3 Allocation 3 Allocation

Contact: Jeremy Sheff

 We may well conclude that certain types of resources should be subject to private ownership, and we may further conclude that such ownership ought to entail particular rights of owners. But this would not be sufficient to establish a system of property rights. We would still need to decide which things are owned by whom. Certainly, if one of the rights of owners is the right to alienate, then once something is legitimately owned by someone, that person can transfer rightful ownership to someone else. (We will study how such transfers can come about later in this book—indeed we will find that some transfers can confer the rights of ownership on a transferee even where the transferor’s rights are not so clear-cut. We will also see that there are ways for things owned by one person to become owned by another person other than by voluntary transfer.) 

But even assuming a current owner could trace their rights of ownership back through a series of successive voluntary transfers from rightful owners—a chain of title, as we will come to call it—the first link in that chain must be something other than a transfer from a prior rightful owner. What could this something be? How do things go from being unowned to being owned? Why might we recognize some rules for such initial allocations of resources over the available alternatives? 

In this chapter, we will examine the most common justification for protecting someone’s rights of ownership: possession. The common law holds that initial ownership of a heretofore unowned thing goes to the first to possess that thing—that first in time is first in right. But as we will see, this rule is not as straightforward as it may seem. To begin with, reasonable people may differ as to what constitutes “possession,” or what it means to be “first.” Our first few cases illustrating this problem deal with first possession of chattels (sometimes called “personal property” or “personality”—basically any ownable thing that isn’t land or attached to land). 

3.1 A. Initial Allocation of Chattels 3.1 A. Initial Allocation of Chattels

3.1.1 Pierson v. Post 3.1.1 Pierson v. Post

ALBANY,

Jesse Pierson against Lodowick Post.

August, 1805.

Sanford for the now plaintiff.

Colden contra.

Sanford in reply.

Per curiam, delivered by

Tompkins, J.

This cause comes before us on a return to a certiorari directed to one of the justices of Queen’s county.

The question submitted by the counsel in this cause for our determination is, whether Lodowick Post, by the pur­suit with his hounds in the manner alleged in his declara­tion, acquired such a right to, or property in the fox, as will sustain an action against Pierson for killing and taking him away?

The cause was argued with much ability by the counsel on both sides, and presents for our decision a novel and nice question. It is admitted, that a fox is an animal ferae naturae, and that property in such animals is acquired by oc­cupancy only. These admissions narrow the discussion to the simple question of what acts amount to occupancy, ap­plied to acquiring right to wild animals.

If we have recourse to the ancient writers upon gene­ral principles of law, the judgment below is obviously erroneous. Justinian's Institutes, lib. 2. tit. 1. sect. 13, and Fle­ta, lib. iii. c. ii. page 175, adopt the principle, that pursuit alone, vests no property or right in the huntsman; and that even pursuit, accompanied with wounding, is equally inef­fectual for that purpose, unless the animal be actually taken. The same principle is recognised by Bracton, lib. ii. c. i. page 8.

Puffendorf lib. iv. c. 6. sec. 2. & 10. defines occupancy of beasts ferae naturae, to be the actual corporal possession of them, and Bynkershoek is cited as coinciding in this de­finition. It is indeed with hesitation that Puffendorf affirms, that a wild beast mortally wounded, or greatly maimed, cannot be fairly intercepted by another, whilst the pursuit of the person inflicting the wound continues. The forego­ing authorities are decisive to shew, that mere pursuit, gave Post no legal right to the fox, but that he became the property of Pierson, who intercepted and killed him.

It therefore only remains to inquire, whether there are any contrary principles, or authorities, to be found in other books, which ought to induce a different decision. Most of the cases which have occurred in England relating to property in wild animals, have either been discussed and decid­ed upon the principles of their positive statute regulations, or have arisen between the huntsman, and the owner of the land upon which beasts ferae naturae have been apprehended; the former claiming them by title of occupancy, and the lat­ter ratione soli. Little satisfactory aid can, therefore, be de­rived from the English reporters.

Barbeyrac in his notes on Puffendorf, does not accede to the definition of occupancy by the latter, but, on the contra­ry, affirms, that actual bodily seizure is not, in all cases, necessary to constitute possession of wild animals. He does not however, describe the acts which, according to his ideas, will amount to an appropriation of such animals to private use, so as to exclude the claims of all other persons, by title of occupancy, to the same animals; and he is far from aver­ring that pursuit alone is sufficient for that purpose. To a certain extent, and as far as Barbeyrac appears to me to go, his objections to Puffendorf’s definition of occupancy are reasonable and correct. That is to say, that actual bodily seizure is not indispensable to acquire right to, or possession of wild beasts; but that, on the contrary, the mortal wound­ing of such beasts, by one not abandoning his pursuit, may, with the utmost propriety, be deemed possession of him; since thereby, the pursuer manifests an unequivical inten­tion of appropriating the animal to his individual use, has deprived him of his natural liberty, and brought him within his certain control. So, also, encompassing and securing such animals with nets and toils, or otherwise intercepting them, so as to deprive them of their natural liberty, and ren­der escape impossible, may justly be deemed to give pos­session of them to those persons who, by their industry and labor, have used such means of apprehending them. Barbeyrac seems to have adopted, and had in view in his notes, the more accurate opinion of Grotius, with respect to occu­pancy. That celebrated author, lib. ii. c. 8. sect. 3. page 309, speaking of occupancy, proceeds thus, “Requiritur autem corporalis quaedam possessio ad dominium adipiscendum; atque ideo, vulnerasse non sufficit." But in the following section he explains and qualifies this definition of occupan­cy: “Sed possessio illa potest non solis manibus, sed instrumentis, ut decipulis, retibus, laqueis dum quo adsint: primum ut ipsa instrumenta sint in nostra potestate, deinde ut fera, ita inclusa sit, ut exire inde nequeat." This quali­fication embraces the full extent of Barbeyrac's objection to Puffendorf's definition, and allows as great a latitude to acquiring property by occupancy, as can reasonably be inferred from the words or ideas expressed by Barbeyrac in his notes. The case now under consideration is one of mere pursuit, and presents no circumstances or acts which can bring it within the definition of occupancy by Puffendorf, or Grotius, or the ideas of Barbeyrac upon that subject.

The case cited from 11 Mod. 74—130, I think clearly distinguishable from the present; inasmuch, as there the ac­tion was for maliciously hindering and disturbing the plaintiff in the exercise and enjoyment of a private franchise; and in the report of the same case 3 Salk. 9. Holt, Chief Justice, states, that the ducks were in the plaintiff’s decoy pond and so in his possession, from which it is obvious the court laid much stress in their opinion, upon the plaintiff’s pos­session of the ducks, ratione soli.

I am the more readily inclined to confine possession or occupancy of beasts ferae naturae, within the limits prescrib­ed by the learned authors above cited, for the sake of cer­tainty, and preserving peace and order in society. If the first seeing, starting or pursuing such animals, without hav­ing so wounded, circumvented or ensnared them, so as to deprive them of their natural liberty, and subject them to the control of their pursuer, should afford the basis of actions against others for intercepting and killing them, it would prove a fertile source of quarrels and litigation.

However uncourteous or unkind the conduct of Pierson towards Post, in this instance, may have been, yet his act was productive of no injury or damage, for which a legal remedy can be applied. I am of opinion the judgment below was erroneous, and ought to be reversed. 

Livingston J.

My opinion differs from that of the court. Of six exceptions, taken to the proceedings below, all are abandoned except the third, which reduces the con­troversy to a single question.

Whether a person, who with his own hounds, starts and hunts a fox, on waste and uninhabited ground, and is on the point of seizing his prey, acquires such an interest in the animal, as to have a right of action against another, who in view of the huntsman and his dogs in full pursuit, and with knowledge of the chase, shall kill and carry him away?

This is a knotty point, and should have been submitted to the arbitration of sportsmen, without poring over Justinian, Fleta, Bracton, Puffendorf, Locke, Barbeyrac or Blackstone, all of whom have been cited; they would have had no difficulty in coming to a prompt and correct conclusion. In a court, thus constituted, the skin and carcase of poor Re­nard would have been properly disposed of, and a precedent set, interfering with no usage or custom which the experi­ence of ages has sanctioned, and which must be so well known to every votary of Diana. But the parties have re­ferred the question to our judgment, and we must dispose of it as well as we can, from the partial lights we possess, leaving to a higher tribunal, the correction of any mistake which we may be so unfortunate as to make. By the plead­ings it is admitted, that a fox is a “wild and noxious beast." Both parties have regarded him, as the law of nations does a pirate “hostem humani generis,” and although “de mortuis nil nisi bonum," be a maxim of our profession, the memory of the deceased has not been spared. His depre­dations on farmers and on barn-yards, have not been for­gotten; and to put him to death, wherever found, is allow­ed to be meritorious, and of public benefit. Hence it fol­lows, that our decision should have in view the greatest possible encouragement to the destruction of an animal, so cunning and ruthless in his career. But who would keep a pack of hounds; or what gentleman, at the sound of the horn, and at peep of day would mount his steed, and for hours together, “sub jove frigido” or a vertical sun, pursue the windings of this wily quadruped, if, just as night came on, and his stratagems and strength were nearly exhausted, a saucy intruder, who had not shared in the honors or labours of the chase, were permitted to come in at the death, and bear away In triumph the object of pursuit? What­ever Justinian may have thought of the matter, it must be recollected that his code was compiled many hundred years ago, and it would be very hard indeed, at the distance of so many centuries, not to have a right to establish a rule for ourselves. In his day, we read of no order of men, who made it a business, in the language of the declaration in this cause, "with hounds and dogs to find, start, pursue, hunt, and chase,” these animals, and that too, without any other motive, than the preservation of Roman poultry; if this diversion had been then in fashion, the lawyers who composed his institutes, would have taken care not to pass it by, without suitable encouragement. If any thing there­fore, in the digests or pandects shall appear to militate against the defendant in error, who, on this occasion, was the foxhunter, we have only to say tempora mutantur; and if men them­selves change with the times, why should not laws also undergo an alteration?

