parking Systems Inc., took possession of his keys and valet parked the vehicle. The facts demonstrate that defendant provided plaintiff with a claim ticket, but plaintiff did not retain possession of the ticket. Robert Guest, supervisor and account representative for Parking Systems, Inc., testified that he handles the staffing at the Crescent. Mr. Guest outlined, in his deposition, the procedures followed when a car is valet parked:
MR. DEPAULA:Can you tell us what the procedures are for when a car is taken in at that location?
MR. GUEST:Customer will pull up, we write out a receipt, a description of the car, the car is then parked in a spot. In the event that it couldn't be parked immediately, it would be pulled up to the side and the key may very well be left on the car. It is an enclosed lot, there is only one entrance.
MR. DEPAULA:How many attendants are present?
MR. GUEST:That would depend on the evening. I think this particular case was July 4th, again, I'm approximating, I didn't check the schedule, I would say probably seven, approximately seven.
MR. JACOBSON:There were five that night.
MR. DEPAULA:The receipt that the customer is given, is that preprinted like a card?
MR. GUEST:Yes. That's correct.
MR. DEPAULA:And is there any type of disclaimer on that, printed on this card?
MR. GUEST:Yes, on the bottom of the receipt there is.
MR. DEPAULA:And what is the disclaimer?
MR. GUEST:I can paraphrase it. It essentially says we're not responsible for personal contents.
MR. DEPAULA:Do you have any other knowledge of this incident?
MR. GUEST:It was reported to me, but I wasn't on site that evening.
Both parties agree that plaintiff's vehicle was stolen from the Crescent Beach Club parking lot. The plaintiff testified that he was told that the car keys were not secured in the box where keys were usually stored on the day of the incident. The defendant's supervisor informed plaintiff that when the box is full, the keys are placed on the front driver's side tire. The plaintiff also confirms that he was provided with a claim ticket from the defendant, stating that the parking lot operator is not responsible for personal property left in the car. This course of conduct was standard practice. As a result of the theft of the vehicle, plaintiff's laptop computer valued at $1,207.48 was allegedly stolen from the trunk. In addition, a pair of eye glasses valued at $763.00 were taken from the console located between the two front seats.
ISSUE
Is there any basis for the plaintiff to recover the value of the items of personal property taken from his automobile which was valet parked by Parking Systems, Inc.?
The legal relationship established between the plaintiff and the defendant is that of bailor and bailee (see Motors Ins. Corp. v. American Garages, Inc., 98 Misc 2d 887, 414 NYS2d 841 (App Term, 1st Dept [1979]). Generally, in the case of a bailment, the failure to return the item(s) bailed is prima facie evidence of gross negligence, requiring a bailee to come forward with an explanation (Roth v. Black Star Publ'g Co., 239 AD2d 484 [2d Dept 1997]).
However, in Swarth v. Barney's Clothes, 40 Misc 2d 423, 242 NYS2d 922 (App Term, 1st Dept [1963]), the Court refused to impose liability upon a parking operator when a wallet containing $350.00 was stolen from the vehicle, because no bailment was formed with respect to this item. The rationale expressed by this Court in reaching this decision is as follows:
[w]hen the defendant accepted the plaintiff's automobile for parking, it unquestionably became its bailee and assumed the liability flowing from that relation. It by no means follows, however, that it thereby also undertook the bailment of the wallet, whose presence in the vehicle was neither disclosed nor reasonably to be expected. Delivery, actual or constructive, to the person sought to be held as bailee is not enough to create a bailment; acceptance, actually or constructively, by the latter is equally essential (Osborn v. Cline, 263 NY 434, 437; Cowen v. Pressprich, 202 AD 796, revg. on dissenting opinion of Lehman, J., at Appellate Term, 117 Misc. 663, 676.)
Acceptance is absent when the property is not such as is usually and customarily left with a custodian in like circumstances and no disclosure of this fact is made. In that situation, the person sought to be charged as bailee having no reason to suppose the property has been delivered to him, is liable only if on express notice, "for the bailee cannot by artifice be compelled to assume a liability greater than he intended" (Waters v. Beau Site Co., 114 Misc 65, 67). Self-evidently valuable and easily stolen articles are not left in parked automobiles, and the operator of a parking lot, without notice that they have been so left, is not liable as bailee in respect to them (Liggett v. Glen Oaks Club, 28 NYS2d 84, affd. 263 AD 702, 30 NYS2d 855; Crosby v. 20 Fifth Ave. Hotel Co., 173 Misc 595, mod. 173 Misc 604).
