25 Subject Matter of Property 25 Subject Matter of Property

Contact: Jeremy Sheff

25.1 Subject Matter of Property: Introduction 25.1 Subject Matter of Property: Introduction

In this unit we will consider the various types of things that attract the legal label “property.” Let us begin with some examples to pump our intuitions. In light of our discussion of what it means to own something, which of the following things can be usefully thought of as your “property”? 

  • your home or apartment 
  • your car or bike 
  • your computer 
  • the software on your computer 
  • the emails stored on your computer 
  • the emails stored on your cloud-based email service 
  • your bank account 
  • the money in your bank account 
  • the money you lent to your friend that hasn’t been repaid 
  • the money your friend lent to you that you haven’t paid back 
  • the things you bought with the money your friend lent to you that you haven’t paid back 
  • your pet dog 
  • the rats in your animal research lab 
  • your dairy cow 
  • the pig you’re raising for meat 
  • your prescription medications 
  • your doctor’s/pharmacist’s/insurance company’s records of your prescription medications 
  • your handwritten diary 
  •  your unpublished novel 
  • your published novel 
  • your social media profiles and content 
  • your password-protected blog 
  • Does categorizing any of these items as “property” or “not property” meaningfully assist in the analysis of any legal problems? Particularly legal disputes that arise over questions of access to or use of any of these things? Why might we choose to recognize (or refuse to recognize) these or other items as “property”? 

    You may notice there is something of a chicken-and-egg problem here. Is the label “property” a premise or a conclusion? Can we arrive at the label without resorting to circular reasoning? When we say something is a person’s property, or that someone has a “property right,” is that because we have examined the qualities and characteristics of the thing and its relation to the person, and determined that they are all consistent with some coherent notion of property ownership? Or is calling something “property” a mere assertion, unconstrained by circumstances, that we make because we want the consequences of the label “property” to attach to that thing for independent reasons? Is there a difference? Consider the following classic discussion of this question: 

    25.2 Felix Cohen, Transcendental Nonsense and the Functional Approach 25.2 Felix Cohen, Transcendental Nonsense and the Functional Approach

    Felix Cohen, Transcendental Nonsense and the Functional Approach 

    35 COLUM. L. REV. 809, 814-817 (1935) 

    There was once a theory that the law of trade marks and trade-names was an attempt to protect the consumer against the “passing off” of inferior goods under misleading labels. Increasingly the courts have departed from any such theory and have come to view this branch of law as a protection of property rights in divers economically valuable sale devices. In practice, injunctive relief is being extended today to realms where no actual danger of confusion to the consumer is present, and this extension has been vigorously supported and encouraged by leading writers in the field. Conceivably this extension might be justified by a demonstration that privately controlled sales devices serve as a psychologic base for the power of business monopolies, and that such monopolies are socially valuable in modern civilization. But no such line of argument has ever been put forward by courts or scholars advocating increased legal protection of trade names and similar devices. For if they advanced any such argument, it might seem that they were taking sides upon controversial issues of politics and economics. Courts and scholars, therefore, have taken refuge in a vicious circle to which no obviously extra-legal facts can gain admittance. The current legal argument runs: One who by the ingenuity of his advertising or the quality of his product has induced consumer responsiveness to a particular name, symbol, form of packaging, etc., has thereby created a thing of value; a thing of value is property; the creator of property is entitled to protection against third parties who seek to deprive him of his property. This argument may be embellished, in particular cases, with animadversions upon the selfish motives of the infringing defendant, a summary of the plaintiff’s evidence (naturally uncontradicted) as to the amount of money he has spent in advertising, and insinuations (seldom factually supported) as to the inferiority of the infringing defendant’s product. 

    The vicious circle inherent in this reasoning is plain. It purports to base legal protection upon economic value, when, as a matter of actual fact, the economic value of a sales device depends upon the extent to which it will be legally protected. If commercial exploitation of the word “Palmolive” is not restricted to a single firm, the word will be of no more economic value to any particular firm than a convenient size, shape, mode of packing, or manner of advertising, common in the trade. Not being of economic value to any particular firm, the word would be regarded by courts as “not property,” and no injunction would be issued. In other words, the fact that courts did not protect the word would make the word valueless, and the fact that it was valueless would then be regarded as a reason for not protecting it. Ridiculous as this vicious circle seems, it is logically as conclusive or inconclusive as the opposite vicious circle, which accepts the fact that courts do protect private exploitation of a given word as a reason why private exploitation of that word should be protected. 