It may be expected, however, by the learned counsel, that more particular notice be taken of their authorities. I have examined them all, and feel great difficulty in determining, whether to acquire dominion over a thing, be­fore in common, it be sufficient that we barely see it, or know where it is, or wish for it, or make a declaration of our will respecting it; or whether, in the case of wild beasts, setting a trap, or lying in wait, or starting, or pursuing, be enough; or if an actual wounding, or killing, or bodily tact and occupation be necessary. Writers on general law, who have favored us with their speculations on these points,­ differ on them all; but, great as is the diversity of senti­ment among them, some conclusion must be adopted on the question immediately before us. After mature delibe­ration, I embrace that of Barbeyrac, as the most rational, and least liable to objection. If at liberty, we might imitate the courtesy of a certain Emperor, who, to avoid giving offence to the advocates of any of these different doc­trines, adopted a middle course, and by ingenious distinc­tions, rendered it difficult to say, (as often happens after a fierce and angry contest,) to whom the palm of victory belonged. He ordained, that if a beast be followed with large dogs and hounds, he shall belong to the hunter, not to the chance occupant; and in like manner, if he be killed or wounded with a lance or sword; but if chased with beagles only, then he passed to the captor, not to the first pursuer. If slain with a dart, a sling or a bow, he fell to the hunter, if still in chase, and not to him who might afterwards find and seize him.

Now, as we are without any municipal regulations of our own, and the pursuit here, for aught that appears on the case, being with dogs and hounds of imperial stature, we are at liberty to adopt one of the provisions just cited, which comports also with the learned conclusion of Bar­beyrac, that property in animals ferae naturae, may be ac­quired without bodily touch or manucaption, provided the pursuer be within reach, or have a reasonable prospect (which certainly existed here) of taking, what he has thus discovered an intention of converting to his own use.

When we reflect also that the interest of our husband­men, the most useful of men in any community, will be advanced by the destruction of a beast so pernicious and incorrigible, we cannot greatly err, in saying, that a pursuit like the present, through waste and unoccupied lands, and which must inevitably and speedily have terminated in cor­poral possession, or bodily seisin, confers such a right to the object of it, as to make any one a wrong doer, who shall interfere and shoulder the spoil. The justice’s judge­ment ought therefore, in my opinion, to be affirmed.

3.1.2 Pierson v. Post: Notes + Questions 3.1.2 Pierson v. Post: Notes + Questions

Notes and Questions 

1. Justifying Allocations. Does awarding ownership of a previously unowned chattel to the first possessor of that chattel strike you as a good rule? Consider some arguments that might be raised for or against it: 

• Administrability: Is the rule easy to apply? Does it give clear and ready answers? Does it make judges’ and litigants’ jobs easier or harder? Does it minimize the cost and time involved in resolving disputes? Can it be applied without resort to ambiguous or hard-to-obtain evidence? 

• Fairness: Does the rule comport with well-considered notions of fairness? Does it treat similarly situated people similarly? Does it favor some claimants over others based on criteria that seem irrelevant, arbitrary, or beyond the claimants’ control? 

• Morality: Does the rule reward moral behavior and punish—or at least refrain from rewarding—immoral behavior? (This assumes of course that we have a standard for moral and immoral behavior.) 

• Reliance: Does the rule respect the reasonable expectations of those with an interest in contested resources? Does it result in a forfeiture of their investment of time, money, or effort premised on such expectations? Does it comport with tradition? 

• Pragmatism: Does the rule roughly comport with the moral intuitions of those who are subject to it? Do we expect the rule to be obeyed? 

• Ecology: Is the rule consistent with responsible stewardship of resources? Does it ensure that an exhaustible resource will remain available for the benefit of future generations? 

• Incentives: Does the rule encourage or discourage the conversion of idle resources to productive use? Does it encourage excessive, duplicative, or wasteful efforts to exploit resources? Does it encourage or discourage disputes or violence among rival claimants? Does it encourage would-be claimants to expend resources on protecting themselves against other would-be claimants, instead of on more productive pursuits? When weighing these incentives in the aggregate, is the rule efficient? That is, does it extract the greatest possible value from available resources at the lowest possible cost? 

Which of these arguments strikes you as more or less important to the justification of a legal rule—particularly a rule of property law? Which of them were invoked by Justices Tompkins and Livingston in Pierson

Even if we agree as to which of these arguments matter in disposing of a particular dispute, are we sure to agree whether a particular type of argument favors a particular party? For example, is Justice Livingston correct in claiming that the decision in Pierson’s favor will provide insufficient incentive for hunters to capture foxes? Is Justice Tompkins correct in claiming that a decision in Post’s favor would lead to increased disputes over the trophies of the chase? Does either opinion clearly establish which outcome would be the most fair? How could we know the answer to these questions? 

 

2. Alternatives to First Possession. Is the rule of first possession the best available rule for allocating unowned resources? Consider some possible alternative allocation principles: 

• Perhaps initial allocation should go to the first claimant—the first to explicitly assert a right of ownership (or manifest the intent to assert such a right, as by pursuit). 

• Perhaps initial allocation should go to the last possessor—the person who gains and maintains possession against the efforts of all competitors. 

• Perhaps possession is irrelevant: perhaps initial allocation should go to all interested claimants in equal shares. 

• Perhaps the resource should be owned as a commons: it belongs to everybody jointly; everybody has an equal right to it and nobody has a superior right to anyone else. 

• Perhaps the government ought to own everything and simply provide rights of possession and use by means of bureaucratic and political mechanisms. (Then again, perhaps this is exactly what the common law of real property does. See Section B, infra.) 

• Perhaps ownership should be determined by lot, at random. 

How would each of these rules compare to the rule of first possession in terms of each of the justifications we have just reviewed for and against that rule? What do you think would be the practical result of choosing one of these alternative allocation regimes—i.e., how would people likely shape their behavior in response to these allocation rules? 

 

3. Recall the first type of justification we discussed in Note 1 above: administrability. Do you think it will always be obvious that one claimant of a chattel has achieved possession and another has not? Consider the following case. 

3.1.3 Ghen v. Rich 3.1.3 Ghen v. Rich

(District Court, D. Massachusetts.

Ghen v. Rich.

April 23, 1881.)

H. M. Knowlton, for libellant.

IT. P. llarriman, for respondent.

Nelson, D. J.

This is a libel to recover the value of a fin-back whale. The libellant lives in Provincetown and the respondent in Wellfleet. The facts, as they appeared at the hearing, are as follows:

In the early spring months the easterly part of Massachusetts bay is fre­quented by the species of whale known as the fin-back whale. Fishermen from Provincetown pursue them in open boats from the shore, and shoot them with bomb-lances fired from guns made expressly for the purpose. When killed they sink at once to the bottom, but in the course of from one to three days they rise and float on the surface. Some of them are picked up by vessels and towed into Provincetown. Some float ashore at high water and are left stranded on the beach as the tide recedes. Others float out to sea and are never recovered. The person who happens to find them on the beach usually sends word to Provincetown, and the owner comes to the spot and removes the blubber. The finder usually receives a small salvage for his services. Try-works are established in Provincetown for trying out the oil. The business is of considerable extent, but, since it requires skill and experi­ence, as well as some outlay of capital, and is attended with great exposure and hardship, few persons engage in it. The average yield of oil is about 20 barrels to a whale. It swims with great swiftness, and for that reason can­not be taken by the harpoon and line. Each boat’s crew engaged in the busi­ness has its peculiar mark or device on its lances, and in this way it is known by whom a whale is killed.
The usage on Cape Cod, for many years, has been that the person who kills a whale in the manner and under the circumstances described, owns it, and this right has never been disputed until this case. The libellant has been engaged in this business for ten years past. On the morning of April 9, 1880, in Massachusetts bay, near the end of Cape Cod, he shot and instantly killed with a bomb-lance the whale in question. It sunk immediately, and on the morning of the 12th was found stranded on the beach in Brewster, within the ebb and flow of the tide, by one Ellis, 17 miles from the spot where it was killed. Instead of sending word to Princeton, as is customary, Ellis adver­tised the whale for sale at auction, and sold it to the respondent, who shipped off the blubber and tried out the oil. The libellant heard of the finding of the whale on the morning of the 15th, and immediately sent one of his boat’s crew to the place and claimed it. Neither the respondent nor Ellis knew the whale had been killed by the libellant, but they knew or might have known, if they had wished, that it had been shot and killed with a bomb-­lance, by some person engaged in this species of business.