The attempt by the defendant, to limit liability with respect to the personal property by means of the parking receipt, is unenforceable. McKinney's General Obligations Law §5-325(1) mandates that such type of agreements are void and against public policy:
[n]o person who conducts or maintains for hire or other consideration a garage, parking lot or other similar place which has the capacity for the housing, storage, parking, repair or servicing of four or more motor vehicles, as defined by the vehicle and traffic law, may exempt himself from liability for damages for injury to person or property resulting from the negligence of such person, his agents or employees, in the operation or any such vehicle, or in its housing, storage, parking, repair or servicing, or in the conduct or maintenance of such garage, parking lot or other similar place, and, except as hereinafter provided, any agreement so exempting such person shall be void.New York courts have repeatedly refused to enforce disclaimers of liability in parking tickets (see Motors Ins. Corp., supra ; General Motors Acceptance Corp. v. Grafinger, 61 Misc 2d 670, 306 NYS2d 606 (Civ Ct, City of NY [1969]). Even though the disclaimer is invalid, this does not mean that the defendant is liable for the loss of the personal items. To impose such liability upon the defendant, the plaintiff must demonstrate that a bailment was created with respect to the personal property left in the car (see, Id.). The plaintiff has failed to prove such a bailment existed and thus his action must be dismissed for failure to prove a prima facie case.
CONCLUSION
In the case at bar, the plaintiff has failed to prove that a bailment relationship was created with respect to the personal property. Therefore, the case is dismissed with prejudice.
So ordered:
DISTRICT COURT JUDGE
Dated:September 26, 2006
3.2.6 Gruen v. Gruen 3.2.6 Gruen v. Gruen
Some things to consider as you read this case:
1. The Gruen court concluded that Victor intended a present transfer of a future interest, rather than a future transfer of a present interest. What does this mean? Is there any difference between Victor telling Michael: (1) “I give you the painting when I die” and (2) “I give you the painting but I want to keep it until I die”? Note that Michael never took possession of the painting during his father’s life. It remained firmly in his father’s control during moves from New York City to California and finally to Austria. Should this matter?
2. The common law recognized three types of delivery: manual, constructive, and symbolic.
• Manual delivery: This means exactly what you think it means. The donor transfers physical possession of the item to the donee. For example, A manually delivers a book to B by handing it to her. Traditionally, manual delivery of a gift is required if practicable.
• Constructive delivery: Constructive delivery is generally used when physically handing over the item is impractical. Instead, the donor physically transfer an object that provides access to the gifted item. For example, C could hand D the key that opens the item, such as a locked desk or an automobile. While courts prefer manual delivery, constructive delivery is permitted if manual delivery is impracticable or impossible. Was constructive delivery available in Gruen? Could Victor have used this method to deliver the painting?
• Symbolic delivery: For symbolic delivery, the donor physically transfers to the donee an object that represents or symbolizes the gifted item, like the letters in Gruen. For example, a note from E stating that “I give my 100 Bitcoin to F” may be enough to deliver the coins to F. In many jurisdictions, symbolic delivery is allowed only if manual delivery is impracticable or impossible. Bitcoin have no physical existence, so there is no way to manually transfer them. But, what if the Bitcoin were stored on a Trezor cold storage wallet that was in E's pocket as she wrote the note?
Michael S. Gruen, Respondent, v Kemija Gruen, Appellant.
decided July 8, 1986
Argued May 28, 1986;
POINTS OF COUNSEL
Paul G. Whitby and Helen J. Williamson for appellant.
Michael S. Gruen, pro se, and Victor P. Muskin for Michael S. Gruen, respondent.
I. Victor Gruen did not intend to make a present gift. (Martin v Funk 75 NY 134; McCarthy v Pieret, 281 NY 407, 282 NY 800; Deyo v Adams, 178 Misc 859; Young v Young, 80 NY 422; Matter of Clark, 16 Misc 405; Matter of Abramowitz, 38 AD2d 387, 32 NY2d 654.) II. Delivery of the painting was not effected. (Matter of Van Alstyne, 207 NY 298; Matter of Szabo, 10 NY2d 94; McGavic v Cossum, 72 App Div 35; Matter of Nolan, 61 NY2d 856; Matter of Seyffert, 20 Misc 2d 799; Vincent v Rix, 248 NY 76.) III. Acceptance by the donee was not proven. (Beaver v Beaver, 117 NY 421; Matter of Kelsey, 29 AD2d 450, 26 NY2d 792; Matter of Kelly, 285 NY 139; Matter of Mahlstedt, 140 Misc 245; American Church Missionary Socy. v Griswold Coll., 27 Misc 42.) IV. Respondent failed to prove his case by clear and convincing evidence. (Matter of Nolan, 97 AD2d 940; Matter of Abramowitz, 38 AD2d 387; Baird v Mayor of City of N. Y., 96 NY 567; Billington v State of New York, 33 AD2d 822; Smith v Smith, 273 NY 380; Mansbacher v Prudential Ins. Co., 273 NY 140, 274 NY 487; Amend v Hurley, 293 NY 587; Boyd v Boyd, 252 NY 422; Kelly v Watson Elevator Co., 309 NY 49; 63 Bldg. Corp. v Schlacter, 11 AD2d 743.)