    The circularity of legal reasoning in the whole field of unfair competition is veiled by the “thingification” of property. Legal language portrays courts as examining commercial words and finding, somewhere inhering in them, property rights. It is by virtue of the property right which the plaintiff has acquired in the word that he is entitled to an injunction or an award of damages. According to the recognized authorities on the law of unfair competition, courts are not creating property, but are merely recognizing a pre-existent Something. 

    The theory that judicial decisions in the field of unfair competition law are merely recognitions of a supernatural Something that is immanent in certain trade names and symbols is, of course, one of the numerous progeny of the theory that judges have nothing to do with making the law, but merely recognize pre-existent truths not made by mortal men. The effect of this theory, in the law of unfair competition as elsewhere, is to dull lay understanding and criticism of what courts do in fact.

    What courts are actually doing, of course, in unfair competition cases, is to create and distribute a new source of economic wealth or power. Language is socially useful apart from law, as air is socially useful, but neither language nor air is a source of economic wealth unless some people are prevented from using these resources in ways that are permitted to other people. That is to say, property is a function of inequality. If courts, for instance, should prevent a man from breathing any air which had been breathed by another (within, say, a reasonable statute of limitations), those individuals who breathed most vigorously and were quickest and wisest in selecting desirable locations in which to breathe (or made the most advantageous contracts with such individuals) would, by virtue of their property right in certain volumes of air, come to exercise and enjoy a peculiar economic advantage, which might, through various modes of economic exchange, be turned into other forms of economic advantage, e.g. the ownership of newspapers or fine clothing. So, if courts prevent a man from exploiting certain forms of language which another has already begun to exploit, the second user will be at the economic disadvantage of having to pay the first user for the privilege of using similar language or else of having to use less appealing language (generally) in presenting his commodities to the public. 

    Courts, then, in establishing inequality in the commercial exploitation of language are creating economic wealth and property, creating property not, of course, ex nihilo, but out of the materials of social fact, commercial custom, and popular moral faiths or prejudices. It does not follow, except by the fallacy of composition, that in creating new private property courts are benefiting society. Whether they are benefiting society depends upon a series of questions which courts and scholars dealing with this field of law have not seriously considered. Is there, for practical purposes, an unlimited supply of equally attractive words under which any commodity can be sold, so that the second seller of the commodity is at no commercial disadvantage if he is forced to avoid the word or words chosen by the first seller? If this is not the case, i.e. if peculiar emotional contexts give one word more sales appeal than any other word suitable for the same product, should the peculiar appeal of that word be granted by the state, without payment, to the first occupier? Is this homestead law for the English language necessary in order to induce the first occupier to use the most attractive word in selling his product? If, on the other hand, all words are originally alike in commercial potentiality, but become differentiated by advertising and other forms of commercial exploitation, is this type of business pressure a good thing, and should it be encouraged by offering legal rewards for the private exploitation of popular linguistic habits and prejudices? To what extent is differentiation of commodities by trade names a help to the consumer in buying wisely? To what extent is the exclusive power to exploit an attractive word, and to alter the quality of the things to which the word is attached, a means of deceiving consumers into purchasing inferior goods? 

    Without a frank facing of these and similar questions, legal reasoning on the subject of trade names is simply economic prejudice masquerading in the cloak of legal logic. The prejudice that identifies the interests of the plaintiff in unfair competition cases with the interests of business and identifies the interests of business with the interests of society, will not be critically examined by courts and legal scholars until it is recognized and formulated. It will not be recognized or formulated so long as the hypostatization of “property rights” conceals the circularity of legal reasoning. 

    25.3 Hinman v. Pacific Air Transport 25.3 Hinman v. Pacific Air Transport

    Circuit Court of Appeals, Ninth Circuit.

    Nos. 7810, 7811.

    HINMAN et al. v. PACIFIC AIR TRANSP­ORT.* SAME v. UNITED AIR LINES TRANSPORT CORPORATION.

    July 20, 1936.

    Bruce Murchison and M. L. Clopton, both of Los Angeles, Cal., for appellants.