The libellant claims title to the whale under this usage. The re­spondent insists that this usage is invalid. It was decided by Judge Sprague, in Taber v. Jenny, 1 Sprague, 315, that when a whale has been killed, and is anchored and left with marks of appropriation, it is the property of the captors; and if it is afterwards found, still anchored, by another ship, there is no usage or principle of law by which the property of the original captors is diverted, even though the whale may have dragged from its anchorage. The learned judge says:

“When the whale had been killed and taken possession of by the boat of the Hillman, (the first taker,) it became the property of the owners of that ship, and all was done which was then practicable in order to secure it. They left it anchored, with unequivocal marks of appropriation.”

In Bartlett v. Budd, 1 Low. 223, the facts were these: The first officer of the libellant’s ship killed a whale in the Okhotsk sea, anchored it, attached a waif to the body, and then left it and went ashore at some distance for the night. The next morning the boats of the respondent’s ship found the whale adrift, the anchor not holding, the cable coiled round the body, and no waif or irons attached to it. Judge Lowell held that, as the libellants had killed and taken actual possession of the whale, the ownership vested in them. In his opin­ion the learned judge says:

“A whale, being ferae naturae, does not become property until a firm posses­sion has been established by the taker. But when such possession has become firm and complete, the right of property is clear, and has all the characteris­tics of property.”

He doubted whether a usage set up but not proved by the respond­ents, that a whale found adrift in the ocean is the property of the finder, unless the first taker should appear and claim it before it is cut in, would be valid, and remarked that “there would be great diffi­culty in upholding a custom that should take the property of A. and give it to B., under so very short and uncertain a substitute for the statute of limitations, and one so open to fraud and deceit.” Both the cases cited were decided without reference to usage, upon the ground that the property had been acquired by the first taker by actual possession and appropriation.

In Swift v. Gifford, 2 Low. 110, Judge Lowell decided that a cus­tom among whalemen in the Arctic seas, that the iron holds the whale, was reasonable and valid. In that case a boat’s crew from the respondent’s ship pursued and struck a whale in the Arctic ocean, and the harpoon and the line attached to it remained in the whale, but did not remain fast to the boat. A boat’s crew from the libellant’s ship continued the pursuit and captured the whale, and the master of the respondent’s ship claimed it on the spot. It was held by the learned judge that the whale belonged to the respondents. It was said by Judge Sprague, in Bourne v. Ashley, an unprinted case referred to by Judge Lowell in Swift v. Gifford, that the usage for the first iron, whether attached to the boat or not, to hold the whale was fully established; and he added that, although local usages of a par­ticular port ought not to be allowed to set aside the general maritime law, this objection did not apply to a custom which embraced an entire business, and had been concurred in for a long time by every one engaged in the trade.

In Swift v. Gifford, Judge Lowell also said:

“The rule of law invoked in this case is one of very limited application. The whale fishery is the only branch of industry of any importance in which it is likely to be much used, and if a usage is found to prevail generally in that business, it will not be open to the objection that it is likely to disturb the general understanding of mankind by the interposition of an arbitrary exception.”

I see no reason why the usage proved in this case is not as rea­sonable as that sustained in the cases cited. Its application must necessarily be extremely limited, and can affect but a few persons. It has been recognized and acquiesced in for many years. It requires in the first taker the only act of appropriation that is possible in the nature of the case. Unless it is sustained, this branch of industry must necessarily cease, for no person would engage in it if the fruits of his labor could be appropriated by any chance finder. It gives reasonable salvage for securing or reporting the property. That the rule works well in practice is shown by the extent of the industry which has grown up under it, and the general acquiescence of a whole community interested to dispute it. It is by no means clear that without regard to usage the common law would not reach the same result. That seems to be the effect of the decisions in Taber v. Jenny and Bartlett v. Budd. If the fisherman does all that it is possible to do to make the animal his own, that would seem to be sufficient. Such a rule might well be applied in the interest of trade, there being no usage or custom to the contrary. Holmes, Com. Law, 217. But be that as it may, I hold the usage to be valid, and that the property in the whale was in the libellant.

The rule of damages is the market value of the oil obtained from the whale, less the cost of trying it out and preparing it for the mar­ket, with interest on the amount so ascertained from the date of con­version. As the question is new and important, and the suit is con­tested on both sides, more for the purpose of having it settled than for the amount involved, I shall give no costs.

Decree for libellant for $71.05, without costs.

3.1.4 Ghen v. Rich: Notes + Questions 3.1.4 Ghen v. Rich: Notes + Questions

Notes and Questions 

1. Primary and Secondary Rules. Is the rule of Ghen v. Rich different from the rule of Pierson v. Post? If so, how? Are the justifications for the rule, or for the outcome, the same in each case? If not, how do they differ? 

To answer this question, it may be helpful to distinguish between what leading legal philosopher H.L.A. Hart called primary rules and secondary rules. In Hart’s account, primary rules are those that prescribe standards of conduct, and set forth consequences for failure to act accordingly. Statutes defining and setting forth punishments for crimes provide a straightforward example. Secondary rules are basically everything else, but in particular they include rules that give actors within the legal system the power to create, alter, or abolish their own primary rules. For example, contract law is largely a body of secondary rules: parties to a contract acting within those rules have the power to create legal rights and obligations that will bind them; the contract itself embodies the applicable primary rules. (For more on this distinction—and more of Hart’s monumental contributions to jurisprudence—see H.L.A. HART, THE CONCEPT OF LAW.) 

Based on this admittedly limited introduction to the concept, was the determinative legal rule in Ghen v. Rich a primary or a secondary rule? What about in Pierson v. Post

 

2. Whose Custom? In Aberdeen Arctic Co. v. Sutter, 4 McQ. H.L. 355 (1862), the House of Lords heard the appeal of a case involving a hired Eskimo harpooner aboard an English whaling vessel in Cumberland Inlet, a traditional native fishing ground in what is now Canada. The harpooner, one Bullygar, struck a whale with a harpoon and line, at the end of which was attached an inflated sealskin, or “drog,” which the native fishermen had a custom of using to tire the harpooned animal and to make it easier to track while it swims below the surface. The whale dove immediately, so deep that Bullygar was forced to release his line, and it did not surface again until it had traveled several miles. Before Bullygar and his ship could retrieve it, another ship—the Alibi—came upon the wounded whale, killed it, and took it. Bullygar’s captain (Sutter) sued the owners of the Alibi for “compensation and damages” in the amount of £1,200. 

The Law Lords found for the owners of the Alibi, recognizing a custom of English whalers in the shallower waters around Greenland. This custom was known as “fast and loose” (which does not—or did not—mean what you think it means). According to the “fast and loose” rule, the first ship to harpoon a whale has a right to the animal so long as the ship holds “fast” to its line, even if other ships participate in the ultimate killing and capture of the whale. But if the whale should break free—even if mortally wounded—or if the line should be intentionally cut or released—even for reasons of safety or necessity—the whale becomes “loose” and will become the property of the first ship to actually secure it. (See HERMAN MELVILLE, MOBY-DICK 372-75 (1922) [1892] (“Fast-Fish and Loose-Fish”).) 

Sutter argued that Cumberland Inlet had long been governed by the custom of the Eskimo—which conferred ownership on the first person whose harpoon struck and remained in the animal with the drog attached—and that the English “fast and loose” rule should not apply. Lord Chancellor Westbury rejected the argument. He opined that Sutter had the burden of proving that English whaling ships entering this new fishing ground had agreed not to bring the “fast and loose” custom with them. Indeed, he openly doubted whether the drog fishing methods of the Eskimo—which they used primarily in seal hunting—were even capable of capturing a whale. Moreover, he suggested that even if the case were to be decided by the law of “occupancy” rather than the custom of English whalers, the result would be the same. 

Is the rule of Ghen v. Rich the same as the rule of Aberdeen Arctic Co. v. Sutter? If different, which rule is better and why? 

 

3. Imagine you are counsel to either Pierson or Rich, and your adversary makes you an offer of settlement: to sell the contested chattel and split the proceeds evenly. What would you advise your client to do? Consider the following case. 

3.2 B. Allocation of Land 3.2 B. Allocation of Land

3.2.1 Blackstone, Commentaries on the Laws of England (vol. 2, p. 59) 3.2.1 Blackstone, Commentaries on the Laws of England (vol. 2, p. 59)

William Blackstone, Commentaries on the Laws of England 
Vol. 2, p. 59 (1765). 