I. Victor Gruen intended to make a present and valid gift. (Matter of Brady, 228 App Div 56, 254 NY 590; Berkey v Third Ave. Ry. Co., 244 NY 84; Wellisch v John Hancock Mut. Life Ins. Co., 293 NY 178; Nirenstein v George A. Horvath, Inc., 286 App Div 409; Elyachar v Gerel Corp., 583 F Supp 907; Gannon v McGuire, 160 NY 476; Matter of Hendrick, 163 App Div 413, 214 NY 663.) II. The gift was validly delivered. (Matter of Roosevelt, 190 Misc 341; Matter of Palmer, 117 App Div 360; Matter of Kaphan, 176 Misc 228; Matter of Shelley, 134 Misc 265; Benson v Blue Ridge Coal Corp., 197 Misc 475, 278 App Div 681; Carroll v Smith, 229 App Div 286; Matter of Brandreth, 169 NY 437; Matter of Valentine, 122 Misc 486.) III. The gift was accepted. IV. The factual findings of the court below should not be disturbed. (People ex rel. MacCracken v Miller, 291 NY 55.) V. California law sustains the validity of the gift. (Intercontinental Planning v Daystrom, Inc., 24 NY2d 372; Miller v Miller, 22 NY2d 12; Babcock v Jackson, 12 NY2d 473; Matter of Crichton, 20 NY2d 124; Industrial Credit Co. v J. A. D. Constr. Corp., 29 AD2d 952; Levey v Saphier, 83 Misc 2d 146; Matter of Bulova, 14 AD2d 249; James v Powell, 19 NY2d 249; Petrobras Comercio Internacional v Intershoe, Inc., 77 AD2d 546; Haag v Barnes, 9 NY2d 554; Franklin Natl. Bank v Feldman, 42 Misc 2d 839.) VI. Trial Term materially erred in evidentiary rulings. (Croker v New York Trust Co., 245 NY 17; Nay v Curly, 113 NY 575; Matter of Anooshian, 13 AD2d 626; Matter of Berardini, 238 App Div 433, 263 NY 627; Matter of Wood, 52 NY2d 139; Stoppick v Goldstein, 174 App Div 306; O’Hearn v O’Hearn, 55 AD2d 766; Napiearlski v Pickering, 278 App Div 456; Stutsman v Black, 244 App Div 764; Ranofsky v Frank, 208 App Div 213.) VII. Trial Term erred in denying the motion for a mistrial. (Jacobsen v Jacobsen, 205 Misc 798.)
OPINION OF THE COURT
Simons, J.
Plaintiff commenced this action seeking a declaration that he is the rightful owner of a painting which he alleges his father, now deceased, gave to him. He concedes that he has never had possession of the painting but asserts that his father made a valid gift of the title in 1963 reserving a life estate for himself. His father retained possession of the painting until he died in 1980. Defendant, plaintiff’s stepmother, has the painting now and has refused plaintiff’s requests that she turn it over to him. She contends that the purported gift was testamentary in nature and invalid insofar as the formalities of a will were not met or, alternatively, that a donor may not make a valid inter vivas gift of a chattel and retain a life estate with a complete right of possession. Following a seven-day nonjury trial, Special Term found that plaintiff had failed to establish any of the elements of an inter vivas gift and that in any event an attempt by a donor to retain a present possessory life estate in a chattel invalidated a purported gift of it. The Appellate Division held that a valid gift may be made reserving a life estate and, finding the elements of a gift established in this case, it reversed and remitted the matter for a determination of value (104 AD2d 171). That determination has now been made and defendant appeals directly to this court, pursuant to CPLR 5601 (d), from the subsequent final judgment entered in Supreme Court awarding plaintiff $2,500,000 in damages representing the value of the painting, plus interest. We now affirm.