    Newlin & Ashburn, Gurney E. Newlin, Paul Sandmeyer, and George W. Tacka­bury, all of Los Angeles, Cal., for appel­lees.

    MATHEWS, Circuit Judge, dissenting.

    Before WILBUR, MATHEWS, and HANEY, Circuit Judges.

    *

    Rehearing denied Sept. 21, 1936.

    HANEY, Circuit Judge.

    From decrees sustaining motions to dismiss filed by defendants in two suits, appellants appeal and bring for review by this court the rights of a landowner in con­nection with the flight of aircraft above his land. Appellant filed one bill against Pacific Air Transport, an Oregon corpora­tion, and another bill against United Air Lines Transport Corporation, a Delaware corporation, in each of which the allega­tions are nearly identical. Although two appeals are before the court, briefs filed discuss both cases, and therefore we will consider them together.

    Appellants filed a first amended bill against Pacific Air Transport after a mo­tion to dismiss the original bill had been sustained, and after a motion to dismiss the first amended bill had been sustained, they filed their second amended bill, which is the bill before this court. In the United Air Lines Transport Corporation case, the first amended bill is before this court, there having been filed an original bill, which was dismissed.

    Appellants allege, in the bills under con­sideration, facts showing diversity of citi­zenship and that the amount in controversy exceeds $3,000 exclusive of interest and costs; that they are the owners and in pos­session of 72 1/2 acres of real property in the city of Burbank, Los Angeles county, Cal., “together with a stratum of air-space superjacent to and overlying said tract * * * and extending upwards * * * to such an altitude as plaintiffs * * * may reasonably expect now or hereafter to utilize, use or occupy said airspace. With­out limiting said altitude or defining the upward extent of said stratum of airspace or of plaintiff’s ownership, utilization and possession thereof, plaintiffs allege that they * * * may reasonably expect now and hereafter to utilize, use and oc­cupy said airspace and each and every por­tion thereof to an altitude of not less than 150 feet above the surface of the land * * *." The reasonable value of the property is alleged to be in excess of $300,000.

    It is then alleged that defendants are engaged in the business of operating a commercial air line, and that at all times “after the month of May, 1929, defendants daily, repeatedly and upon numerous occa­sions have disturbed, invaded and tres­passed upon the ownership and possession of plaintiffs’ tract”; that at said times de­fendants have operated aircraft in, across, and through said airspace at altitudes less than 100 feet above the surface; that plaintiffs notified defendants to desist from trespassing on said airspace; and that de­fendants have disregarded said notice, un­lawfully and against the will of plaintiffs, and continue and threaten to continue such trespasses.

    It is further alleged: “That in operat­ing aircraft as aforesaid, defendants fol­lowed and on substantially all occasions herein referred to have followed one of two courses, ways and paths in, across and through said airspace, which by reason of constant and repeated user by defendants have become and are well defined by con­stant user * * *." Thereafter the first of such courses, designated “A,” is de­scribed with particularity with regard to the surface boundaries of plaintiffs’ land; course “A” is averred to be 75 yards wide over the north side of plaintiffs’ land the place of entry, the lowest boundary of the course above the surface to be 25 feet, and the highest boundary to be 175 feet above the surface. At the south side of plaintiffs’ land, the course is said to be 100 yards wide, the lowest boundary to be 5 feet above the surface, and the highest bound­ary to be 45 feet above the surface.

    The second course is also described par­ticularly, and although there is some differ­ence in the width of the course, the height above the surface is the same as course A.

    It is alleged that the direction of the breeze determines which course defendants use on a particular occasion, and that de­fendants have used such courses since the time of the notice given them by plaintiffs, openly, notoriously, and under claim of right adverse to plaintiffs.

    In the last paragraph it is alleged that the remedy at law is inadequate; that un­less defendants are enjoined they will re­peat the said trespasses and will impose a servitude upon plaintiffs’ utilization, use, occupancy, and enjoyment of the surface of their land to their irreparable injury; and that injunctive relief is necessary to prevent a multiplicity of legal proceedings.

    In each bill under consideration, there is a second cause of action. The allega­tions of the first cause, except the last para­graph, are adopted in the second cause, and it is further alleged that the reasonable val­ue of the utilization, use, and occupancy of said courses is $1,500 per month; that “by reason of defendants’ invasion and dis­turbance of and trespass upon plaintiffs’ ownership and possession of said airspace, plaintiffs have suffered damage” in the sum of $90,000.