[A]ll the land in the kingdom is supposed to be holden, mediately or immediately, of the king; who is stiled the lord paramount, or above all. 

Source: Bayeux Tapestry. Left: Harold the King Is Slain. Right: William the Conqueror seated, center.

*** 

Unlike foxes, whales, and baseballs, real property—that is, land and structures and other improvements attached to land—isn’t subject to the physical control of an individual in the same way chattels are. So what might be the legal basis for allocating private rights in real property? 

Claims to ownership of land in England trace back as much as a thousand years. In 1066, William, Duke of Normandy, invaded England and defeated the Anglo-Saxon King Harold at the battle of Hastings—as immortalized in the Bayeux Tapestry. William—now William the Conqueror—promptly set about parceling out rights to possess land in his new kingdom. William allocated these rights according to his political and military needs: affirming the rights of Anglo-Saxon landholders who supported him, while expropriating the land of his opponents and reallocating it to his loyal Norman nobles. These nobles received their rights of tenure (from the Latin word tenere and Norman French word tenir, “to hold”) under obligations of fealty (from the Norman French fedelité or fealté, meaning fidelity or loyalty); the land each nobleman held was referred to as his fé, (variations: fief, fee, feud). Hence the name historians have applied to the resulting social system: feudalism. Feudal obligations typically included payment of taxes in cash or kind and rendering of services (primarily military services) to the tenant’s (holder’s) lord and king. This system of feudal grants of possessory and usufructary rights from the crown evolved over the centuries into the modern system of land ownership—a historical process we will revisit later in our chapter on Estates in Land. 

Can there be any justification for the allocation of rights in land beyond the whims of a long-dead warlord and his cronies? In early modern England this was not merely an academic question. Huge changes in the legal regime governing rights to land were underway: lands in England long held as “commons” were being progressively “enclosed” (i.e., appropriated) by noble families for their private use, the personal loyalty relationships underlying feudal land tenure were being supplanted by a more self-consciously economic approach to land rights, and the colonization of the Americas brought European settlers into contact—and often conflict—with native Americans. In this period of rapid change, Britain’s leading thinkers turned to the problem of justifying private property rights in land. 

3.2.2 Thomas Hobbes, Leviathan (​​​​​​​pp. 188-190) 3.2.2 Thomas Hobbes, Leviathan (​​​​​​​pp. 188-190)

Thomas Hobbes, Leviathan 
pp. 188-190 (Oxford 1909) [1651]

The NUTRITION of a Common-wealth consisteth, in the Plenty, and Distribution of Materials conducing to Life: In Concoction, or Preparation; and (when concocted) in the Conveyance of it, by convenient conduits, to the Publique use. 

…The Distribution of the Materials of this Nourishment, is the constitution of Mine, and Thine, and His, that is to say, in one word Propriety; and belongeth in all kinds of Common-wealth to the Soveraign Power. For where there is no Common-wealth, there is, (as hath been already shewn) a perpetuall warre of every man against his neighbour; And therefore every thing is his that getteth it, and keepeth it by force; which is neither Propriety nor Community; but Uncertainty. … Seeing therefore the Introduction of Propriety is an effect of Common-wealth; which can do nothing but by the Person that Represents it, it is the act onely of the Soveraign; and consisteth in the Lawes, which none can make that have not the Soveraign Power. And this they well knew of old, who called that Νóμoς, (that is to say, Distribution,) which we call Law; and defined Justice, by distributing to every man his own

… In this Distribution, the First Law, is for Division of the Land it selfe: wherein the Soveraign assigneth to every man a portion, according as he, and not according as any Subject, or any number of them, shall judge agreeable to Equity, and the Common Good. … And though a People comming into possession of a land by warre, do not alwaies exterminate the antient Inhabitants … but leave to many, or most, or all of them their Estates; yet it is manifest they hold them afterwards, as of the Victors distribution; as the people of England held all theirs of William the Conquerour

3.2.3 Blackstone, Commentaries on the Laws of England (​​​​​​​vol. 2, p. 2) 3.2.3 Blackstone, Commentaries on the Laws of England (​​​​​​​vol. 2, p. 2)

William Blackstone, Commentaries on the Laws of England 
vol. 2, p. 2 (1765) 

There is nothing which so generally strikes the imagination, and engages the affections of mankind, as the right of property; or that sole and despotic dominion which one man claims and exercises over the external things of the world, in total exclusion of the right of any other individual in the universe. And yet there are very few, that will give themselves the trouble to consider the original and foundation of this right. Pleased as we are with the possession, we seem afraid to look back to the means by which it was acquired, as if fearful of some defect in our title; or at best we rest satisfied with the decision of the laws in our favour, without examining the reason or authority upon which those laws have been built. We think it enough that our title is derived by the grant of the former proprietor, by descent from our ancestors, or by the last will and testament of the dying owner; not caring to reflect that (accurately and strictly speaking) there is no foundation in nature or in natural law, why a set of words upon parchment should convey the dominion of land; why the son should have a right to exclude his fellow creatures from a determinate spot of ground, because his father had done so before him; or why the occupier of a particular field or of a jewel, when lying on his death-bed and no longer able to maintain possession, should be entitled to tell the rest of the world which of them should enjoy it after him. These enquiries, it must be owned, would be useless and even troublesome in common life. It is well if the mass of mankind will obey the laws when made, without scrutinizing too nicely into the reasons of making them. 

3.2.4 John Locke, Second Treatise of Civil Government (Ch. 5) 3.2.4 John Locke, Second Treatise of Civil Government (Ch. 5)

John Locke, Second Treatise of Civil Government 

Ch. 5 (1690) 

Though the earth, and all inferior creatures, be common to all men, yet every man has a property in his own person: this no body has any right to but himself. The labour of his body, and the work of his hands, we may say, are properly his. Whatsoever then he removes out of the state that nature hath provided, and left it in, he hath mixed his labour with, and joined to it something that is his own, and thereby makes it his property. It being by him removed from the common state nature hath placed it in, it hath by this labour something annexed to it, that excludes the common right of other men: for this labour being the unquestionable property of the labourer, no man but he can have a right to what that is once joined to, at least where there is enough, and as good, left in common for others. 

He that is nourished by the acorns he picked up under an oak, or the apples he gathered from the trees in the wood, has certainly appropriated them to himself. No body can deny but the nourishment is his. I ask then, when did they begin to be his? when he digested? or when he eat? or when he boiled? or when he brought them home? or when he picked them up? and it is plain, if the first gathering made them not his, nothing else could. That labour put a distinction between them and common: that added something to them more than nature, the common mother of all, had done; and so they became his private right. And will any one say, he had no right to those acorns or apples, he thus appropriated, because he had not the consent of all mankind to make them his? Was it a robbery thus to assume to himself what belonged to all in common? If such a consent as that was necessary, man had starved, notwithstanding the plenty God had given him…. 

But the chief matter of property being now not the fruits of the earth, and the beasts that subsist on it, but the earth itself; as that which takes in and carries with it all the rest; I think it is plain, that property in that too is acquired as the former. As much land as a man tills, plants, improves, cultivates, and can use the product of, so much is his property. He by his labour does, as it were, inclose it from the common. Nor will it invalidate his right, to say every body else has an equal title to it; and therefore he cannot appropriate, he cannot inclose, without the consent of all his fellow-commoners, all mankind. God, when he gave the world in common to all mankind, commanded man also to labour, and the penury of his condition required it of him. God and his reason commanded him to subdue the earth, i.e. improve it for the benefit of life, and therein lay out something upon it that was his own, his labour. He that in obedience to this command of God, subdued, tilled and sowed any part of it, thereby annexed to it something that was his property, which another had no title to, nor could without injury take from him. 

Nor was this appropriation of any parcel of land, by improving it, any prejudice to any other man, since there was still enough, and as good left; and more than the yet unprovided could use…. 

God gave the world to men in common; but since he gave it them for their benefit, and the greatest conveniencies of life they were capable to draw from it, it cannot be supposed he meant it should always remain common and uncultivated. He gave it to the use of the industrious and rational, (and labour was to be his title to it;) not to the fancy or covetousness of the quarrelsome and contentious. He that had as good left for his improvement, as was already taken up, needed not complain, ought not to meddle with what was already improved by another’s labour: if he did, it is plain he desired the benefit of another’s pains, which he had no right to, and not the ground which God had given him in common with others to labour on, and whereof there was as good left, as that already possessed, and more than he knew what to do with, or his industry could reach to. 

… To which let me add, that he who appropriates land to himself by his labour, does not lessen, but increase the common stock of mankind: for the provisions serving to the support of human life, produced by one acre of inclosed and cultivated land, are (to speak much within compass) ten times more than those which are yielded by an acre of land of an equal richness lying waste in common. And therefore he that incloses land, and has a greater plenty of the conveniencies of life from ten acres, than he could have from an hundred left to nature, may truly be said to give ninety acres to mankind: for his labour now supplies him with provisions out of ten acres, which were but the product of an hundred lying in common. I have here rated the improved land very low, in making its product but as ten to one, when it is much nearer an hundred to one: for I ask, whether in the wild woods and uncultivated waste of America, left to nature, without any improvement, tillage or husbandry, a thousand acres yield the needy and wretched inhabitants as many conveniencies of life, as ten acres of equally fertile land do in Devonshire, where they are well cultivated? 