The subject of the dispute is a work entitled "Schloss Kammer am Attersee II” painted by a noted Austrian modernist, Gustav Klimt. It was purchased by plaintiffs father, Victor Gruen, in 1959 for $8,000. On April 1, 1963 the elder Gruen, a successful architect with offices and residences in both New York City and Los Angeles during most of the time involved in this action, wrote a letter to plaintiff, then an undergraduate student at Harvard, stating that he was giving him the Klimt painting for his birthday but that he wished to retain the possession of it for his lifetime. This letter is not in evidence, apparently because plaintiff destroyed it on instructions from his father. Two other letters were received, however, one dated May 22, 1963 and the other April 1, 1963. Both had been dictated by Victor Gruen and sent together to plaintiff on or about May 22, 1963. The letter dated May 22, 1963 reads as follows:
"Dear Michael:
"I wrote you at the time of your birthday about the gift of the painting by Klimt.
"Now my lawyer tells me that because of the existing tax laws, it was wrong to mention in that letter that I want to use the painting as long as I live. Though I still want to use it, this should not appear in the letter. I am enclosing, therefore, a new letter and I ask you to send the old one back to me so that it can be destroyed.
"I know this is all very silly, but the lawyer and our accountant insist that they must have in their possession copies of a letter which will serve the purpose of making it possible for you, once I die, to get this picture without having to pay inheritance taxes on it.
"Love,
"s/Victor”.
Enclosed with this letter was a substitute gift letter, dated April 1, 1963, which stated:
"Dear Michael:
"The 21st birthday, being an important event in life, should be celebrated accordingly. I therefore wish to give you as a present the oil painting by Gustav Klimt of Schloss Kammer which now hangs in the New York living room. You know that Lazette and I bought it some 5 or 6 years ago, and you always told us how much you liked it.
"Happy birthday again.
"Love,
"s/Victor”.
Plaintiff never took possession of the painting nor did he seek to do so. Except for a brief period between 1964 and 1965 when it was on loan to art exhibits and when restoration work was performed on it, the painting remained in his father’s possession, moving with him from New York City to Beverly Hills and finally to Vienna, Austria, where Victor Gruen died on February 14, 1980. Following Victor’s death plaintiff requested possession of the Klimt painting and when defendant refused, he commenced this action.
The issues framed for appeal are whether a valid inter vivas gift of a chattel may be made where the donor has reserved a life estate in the chattel and the donee never has had physical possession of it before the donor’s death and, if it may, which factual findings on the elements of a valid inter vivas gift more nearly comport with the weight of the evidence in this case, those of Special Term or those of the Appellate Division. Resolution of the latter issue requires application of two general rules. First, to make a valid inter vivas gift there must exist the intent on the part of the donor to make a present transfer; delivery of the gift, either actual or constructive to the donee; and acceptance by the donee (Matter of Szabo, 10 NY2d 94, 98; Matter of Kelly, 285 NY 139,150 [dissenting in part opn]; Matter of Van Alstyne, 207 NY 298, 306; Beaver v Beaver, 117 NY 421, 428). Second, the proponent of a gift has the burden of proving each of these elements by clear and convincing evidence (Matter of Kelley, supra, at p 150; Matter of Abramowitz, 38 AD2d 387, 389-390, affd on opn 32 NY2d 654).
Donative Intent
There is an important distinction between the intent with which an inter vivas gift is made and the intent to make a gift by will. An inter vivas gift requires that the donor intend to make an irrevocable present transfer of ownership; if the intention is to make a testamentary disposition effective only after death, the gift is invalid unless made by will (see, McCarthy v Pieret, 281 NY 407, 409; Gannon v McGuire, 160 NY 476, 481; Martin v Funk, 75 NY 134, 137-138).