    The prayer asks an injunction restrain­ing the operation of the aircraft through the airspace over plaintiffs’ property and for $90,000 damages in each of the cases.

    Appellees contend that it is settled law in California that the owner of land has no property rights in superjacent air­space, either by code enactments or by ju­dicial decrees and that the ad coelum doc­trine does not apply in California. We have examined the statutes of California, particularly California Civil Code, § 659 and § 829, as well as Grandona v. Lovdal, 78 Cal. 611, 21 P. 366, 12 Am.St.Rep. 121. Wood v. Moulton, 146 Cal. 317, 80 P. 92; and Kafka v. Bozio, 191 Cal. 746, 218 P. 753, 29 A.L.R. 833, but we find nothing therein to negative the ad coelum formula. Furthermore, if we should adopt this for­mula as being the law, there might be seri­ous doubt as to whether a state statute could change it without running counter to the Fourteenth amendment to the Constitu­tion of the United States. If we could accept and literally construe the ad coelum doctrine, it would simplify the solution of this case; however, we reject that doc­trine. We think it is not the law, and that it never was the law.

    This formula “from the center of the earth to the sky” was invented at some re­mote time in the past when the use of space above land actual or conceivable was confined to narrow limits, and simply meant that the owner of the land could use the overlying space to such an extent as he was able, and that no one could ever inter­fere with that use.

    This formula was never taken literally, but was a figurative phrase to express the full and complete ownership of land and the right to whatever superjacent airspace was necessary or convenient to the enjoy­ment of the land.

    In applying a rule of law, or construing a statute or constitutional provision, we cannot shut our eyes to common knowl­edge, the progress of civilization, or the ex­perience of mankind. A literal construc­tion of this formula will bring about an absurdity. The sky has no definite loca­tion. It is that which presents itself to the eye when looking upward; as we approach it, it recedes. There can be no ownership of infinity, nor can equity prevent a sup­posed violation of an abstract conception.

    The appellants’ case, then, rests upon the assumption that as owners of the soil they have an absolute and present title to all the space above the earth’s surface, owned by them, to such a height as is, or may become, useful to the enjoyment of their land. This height, the appellants as­sert in the bill, is of indefinite distance, but not less than 150 feet.

    If the appellants are correct in this premise, it would seem that they would have such a title to the airspace claimed, as an incident to their ownership of the land, that they could protect such a title as if it were an ordinary interest in real prop­erty. Let us then examine the appellants’ premise. They do not seek to maintain that the ownership of the land actually ex­tends by absolute and exclusive title up­ward to the sky and downward to the cen­ter of the earth. They recognize that the space claimed must have some use, either present or contemplated, and connected with the enjoyment of the land itself.

    Title to the airspace unconnected with the use of land is inconceivable. Such a right has never been asserted. It is a thing not known to the law.

    Since, therefore, appellants must con­fine their claim to 150 feet of the airspace above the land, to the use of the space as related to the enjoyment of their land, to what extent, then, is this use necessary to perfect their title to the airspace? Must the use be actual, as when the owner claims the space above the earth occupied by a building constructed thereon; or does it suffice if appellants establish merely that they may reasonably expect to use the air­space now or at some indefinite future time?

    This, then, is appellants’ premise, and upon this proposition they rest their case. Such an inquiry was never pursued in the history of jurisprudence until the occasion is furnished by the common use of vehicles of the air.

    We believe, and hold, that appellants’ premise is unsound. The question presented is applied to a new status and little aid can be found in actual precedent. The solution is found in the application of elementary legal principles. The first and foremost of these principles is that the very essence and origin of the legal right of property is dominion over it. Property must have been reclaimed from the general mass of the earth, and it must be capable by its nature of exclusive possession. Without posses­sion, no right in it can be maintained.

    The air, like the sea, is by its nature incapable of private ownership, except in so far as one may actually use it. This principle was announced long ago by Jus­tinian. It is in fact the basis upon which practically all of our so-called water codes are based.