…Thus labour, in the beginning, gave a right of property, wherever any one was pleased to employ it upon what was common, which remained a long while the far greater part, and is yet more than mankind makes use of. Men, at first, for the most part, contented themselves with what unassisted nature offered to their necessities: and though afterwards, in some parts of the world, (where the increase of people and stock, with the use of money, had made land scarce, and so of some value) the several communities settled the bounds of their distinct territories, and by laws within themselves regulated the properties of the private men of their society, and so, by compact and agreement, settled the property which labour and industry began; and the leagues that have been made between several states and kingdoms, either expresly or tacitly disowning all claim and right to the land in the others possession, have, by common consent, given up their pretences to their natural common right, which originally they had to those countries, and so have, by positive agreement, settled a property amongst themselves, in distinct parts and parcels of the earth… 

… Thus in the beginning all the world was America…. 

3.2.5 Herman Melville, Moby-Dick (​​​​​​​p. 375 (1922)) 3.2.5 Herman Melville, Moby-Dick (​​​​​​​p. 375 (1922))

Herman Melville, Moby-Dick 
p. 375 (1922) [1892] 

What was America in 1492 but a Loose-Fish, in which Columbus struck the Spanish standard by way of waifing it for his royal master and mistress? What was Poland to the Czar? What Greece to the Turk? What India to England? What at last will Mexico be to the United States? All Loose-Fish. 

Federal Land Patent to William McIntosh 

3.2.6 Mabo v. Queensland (No. 2) 3.2.6 Mabo v. Queensland (No. 2)

Mabo v. Queensland (No. 2) [“Mabo’s Case”] 

High Court of Australia, (1992) 175 C.L.R. 1 

BRENNAN J. 

The Murray Islands lie in the Torres Strait, at about 10 degrees S. Latitude and 144 degrees E. Longitude. They are the easternmost of the Eastern Islands of the Strait. Their total land area is of the order of 9 square kilometres. The biggest is Mer (known also as Murray Island), oval in shape about 2.79 kms long and about 1.65 kms across. … The people who were in occupation of these Islands before first European contact and who have continued to occupy those Islands to the present day are known as the Meriam people. … The Meriam people of today retain a strong sense of affiliation with their forbears and with the society and culture of earlier times. They have a strong sense of identity with their Islands. The plaintiffs are members of the Meriam people. In this case, the legal rights of the members of the Meriam people to the land of the Murray Islands are in question. 

… It may be assumed that on 1 August 1879 the Meriam people knew nothing of the events in Westminster and in Brisbane that effected the annexation of the Murray Islands and their incorporation into Queensland and that, had the Meriam people been told of the Proclamation [of annexation] made in Brisbane on 21 July 1879, they would not have appreciated its significance. The legal consequences of these events are in issue in this case. Oversimplified, the chief question in this case is whether these transactions had the effect on 1 August 1879 of vesting in the Crown absolute ownership of, legal possession of and exclusive power to confer title to, all land in the Murray Islands. The defendant submits that that was the legal consequence of the Letters Patent and of the events which brought them into effect. If that submission be right, the Queen took the land occupied by Meriam people on 1 August 1879 without their knowing of the expropriation; they were no longer entitled without the consent of the Crown to continue to occupy the land they had occupied for centuries past. 

…In discharging its duty to declare the common law of Australia, this Court is not free to adopt rules that accord with contemporary notions of justice and human rights if their adoption would fracture the skeleton of principle which gives the body of our law its shape and internal consistency. Australian law is not only the historical successor of, but is an organic development from, the law of England. Although our law is the prisoner of its history, it is not now bound by decisions of courts in the hierarchy of an Empire then concerned with the development of its colonies…. It is not possible, a priori, to distinguish between cases that express a skeletal principle and those which do not, but no case can command unquestioning adherence if the rule it expresses seriously offends the values of justice and human rights (especially equality before the law) which are aspirations of the contemporary Australian legal system. If a postulated rule of the common law expressed in earlier cases seriously offends those contemporary values, the question arises whether the rule should be maintained and applied. Whenever such a question arises, it is necessary to assess whether the particular rule is an essential doctrine of our legal system and whether, if the rule were to be overturned, the disturbance to be apprehended would be disproportionate to the benefit flowing from the overturning. 

… International law [at the time of colonization of Australia by Britain] recognized conquest, cession, and occupation of territory that was terra nullius as three of the effective ways of acquiring sovereignty…. Various justifications for the acquisition of sovereignty over the territory of “backward peoples” were advanced. The benefits of Christianity and European civilization had been seen as a sufficient justification from mediaeval times. Another justification for the application of the theory of terra nullius to inhabited territory—a justification first advanced by Vattel at the end of the 18th century—was that new territories could be claimed by occupation if the land were uncultivated, for Europeans had a right to bring lands into production if they were left uncultivated by the indigenous inhabitants. 

… The fiction by which the rights and interests of indigenous inhabitants in land were treated as non-existent was justified by a policy which has no place in the contemporary law of this country…. Whatever the justification advanced in earlier days for refusing to recognize the rights and interests in land of the indigenous inhabitants of settled colonies, an unjust and discriminatory doctrine of that kind can no longer be accepted.… It is contrary both to international standards and to the fundamental values of our common law to entrench a discriminatory rule which, because of the supposed position on the scale of social organization of the indigenous inhabitants of a settled colony, denies them a right to occupy their traditional lands. It was such a rule which evoked from Deane J.[, in] Gerhardy v. Brown (1985) 159 CLR 70, at p. 149[,] the criticism that— 

“the common law of this land has still not reached the stage of retreat from injustice which the law of Illinois and Virginia had reached in 1823 when Marshall C.J., in Johnson v. McIntosh, accepted that, subject to the assertion of ultimate dominion (including the power to convey title by grant) by the State, the ‘original inhabitants’ should be recognized as having ‘a legal as well as just claim’ to retain the occupancy of their traditional lands”. 

However, recognition by our common law of the rights and interests in land of the indigenous inhabitants of a settled colony would be precluded if the recognition were to fracture a skeletal principle of our legal system.… 

The land law of England is based on the doctrine of tenure. In English legal theory, every parcel of land in England is held either mediately or immediately of the King who is the Lord Paramount; the term “tenure” is used to signify the relationship between tenant and lord, not the relationship between tenant and land…. When the Crown acquired territory outside England which was to be subject to the common law, there was a natural assumption that the doctrine of tenure should be the basis of the land law. Perhaps the assumption did not have to be made…. 

By attributing to the Crown a radical title** to all land within a territory over which the Crown has assumed sovereignty, the common law enabled the Crown, in exercise of its sovereign power, to grant an interest in land to be held of the Crown or to acquire land for the Crown’s demesne. … But it is not a corollary of the Crown’s acquisition of a radical title to land in an occupied territory that the Crown acquired absolute beneficial ownership of that land to the exclusion of the indigenous inhabitants.… Nor is it necessary to the structure of our legal system to refuse recognition to the rights and interests in land of the indigenous inhabitants…. 

Recognition of the radical title of the Crown is quite consistent with recognition of native title to land, for the radical title, without more, is merely a logical postulate required to support the doctrine of tenure (when the Crown has exercised its sovereign power to grant an interest in land) and to support the plenary title of the Crown (when the Crown has exercised its sovereign power to appropriate to itself ownership of parcels of land within the Crown’s territory). Unless the sovereign power is exercised in one or other of those ways, there is no reason why land within the Crown’s territory should not continue to be subject to native title. It is only the fallacy of equating sovereignty and beneficial ownership of land that gives rise to the notion that native title is extinguished by the acquisition of sovereignty. 

…. The ownership of land within a territory in the exclusive occupation of a people must be vested in that people: land is susceptible of ownership, and there are no other owners.… Of course, since European settlement of Australia, many clans or groups of indigenous people have been physically separated from their traditional land and have lost their connexion with it. But that is not the universal position. It is clearly not the position of the Meriam people. Where a clan or group has continued to acknowledge the laws and (so far as practicable) to observe the customs based on the traditions of that clan or group, whereby their traditional connexion with the land has been substantially maintained, the traditional community title of that clan or group can be said to remain in existence. The common law can, by reference to the traditional laws and customs of an indigenous people, identify and protect the native rights and interests to which they give rise. However, when the tide of history has washed away any real acknowledgment of traditional law and any real observance of traditional customs, the foundation of native title has disappeared. A native title which has ceased with the abandoning of laws and customs based on tradition cannot be revived for contemporary recognition. … Once traditional native title expires, the Crown’s radical title expands to a full beneficial title, for then there is no other proprietor than the Crown. 