Defendant contends that the trial court was correct in finding that Victor did not intend to transfer any present interest in the painting to plaintiff in 1963 but only expressed an intention that plaintiff was to get the painting upon his death. The evidence is all but conclusive, however, that Victor intended to transfer ownership of the painting to plaintiff in 1963 but to retain a life estate in it and that he did, therefore, effectively transfer a remainder interest in the painting to plaintiff at that time. Although the original letter was not in evidence, testimony of its contents was received along with the substitute gift letter and its covering letter dated May 22, 1963. The three letters should be considered together as a single instrument (see, Matter of Brandreth, 169 NY 437, 440) and when they are they unambiguously establish that Victor Gruen intended to make a present gift of title to the painting at that time. But there was other evidence for after 1963 Victor made several statements orally and in writing indicating that he had previously given plaintiff the painting and that plaintiff owned it. Victor Gruen retained possession of the property, insured it, allowed others to exhibit it and made necessary repairs to it but those acts are not inconsistent with his retention of a life estate. Furthermore, whatever probative value could be attached to his statement that he had bequeathed the painting to his heirs, made 16 years later when he prepared an export license application so that he could take the painting out of Austria, is negated by the overwhelming evidence that he intended a present transfer of title in 1963. Victor’s failure to file a gift tax return on the transaction was partially explained by allegedly erroneous legal advice he received, and while that omission sometimes may indicate that the donor had no intention of making a present gift, it does not necessarily do so and it is not dispositive in this case.
Defendant contends that even if a present gift was intended, Victor’s reservation of a lifetime interest in the painting defeated it. She relies on a statement from Young v Young (80 NY 422) that " '[a]ny gift of chattels which expressly reserves the use of the property to the donor for a certain period, or * * * as long as the donor shall live, is ineffectual’ ” (id., at p 436, quoting 2 Schouler, Personal Property, at 118). The statement was dictum, however, and the holding of the court was limited to a determination that an attempted gift of bonds in which the donor reserved the interest for life failed because there had been no delivery of the gift, either actual or constructive (see, id., at p 434; see also, Speelman v Pascal, 10 NY2d 313, 319-320). The court expressly left undecided the question "whether a remainder in a chattel may be created and given by a donor by carving out a life estate for himself and transferring the remainder” (Young v Young, supra, at p 440). We answered part of that question in Matter of Brandreth (169 NY 437, 441-442, supra) when we held that "[in] this state a life estate and remainder can be created in a chattel or a fund the same as in real property”. The case did not require us to decide whether there could be a valid gift of the remainder.
Defendant recognizes that a valid inter vivas gift of a remainder interest can be made not only of real property but also of such intangibles as stocks and bonds. Indeed, several of the cases she cites so hold. That being so, it is difficult to perceive any legal basis for the distinction she urges which would permit gifts of remainder interests in those properties but not of remainder interests in chattels such as the Klimt painting here. The only reason suggested is that the gift of a chattel must include a present right to possession. The application of Brandreth to permit a gift of the remainder in this case, however, is consistent with the distinction, well recognized in the law of gifts as well as in real property law, between ownership and possession or enjoyment (see, Speelman v Pascal, 10 NY2d 313, 318, supra; McCarthy v Pieret, 281 NY 407, 409-411, supra; Matter of Brandreth, 169 NY 437, 442, supra). Insofar as some of our cases purport to require that the donor intend to transfer both title and possession immediately to have a valid inter vivas gift (see, Gannon v McGuire, 160 NY 476, 481, supra; Young v Young, 80 NY 422, 430, supra), they state the rule too broadly and confuse the effectiveness of a gift with the transfer of the possession of the subject of that gift. The correct test is " 'whether the maker intended the [gift] to have no effect until after the maker’s death, or whether he intended it to transfer some present interest’ ” (McCarthy v Pieret, 281 NY 407, 409, supra [emphasis added]; see also, 25 NY Jur, Gifts, § 14, at 156-157). As long as the evidence establishes an intent to make a present and irrevocable transfer of title or the right of ownership, there is a present transfer of some interest and the gift is effective immediately (see, Matter of Brady, 228 App Div 56, 60, affd no opn 254 NY 590; In re Sussman’s Estate, 125 NYS2d 584, 589-591, affd no opn 283 App Div 1051; Matter of Valentine, 122 Misc 486, 489; Brown, Personal Property § 48, at 133-136 [2d ed]; 25 NY Jur, Gifts, § 30, at 173-174; see also, Farmers’ Loan & Trust Co. v Winthrop, 238 NY 477, 485-486). Thus, in Speelman v Pascal (supra), we held valid a gift of a percentage of the future royalties to the play "My Fair Lady” before the play even existed. There, as in this case, the donee received title or the right of ownership to some property immediately upon the making of the gift but possession or enjoyment of the subject of the gift was postponed to some future time.