    We own so much of the space above the ground as we can occupy or make use of, in connection with the enjoyment of our land. This right is not fixed. It varies with our varying needs and is coextensive with them. The owner of land owns as much of the space above him as he uses, but only so long as he uses it. All that lies beyond belongs to the world.

    When it is said that man owns, or may own, to the heavens, that merely means that no one can acquire a right to the space above him that will limit him in whatever use he can make of it as a part of his enjoyment of the land. To this ex­tent his title to the air is paramount. No other person can acquire any title or ex­clusive right to any space above him.

    Any use of such air or space by others which is injurious to his land, or which constitutes an actual interference with his possession or his beneficial use thereof, would be a trespass for which he would have remedy. But any claim of the land­owner beyond this cannot find a precedent in law, nor support in reason.

    It would be, and is, utterly impractica­ble and would lead to endless confusion, if the law should uphold attempts of land­owners to stake out, or assert claims to definite, unused spaces in the air in order to protect some contemplated future use of it. Such a rule, if adopted, would con­stitute a departure never before attempted by mankind, and utterly at variance with the reason of the law. If such a rule were conceivable, how will courts protect the various landowners in their varying claims of portions of the sky? How enforce a right of ejectment or restitution? Such a rule is not necessary for the protection of the landowner in any right guaranteed him by the Constitution in the enjoyment of his property. If a right like this were recog­nized and upheld by the courts, it would cause confusion worse confounded. It is opposed to common sense and to all hu­man experience.

    We cannot shut our eyes to the practi­cal result of legal recognition of the assert­ed claims of appellants herein, for it leads to a legal implication to the effect that any use of airspace above the surface owner of land, without his consent would be a tres­pass either by the operator of an airplane or a radio operator. We will not foist any such chimerical concept of property rights upon the jurisprudence of this country.

    We now consider the allegation of the bill that appellees’ airplanes, in land­ing, glide through the air, within a dis­tance of less than 100 feet to the surface of appellants’ land, or possibly to a distance within five feet thereof, at one end of his tract. This presents another question for discussion. Whether such close prox­imity to appellants’ land may constitute an impairment of his full enjoyment of the same is a question of fact. If it does, he may be entitled to relief in a proper case.

    Appellants are not entitled to injunctive relief upon the bill filed here, because no facts are alleged with respect to circum­stances of appellants’ use of the premises which will enable this court to infer that any actual or substantial damage will ac­crue from the acts of the appellees com­plained of.

    The case differs from the usual case of enjoining a trespass. Ordinarily, if a tres­pass is committed upon land, the plaintiff is entitled to at least nominal damages without proving or alleging any actual damage. In the instant case, traversing the airspace above appellants’ land is not, of it­self, a trespass at all, but it is a lawful act unless it is done under circumstances which will cause injury to appellants’ possession.

    Appellants do not, therefore, in their bill state a case of trespass, unless they al­lege a case of actual and substantial dam­age. The bill fails to do this. It merely draws a naked conclusion as to damages without facts or circumstances to support it. It follows that the complaint does not state a case for injunctive relief.

    We should note appellants’ conten­tion that appellees’ continuous use of the airspace in question may or will ripen into an easement.

    In considering this particular question, it is necessary to consider just what right appellees are attempting to acquire. If the superincumbent airspace were merely space (speaking of space as a nonentity), it would be valueless to the appellees. In other words, if no air were present there­in, appellees’ planes could not navigate. The primary thing appellees are using would appear to be the air overlying appel­lants’ land. It is generally held that an easement of or in the air may not be ob­tained by prescription.

    It is said in 19 C.J. 903, § 85: “The English doctrine that an easement for light and air may be acquired by user or pre­scription has been very generally rejected in the United States.” See, also, 1 Thomp­son on Real Property, p. 652, § 542; also, Case v. Minot, 158 Mass. 577, 33 N.E. 700, 22 L.R.A. 536, where many cases are cited in support of this rule. We therefore hold that it is not legally possible for appellees to obtain an easement by prescription through the airspace above appellants’ land. Portsmouth Harbor Land & Hotel Co. v. United States, 260 U.S. 327, 43 S.Ct. 135, 67 L.Ed. 287, is not at variance with this holding, for in that case it is apparent that the use or occupancy of the airspace, if it can be so considered, was under such cir­cumstances as amounted to a taking of the surface also. Such is not the case here.