It follows that a right or interest possessed as a native title cannot be acquired from an indigenous people by one who, not being a member of the indigenous people, does not acknowledge their laws and observe their customs; nor can such a right or interest be acquired by a clan, group or member of the indigenous people unless the acquisition is consistent with the laws and customs of that people. Such a right or interest can be acquired outside those laws and customs only by the Crown. 

… Sovereignty carries the power to create and to extinguish private rights and interests in land within the Sovereign’s territory. It follows that, on a change of sovereignty, rights and interests in land that may have been indefeasible under the old regime become liable to extinction by exercise of the new sovereign power. The sovereign power may or may not be exercised with solicitude for the welfare of indigenous inhabitants but, in the case of common law countries, the courts cannot review the merits, as distinct from the legality, of the exercise of sovereign power. … However, the exercise of a power to extinguish native title must reveal a clear and plain intention to do so, whether the action be taken by the Legislature or by the Executive…. A Crown grant which vests in the grantee an interest in land which is inconsistent with the continued right to enjoy a native title in respect of the same land necessarily extinguishes the native title…. Where the Crown grants land in trust or reserves and dedicates land for a public purpose, the question whether the Crown has revealed a clear and plain intention to extinguish native title will sometimes be a question of fact, sometimes a question of law and sometimes a mixed question of fact and law. Thus, if a reservation is made for a public purpose other than for the benefit of the indigenous inhabitants, a right to continued enjoyment of native title may be consistent with the specified purpose—at least for a time—and native title will not be extinguished. But if the land is used and occupied for the public purpose and the manner of occupation is inconsistent with the continued enjoyment of native title, native title will be extinguished. … [W]here the Crown has not granted interests in land or reserved and dedicated land inconsistently with the right to continued enjoyment of native title by the indigenous inhabitants, native title survives and is legally enforceable. 

[The Court declared that the Murray Islands are not crown lands, that the Meriam people were entitled to “possession, occupation, use and enjoyment” of the island of Mer (excluding certain parcels leased or physically used by the Australian, provincial, or local governments), and that the Meriam people’s right to Mer is subject to the power of the Queensland government to extinguish it by law.] 

MASON C.J. and McHUGH J. 

We agree with the reasons for judgment of Brennan J. and with the declaration which he proposes. 

In the result, six [out of seven] members of the Court (Dawson J. dissenting) are in agreement that the common law of this country recognizes a form of native title which, in the cases where it has not been extinguished, reflects the entitlement of the indigenous inhabitants, in accordance with their laws or customs, to their traditional lands and that, subject to the effect of some particular Crown leases, the land entitlement of the Murray Islanders in accordance with their laws or customs is preserved, as native title, under the law of Queensland. The main difference between those members of the Court who constitute the majority is that, … neither of us nor Brennan J. agrees with the conclusion to be drawn from the judgments of Deane, Toohey and Gaudron JJ. that, at least in the absence of clear and unambiguous statutory provision to the contrary, extinguishment of native title by the Crown by inconsistent grant is wrongful and gives rise to a claim for compensatory damages. We note that the judgment of Dawson J. supports the conclusion of Brennan J. and ourselves on that aspect of the case since his Honour considers that native title, where it exists, is a form of permissive occupancy at the will of the Crown. 

We are authorized to say that the other members of the Court agree with what is said in the preceding paragraph about the outcome of the case. 

[Opinions of Toohey and Gaudron JJ. and Dawson J. omitted.] 

 

Footnote **: * [Eds.—“Radical title” is a subtle and unsettled concept; it may refer here to the common-law principle that the government—i.e., the crown—is the ultimate source of property rights in land within the territory subject to its jurisdiction.]  

3.2.7 Allocation of Land: Notes + Questions 3.2.7 Allocation of Land: Notes + Questions

Notes and Questions 

1. A system of land ownership founded on violent conquest strikes us as arbitrary and unjustifiable today. Both cases you read seem to reflect this view in their rhetoric. But do they implement such a view in their dispositions of the claims before them? Or do they follow Blackstone’s advice to “obey the laws when made, without scrutinizing too nicely into the reasons of making them”? 

Chief Justice Marshall seems almost embarrassed to confirm the “extravagant…pretension” that European discovery and conquest is not only a legitimate source of land titles in the United States, but the only legitimate source of such titles. But he does so anyway. Why? 

Justice Brennan is even more forceful, finding the European doctrine of “an unjust and discriminatory doctrine of that kind can no longer be accepted.” But is the rule he announces any different than the rule of Johnson v. M’Intosh? If so, how? 

Can we think of a better justification for allocating ownership of land? What allocation rule would result from such a better justification? If we could come up with a better justified principle for allocating initial ownership of land than violent conquest, could we simply implement a system based on that principle tomorrow? If not, what has become of Judge McCarthy’s defiant assertion in Popov v. Hayashi that “[w]e are a nation governed by law, not by brute force”? Is there something different about land that makes allocation by “brute force” more acceptable? 

 

2. Wrong + Time = Right? Perhaps the distinction between Popov v. Hayashi and Johnson v. M’Intosh has to do with how much time has passed since the violent dispossession of the aggrieved plaintiff. Does the fact that a thousand years have passed since William the Conqueror make his expropriation of land from the Anglo-Saxons any less unjust? What about the five hundred years since European discovery of the Americas? The two hundred years since the British colonization of Australia? If the United States invaded a foreign country—say, somewhere in the Middle East—tomorrow, and purported to sell to an American corporation legal title to land in that country that was in possession of natives claiming ownership under the laws of the conquered nation, would you expect the dispossessed natives to have a legal remedy? In what court? 

Note that the major split between the Justices in Mabo was not over the existence of native title, but on its scope. Three (of seven) Justices would have held that “If common law native title is wrongfully extinguished by the Crown, … compensatory damages can be recovered provided the proceedings for recovery are instituted within the period allowed by applicable limitations provisions,” and that extinguishment by inconsistent grant in the absence of an Act of Parliament is wrongful. Opinion of Toohey and Gaudron JJ., ¶ 64-65. We will consider how the passage of time can affect an owner’s ability to assert their rights in our units on Found and Stolen Property and on Adverse Possession. 

 

3. Historical Injustices and Reparations. Should injuries to persons long dead, inflicted by persons long dead, be remediable? Are the descendants of the wronged individuals the proper recipients of such a remedy? Should the descendants of the inflicters of the injury be held liable? 

In the United States, these are recurring issues that arise in discussions of the dispossession and genocide of Native Americans and the enslavement of kidnapped Africans and their descendants. See, e.g., Ta-Nehisi Coates, The Case for Reparations, THE ATLANTIC (June 2014), available at http://www.theatlantic.com/features/archive/2014/05/the-case-for-reparations/361631/ (citing early American examples of reparations of former slaves, cataloguing the continued injuries inflicted on African-Americans by the discrimination they face in American society, and laying out the case for a more comprehensive reparations program). Reparations are also the subject of serious philosophical, political, and legal discussion. Consider the following excerpt from Carol Rose, The Moral Subject of Property, 48 WM. & MARY L. REV. 1897, 1906-07 (2006) (footnotes omitted): 

Property, as an institution, requires stability in people’s expectations about their own and other people’s claims. This is why property law has several claims-clearing devices that substitute Owner #2 for Owner #1 when the claims of Owner #1 have not been sufficiently publicized, and when most people think that Owner #2 is the true owner even though she is not. Adverse possession is a classic example of this sort of claims-clearing device.** Unfortunately, Owner #2’s claims may have arisen in dubious circumstances or even through force or fraud, and that fact can undermine confidence in the entire institution. 

Contemporary Russia is a case in point, where major capitalist figures are widely regarded as the beneficiaries of insider favoritism and horrifically shady practices. Should their great wealth be recognized, simply for the sake of getting on with things and letting a modern economy unroll? Or would some kind of redistribution actually lead to greater stability? 

Historic injustices create another source of unease: Palestinians vis-à-vis Israelis, former East European landowners vis-à-vis the newcomers under Soviet rule, numerous indigenous groups vis-à-vis the settler societies that displaced them, descendants of slaves vis-à-vis the descendants of slave-owners. Settling all those scores could be hugely disruptive, and the passage of time itself makes proposed settlements morally ambiguous, because the original victims and perpetrators often are no longer on the scene. Why charge A in favor of B, when neither A nor B were personally involved in the past injustice? Moreover, settlements could leave open the origins of the displaced persons’ own prior claims, as in the case of former aristocrats’ plantations in East Germany. Just whom did their ancestors displace, far back in the Middle Ages? And so on back in time. 

The age-old acquisition problem is not very salient to most property regimes, however, even though it bubbles hotly at the center in some locales. Issues of this kind usually become peripheral because we basically follow Blackstone’s advice: we forget about the questionable origins of title. … By forgetting about origins we can keep on acquiring, investing, trading, and generally making ourselves wealthier. The larger public good of stable claims normally outweighs the private lapses that were entailed in some of those claims. But not surprisingly, on occasion the situation is reversed: unjust acquisitions may seem so gross as to eat away even the middle ground morality that makes property regimes possible. If you think that all those who succeed are thieves, why not be a thief yourself? That rhetorical question turns tit-for-tat practitioners into larcenists. Under such circumstances, public morality—even in quest of stability for property—could require some kind of restitutionary gesture, or at least some acknowledgment of past injustice. 