Defendant suggests that allowing a donor to make a present gift of a remainder with the reservation of a life estate will lead courts to effectuate otherwise invalid testamentary dispositions of property. The two have entirely different characteristics, however, which make them distinguishable. Once the gift is made it is irrevocable and the donor is limited to the rights of a life tenant not an owner. Moreover, with the gift of a remainder title vests immediately in the donee and any possession is postponed until the donor’s death whereas under a will neither title nor possession vests immediately. Finally, the postponement of enjoyment of the gift is produced by the express terms of the gift not by the nature of the instrument as it is with a will (see, Robb v Washington & Jefferson Coll., 185 NY 485, 493).
Delivery
In order to have a valid inter vivas gift, there must be a delivery of the gift, either by a physical delivery of the subject of the gift or a constructive or symbolic delivery such as by an instrument of gift, sufficient to divest the donor of dominion and control over the property (see, Matter of Szabo, 10 NY2d 94, 98-99, supra; Speelman v Pascal, 10 NY2d 313, 318-320, supra; Beaver v Beaver, 117 NY 421, 428-429, supra; Matter of Cohn, 187 App Div 392, 395). As the statement of the rule suggests, the requirement of delivery is not rigid or inflexible, but is to be applied in light of its purpose to avoid mistakes by donors and fraudulent claims by donees (see, Matter of Van Alstyne, 207 NY 298, 308, supra; Matter of Cohn, supra, at pp 395-396; Mechem, Requirement of Delivery in Gifts of Chattels and of Choses in Actions Evidenced by Commercial Instruments, 21 111 L Rev 341, 348-349). Accordingly, what is sufficient to constitute delivery "must be tailored to suit the circumstances of the case” (Matter of Szabo, supra, at p 98). The rule requires that " '[t]he delivery necessary to consummate a gift must be as perfect as the nature of the property and the circumstances and surroundings of the parties will reasonably permit’ ” (id.; Vincent v Rix, 248 NY 76, 83; Matter of Van Alstyne, supra, at p 309; see, Beaver v Beaver, supra, at p 428).
Defendant contends that when a tangible piece of personal property such as a painting is the subject of a gift, physical delivery of the painting itself is the best form of delivery and should be required. Here, of course, we have only delivery of Victor Gruen’s letters which serve as instruments of gift. Defendant’s statement of the rule as applied may be generally true, but it ignores the fact that what Victor Gruen gave plaintiff was not all rights to the Klimt painting, but only title to it with no right of possession until his death. Under these circumstances, it would be illogical for the law to require the donor to part with possession of the painting when that is exactly what he intends to retain.
Nor is there any reason to require a donor making a gift of a remainder interest in a chattel to physically deliver the chattel into the donee’s hands only to have the donee redeliver it to the donor. As the facts of this case demonstrate, such a requirement could impose practical burdens on the parties to the gift while serving the delivery requirement poorly. Thus, in order to accomplish this type of delivery the parties would have been required to travel to New York for the symbolic transfer and redelivery of the Klimt painting which was hanging on the wall of Victor Gruen’s Manhattan apartment. Defendant suggests that such a requirement would be stronger evidence of a completed gift, but in the absence of witnesses to the event or any written confirmation of the gift it would provide less protection against fraudulent claims than have the written instruments of gift delivered in this case.
Acceptance
Acceptance by the donee is essential to the validity of an inter vivas gift, but when a gift is of value to the donee, as it is here, the law will presume an acceptance on his part (Matter of Kelsey, 26 NY2d 792, affg on opn at 29 AD2d 450, 456; Beaver v Beaver, 117 NY 421, 429, supra). Plaintiff did not rely on this presumption alone but also presented clear and convincing proof of his acceptance of a remainder interest in the Klimt painting by evidence that he had made several contemporaneous statements acknowledging the gift to his friends and associates, even showing some of them his father’s gift letter, and that he had retained both letters for over 17 years to verify the gift after his father died. Defendant relied exclusively on affidavits filed by plaintiff in a matrimonial action with his former wife, in which plaintiff failed to list his interest in the painting as an asset. These affidavits were made over 10 years after acceptance was complete and they do not even approach the evidence in Matter of Kelly (285 NY 139, 148-149 [dissenting in part opn], supra) where the donee, immediately upon delivery of a diamond ring, rejected it as "too flashy”. We agree with the Appellate Division that interpretation of the affidavit was too speculative to support a finding of rejection and overcome the substantial showing of acceptance by plaintiff.
Accordingly, the judgment appealed from and the order of the Appellate Division brought up for review should be affirmed, with costs.
Chief Judge Wachtler and Judges Meyer, Kaye, Alexander, Titone and Hancock, Jr., concur.
Judgment appealed from and order of the Appellate Division brought up for review affirmed, with costs.