    It is necessary to note also appel­lants’ further point, namely, that the sec­ond cause of action in the bill is for dam­ages on account of trespass. No actual injury is alleged, other than the mere uti­lization of the airspace above appellants’ land.

    In Murray v. Pannaci (C.C.A.3) 130 F. 529, at page 530, it was said: “The judge applied to the case the familiar rule, set­tled by many decisions, that although a le­gal injury to a plaintiff is proven, yet if the extent of the injury is not shown, nor evidence given from which it can be in­ferred, nominal damages only can be re­covered.” This rule is supported by many decisions set out in 63 C.J. 1035, § 225. We hold under the allegations of the bill that in no event could appellant be entitled to more than nominal damages, and that be­ing the case, an injunction was properly denied.

    Appellants also complain in their third assignment of error as follows:

    “That the above entitled court erred in making and causing to be entered that por­tion of said order as follows, to-wit:

    “That ‘in no case shall any amended cause of action be sufficient compliance with this order if same merely restates a case in trespass.’”

    In Truckee River General Electric Co. v. Benner, 211 F. 79, 81, this court said: “It has uniformly been held in those [fed­eral] courts that the allowance or refusal of leave to amend pleadings in actions at law is discretionary with the trial court, and that its action is not reviewable except in case of gross abuse of discretion.”

    Equity Rule 28 (28 U.S.C.A. following section 723) provides that: “After plead­ing filed by any defendant, plaintiff may amend only by consent of the defendant or leave of the court or judge.”

    In the instant case, leave was granted to appellants twice to amend their bill in one case, and once in the other. They failed in each of the bills to allege an injury by trespass which would be legally sufficient. Under such circumstances we are not pre­pared to say that the trial court abused its discretion.

    The decree of the District Court is af­firmed.

    MATHEWS, Circuit Judge, dissents.

    25.4 Hinman v. Pacific Air Transport: Notes + Questions 25.4 Hinman v. Pacific Air Transport: Notes + Questions

    Notes and Questions 

    1. Did the court in Hinman “find” the law of property as it applies to the airspace above land? Did it “change” the law in this regard? Or did it—as Felix Cohen argued—“create and distribute a new source of economic wealth or power”? 

     

    2. Does the court say that Hinman will never be able to obtain the relief sought? Are there any circumstances in which an injunction to restrict overflights to an altitude of over 150 feet (or any altitude) could be awarded under the court’s analysis? 

     

    3. The court justified its ruling in Hinman, at least in part, by reference to the “practical result” that would follow a finding in the landowner’s favor. What would that “practical result” be, and why did the court feel the need to avoid it? Is avoiding such undesirable “practical results” an acceptable basis for making a determination as to whether something is a person’s “property” 

     

    4. Drones. The increasing availability of personal aerial robots (“drones”) is threatening to bring Hinman back into the spotlight. In November of 2014, a hobbyist was flying a custom-built “hexacopter” over his parents’ farm in California, when a neighbor’s son shot it out of the sky with a shotgun. The neighbor claimed the drone had been flying over his land, though the drone owner disputed this. In any event, the drone owner demanded compensation for damage to the drone, and the neighbor refused. They ended up in small claims court where the neighbor was held liable for $850 in damages and court costs, on grounds that he “acted unreasonably in having his son shoot the drone down regardless of whether it was over his property or not.” Jason Koebler, The Sky’s Not Your Lawn: Man Wins Lawsuit After Neighbor Shotgunned His Drone, MOTHERBOARD (June 28, 2015), http://motherboard.vice.com/read/the-skys-not-your-lawn-man-wins-lawsuit-after-neighbor-shotgunned-his-drone. 

    Imagine that instead of (or in addition to) having his son use the drone for target practice, the farmer had called the police to make a complaint of criminal trespass, or sued the drone owner for trespass. What result? Would it matter how high the drone was flying? Would it matter whether the drone was equipped with a camera? (Recall that the right to exclude is not the only right of owners; trespass may not be our farmer’s only recourse. We will consider some analogous factual scenarios in our unit on Nuisance.) 

    5. Would the “practical result” of a finding for the landowner in Hinman necessarily be the same as the “practical result” of a finding in favor of a landowner suing the operator of a drone in the airspace over her land? Again, would it matter how high the drone was flying, or whether it was equipped with a camera?