For further philosophical treatments of reparations and responsibility for ancient wrongs, see George Sher, Transgenerational Compensation, 33 PHILOS. & PUB. AFF. 181 (2005) (attempting to justify reparations); Christopher W. Morris, Existential Limits to the Rectification of Past Wrongs, 21 AM. PHILOS. Q. 175 (1984) (casting doubt on the moral argument for reparations); Eric A. Posner & Adrian Vermeule, Reparations for Slavery and Other Historical Injustices, 103 COLUM. L. REV. 689 (2003) (addressing both philosophical and legal issues in reparations programs). 

 

4. Is the United States’ dispossession of Native Americans really a “historical” injustice? Professor Joseph Singer has long faulted the American legal system for its continued mistreatment of Native Americans: 

[T]itle to land in the United States rests on the forced taking of land from first possessors – the very opposite of respect for first possession. Conquest is a mode of original acquisition that we cannot sweep under the rug by pretending that it accords with any recognizable principle of justice. And conquest, unfortunately, is where American history starts – as does the title to almost every parcel of land in the United States. This is a highly inconvenient (not to say stunningly demoralizing) fact, not least of all to the Indian nations that continue to inhabit the North American continent…. 

Many of us protect ourselves from having to think too deeply about conquest by distancing ourselves from it. … If we can relegate conquest to the distant past, we can concentrate instead on the fact that the United States was founded on respect for property rights. We do not acquire property by conquest today. 

This comforting story is misleading at best and false at worst. We cannot comfort ourselves with the idea that conquest became a thing  of the past with the American Revolution, independence from Great Britain, and the adoption of the U.S. Constitution. 

Joseph William Singer, Original Acquisition of Property: From Conquest & Possession to Democracy & Equal Opportunity, 86 IND. L.J. 763, 766-67 (2011) (reproduced with permission of the author). As Professor Singer explains, id. at 767-68, most of the federal government’s dispossession of Native American land occurred during the 19th century. During the early 20th century—while the Supreme Court was gaining a reputation for striking down state economic legislation in the name of protecting freedom of contract and private property (the so-called “Lochner era”*)—the United States forcibly took two-thirds of the remaining lands of the Indian nations. The Supreme Court held in 1955 that Alaska natives possessed merely a license to live on the land – revocable permission from whites to occupy Alaskan territory. As recently as 2009, the Supreme Court held that the Navajo Nation had no right to sue the federal government for damages where the Secretary of the Interior was alleged to have colluded with a mining company to undercompensate the tribe for mining rights on lands held under “joint title” between the Navajo and the United States (by law, the Secretary must approve any leases of tribal land for mining purposes). United States v. Navajo Nation, 556 U.S. 287 (2009). As Professor Singer reminds us, the conquest is not over. 

 

Footnote * * [Eds.—We will discuss adverse possession in a subsequent chapter.

3.3 C. Ratione Soli and Fugitive Resources: When Chattels Meet Land 3.3 C. Ratione Soli and Fugitive Resources: When Chattels Meet Land

Images: The Book of Duck Decoys, pp. 34, 35, 166 (1886)
available at: https://archive.org/details/bookofduckdecoysx00payn/page/n7

3.3.1 1. Wild Animals on Owned Land 3.3.1 1. Wild Animals on Owned Land

3.3.1.1 Keeble v. Hickeringill 3.3.1.1 Keeble v. Hickeringill

Keeble v. Hickeringill 

(1707) 103 Eng. Rep. 1127, 11 East 574 (Q.B.) 

Action upon the case. Plaintiff declares that he was, 8th November in the second year of the Queen, lawfully possessed of a close of land called Minott’s Meadow, [where he maintained] a decoy pond, to which divers wildfowl used to resort and come: and the plaintiff had at his own costs and charges prepared and procured divers decoy ducks, nets, machines and other engines for the decoying and taking of the wildfowl, and enjoyed the benefit in taking them: the defendant, knowing which, and intending to damnify the plaintiff in his vivary, and to fright and drive away the wildfowl used to resort thither, and deprive him of his profit, did, on the 8th of November, resort to the head of the said pond and vivary, and did discharge six guns laden with gunpowder, and with the noise and stink of the gunpowder did drive away the wildfowl then being in the pond: and on the 11th and 12th days of November the defendant, with design to damnify the plaintiff, and fright away the wildfowl, did place himself with a gun near the vivary, and there did discharge the said gun several times that was then charged with the gunpowder against the said decoy pond, whereby the wildfowl were frighted away, and did forsake the said pond. Upon not guilty pleaded, a verdict was found for the plaintiff and 20£ damages. 

HOLT C.J. 

I am of opinion that this action doth lie. It seems to be new in its instance, but is not new in the reason or principle of it. For, 1st, this using or making a decoy is lawful. 2dly, this employment of his ground to that use is profitable to the plaintiff, as is the skill and management of that employment. As to the first, every man that hath a property may employ it for his pleasure and profit, as for alluring and procuring decoy ducks to come to his pond. … Then when a man useth his art or his skill to take them, to sell and dispose of for his profit; this is his trade; and he that hinders another in his trade or livelihood is liable to an action for so hindering him.… 

[W]here a violent or malicious act is done to a man’s occupation, profession, or way of getting a livelihood; there an action lies in all cases. But if a man doth him damage by using the same employment; as if Mr. Hickeringill had set up another decoy on his own ground near the plaintiff’s, and that had spoiled the custom of the plaintiff, no action would lie, because he had as much liberty to make and use a decoy as the plaintiff. This is like the case of 11 H. 4, 47. One schoolmaster sets up a new school to the damage of an ancient school, and thereby the scholars are allured from the old school to come to his new. (The action was held there not to lie.) But suppose Mr. Hickeringill should lie in the way with his guns, and fright the boys from going to school, and their parents would not let them go thither; sure that schoolmaster might have an action for the loss of his scholars. ... 

There was an objection that did occur to me, though I do not remember it to be made at the Bar; which is, that it is not mentioned in the declaration what number or nature of wildfowl were frighted away by the defendant’s shooting. … Where a man brings trespass for taking his goods, he must declare of the quantity, because he, by having had the possession, may know what he had, and therefore must know what he lost. … The plaintiff in this case brings his action for the apparent injury done him in the use of that employment of his freehold, his art, and skill, that he uses thereby. … And when we do know that of long time in the kingdom these artificial contrivances of decoy ponds and decoy ducks have been used for enticing into those ponds wildfowl, in order to be taken for the profit of the owner of the pond, who is at the expence of servants, engines, and other management, whereby the markets of the nation may be furnished; there is great reason to give encouragement thereunto; that the people who are so instrumental by their skill and industry so to furnish the markets should reap the benefit and have their action. But, in short, that which is the true reason is that this action is not brought to recover damage for the loss of the fowl, but for the disturbance. 

3.3.1.2 Keeble v. Hickeringill: Notes + Questions 3.3.1.2 Keeble v. Hickeringill: Notes + Questions

Notes and Questions 

1. What was Keeble suing Hickeringill for, and why did he prevail? Was his claim a property claim? (A related question: what is an “[a]ction on the case”? Did you look it up?) If a property claim, what was the res—the thing that Keeble claimed as his property? If not a property claim, what might this case be doing in your Property casebook? 

 

2. Whether Keeble is a property case or not, where did the 20£ damages measure come from? 

 

3. You may recall that Keeble was discussed by Justice Tompkins in Pierson v. Post, though not by name. (See page 5 note *, supra.) Justice Tompkins referred to different reports of the case than the one you read. The existence of multiple, sometimes conflicting, reports is fairly common for earlier English cases and even for some early American cases. In earlier days, judges would announce their opinions from the bench, and reporters—usually entrepreneurial lawyers—would take notes of these opinions (often along with the arguments of counsel), collect them, and publish them as a reference for the bar. These days judges issue written opinions, which are collected and published in “official” reporters as written. But for earlier cases, the content of a precedential authority depended on the transcription of the reporter, and reporters could be unreliable. The Modern King’s Bench (“Mod.”) and Salkeld (“Salk.”) reports cited by Justice Tompkins are today believed to be less reliable than the East report you just read, which the reporter claimed to have based on a copy of Lord Chief Justice Holt’s own manuscript. Unfortunately for Justice Tompkins, the East report of Keeble was not published until 1815 (ten years after Pierson). Had this report been available to the New York Supreme Court in 1805, do you think Pierson would have come out differently? 

3.3.1.3 A Note on Ratione Soli  3.3.1.3 A Note on Ratione Soli 

A Note on Ratione Soli 

Lord Holt, who decided Keeble, is also a key—if perhaps slightly confusing—expositor of the related and peculiarly English doctrine of ratione soli (Latin for “by reason of the soil”), also referred to in Pierson. Ratione soli is the principle that the right to take possession of wild animals belongs to the owner of the land where the animal may be found; thus title to any animals captured or killed on owned land automatically vests in the landowner. The English rule is in stark opposition to the civil (i.e., Roman) law rule, reflected in the Institutes of Justinian, * which is that the captor of a wild animal acquires property rights in the animal wherever captured, though he may be liable in trespass to the owner of the real property on which the animal was pursued or taken. This distinction affects not only the right to possession of the animal itself, but also the measure of damages, because the damages from the trespass may be less than the value of the animal. 

A strong principle of ratione soli was consolidated in mid-19th century England as part of the class wars between the landed gentry—who passionately defended game hunting as an exclusive sport for the aristocracy—and the upwardly-mobile merchant classes and more desperate farmers and poachers—who saw game as a token of luxury and a means of sustenance, respectively. See generally Chester Kirby, The English Game Law System, 38 AM. HIST. REV. 240 (1933). The aristocrats won a decisive victory in a suit by a game merchant against certain servants of the Marquis of Exeter, who had forcibly seized several dozen rabbits purchased by the merchant for resale, on grounds that they had been poached from the Marquis’s lands. Blades v. Higgs, (1865) 11 Eng. Rep. 1474, 11 H.L.Cas. 621. The Law Lords ruled that wild animals are the property of the owner of the land on which they are taken, and that the Marquis’s servants were therefore within their rights in repossessing the rabbits. 

Ratione soli was initially rejected by the newly independent American states, in favor of a rule of “free taking.” This made some sense in the America of John Locke’s imagination: a vast, naturally bountiful, largely undeveloped, and sparsely populated continent. Moreover, “[i]n the New World, game was no sporting matter, but rather a source of food and clothing.” Thomas A. Lund, Early American Wildlife Law, 51 N.Y.U. L. REV. 703 (1976). Thus, for the first century of the new Republic’s life, landowners for the most part enjoyed no special privileges to wild animals on their otherwise idle land; hunters were presumed to be free to enter or cross unenclosed and undeveloped land in pursuit of game, even where that land was privately owned. Landowners could defeat this presumption by posting notices of their intent to exclude hunters at the boundaries of their property, but in practice posting was uncommon and generally ineffective for large holdings in the wilds of the frontier. Id. at 712-14. 

Over time, even the vast American continent saw its natural resources threatened with depletion by overexploitation, and its lands subject to increased development that conflicted with the free taking regime. Nevertheless, while a small number of American cases adopted ratione soli (see, e.g., Rexroth v. Coon, 23 A. 37 (R.I. 1885) (bees); Schulte v. Warren, 75 N.E. 783 (Ill. 1905) (fish)), the rule never took hold here as it did in England. Today, wild animals are subject to a variety of state and federal regulations that fairly comprehensively govern whether, when, and under what circumstances they may be hunted or captured, on the theory that wildlife is a common resource to be managed by the government for the benefit of the people. See generally Michael C. Blumm & Lucus Ritchie, The Pioneer Spirit and the Public Trust: The American Rule of Capture and State Ownership of Wildlife, 35 ENVIRON. L. 673 (2005). But a majority of states still allow licensed hunters to take or pursue game on unenclosed private land unless the landowner has posted against hunting or trespassing. Mark R. Sigman, Note, Hunting and Posting on Private Land in America, 54 DUKE L. J. 549, 558-68 (2004). 

One possible virtue of the doctrine of ratione soli is the same as the virtue of the punitive damages award in Jacque v. Steenberg Homes: it may marginally discourage trespasses on land by those who would trespass for the purpose of capturing wild animals. But at what cost? And do we really need ratione soli when, as Jacque makes clear, punitive damages are already available against trespassers? Or when, as Keeble makes clear, there are other legal remedies available against those who interfere with landowners’ efforts to exploit wild animals on their land? Is there any other principled justification for either ratione soli or free taking, or are the rules merely sops to particular political interests? In light of all this history, what do you think ought to be the legal rights of landowners with respect to wild animals that happen to be on their land? Why? Is there any reason landowners should have a superior claim to anyone else? 

 

*Footnote: * J. INST. 2.1.12. The Institutes are a portion of the massive codification of Roman law under Byzantine (Roman) Emperor Justinian I: the Corpus Iuris Civilis. The Corpus, in turn, is an important predecessor of most modern civil law systems, which prevail in Continental European nations and many of their former colonies. Unlike common-law systems, which prevail in England and most of its former colonies (including the United States, with the exception of Louisiana), legal authority in civil law systems derives not from caselaw, but from comprehensive statutory codes. A primary distinction between common law and civil law systems is the sharply diminished role of precedent in civil law adjudication. (Recall note 2 on page 94, supra.)  

3.3.2 2. Other Fugitive Resources: Water, Oil, and Gas 3.3.2 2. Other Fugitive Resources: Water, Oil, and Gas

3.3.2.1 Fugitive Resources: Intro 3.3.2.1 Fugitive Resources: Intro

Other Fugitive Resources: Water, Oil, and Gas 

We have studied a fair number of cases about property rights in wild animals. By now you may be asking yourself: who cares? This is, after all, an area of legal doctrine that you will almost certainly never encounter in your future career as a lawyer. Are we wasting your time? 

Obviously we don’t think so. We would offer two related reasons for studying this area of law: 

First: The study of these cases has introduced you to some accessible illustrations of how we might justify rules for allocating control over scarce resources among competing claimants. We have already seen several justifications for the rules we have studied—moral reasons, economic reasons, reasons grounded in administrability and in other pragmatic concerns. (See Section A, Note 1, supra.) These are the types of justifications that move courts and policymakers, and they are the kinds of justifications that lawyers must invoke in crafting legal arguments and explaining legal rules to their clients. 

Second: It is sometimes said that “the law is a seamless web.” One influential interpretation of this principle, offered by legal philosopher Ronald Dworkin, is that common-law judges must attempt to decide cases by reference to “a scheme of abstract and concrete principles that provides a coherent justification for all common law precedent.” Ronald Dworkin, Hard Cases, 88 HARV. L. REV. 1057, 1094 (1975). That is to say that a legal system’s rules should not only be justified according to discernable principles, they should be coherent: the principles that justify an outcome in one area of law should apply consistently to other areas of law to the extent possible. Thus, when deciding novel cases, common-law judges will have to infer what principles are consistent with—or fit—the entire corpus of cases that have been decided before, decide which among those principles best justifies the cases, and use that principle as a guide in deciding the novel case. 

At a more practical level, lawyers typically reason about novel cases by analogy to past cases in the same general doctrinal field. The common-law treatment of precedent, discussed above on page 26, note 2, is a special case of this more general principle. 

Thus, even though we don’t see many cases involving disputes over wild animals anymore, past judicial resolutions of those disputes will inform how we decide disputes over other resources that are similar in some way. We have seen this type of reasoning by analogy already, in Popov v. Hayashi: a baseball is not a wild animal, but Judge McCarthy thought cases about wild animals provided instruction for the dispute before him. (Query: Why might he have thought so?) With respect to the intersection of land and chattels, we can similarly see Keeble and the doctrines of ratione soli and free taking as reflecting principles applicable to fugitive resources: chattels that can move of their own accord from place to place, sometimes taking them onto owned land. There are plenty of valuable resources that share this quality, and many of them are the subject of heated legal disputes even today. We will focus here on two: water and oil. 

Water is essential to life, but it can also be put to a variety of other practical uses: irrigating farmland, extracting minerals from mines and oil or gas from wells, powering dams and mills, cooling industrial equipment, and as an input to manufacturing, for example. Fresh water from rainfall and snowmelt may flow over the surface of land, either free-flowing (particularly during heavy rains or spring thaws) or in defined channels as streams and lakes. Rain and snowmelt can also seep down and be absorbed by the earth as subsurface groundwater or deep aquifers. In either case, water has a fundamental physical connection to land, but it also moves freely over, under, and across land. (Sound familiar?) 

Both surface and subsurface waters are renewable; they are replenished by precipitation. But they’re still scarce. This scarcity comes in two basic forms, which map to the economic categories of stocks and flows. Depletion of a groundwater source at a rate exceeding its natural replenishment will eventually exhaust the stock—or finite total amount—of water at that source. A stream flows at a particular (though perhaps variable) rate, but that rate is primarily determined by ecological rather than human processes, so adding more users or more intense uses may not threaten future flows but does reduce the share of the flow available to each at any given time. Given these forms of scarcity, competition over water resources is inevitable, and property law may be called on to regulate that competition. 

Complicating the matter, the rate of renewal of water stocks and the magnitude of water flows vary from time to time and place to place: Hawaii gets a lot more rain than Nevada, and California got a lot more rain in 1983 than it did in 2013. Reflecting this natural diversity, the American states have devised two broad categories of common-law responses to the challenge of managing conflicts over access to water, epitomized by the two cases below. The first response, riparian rights, dominates in the wetter, eastern states, and was firmly established by our first case, Tyler v. Wilkinson. The second response, prior appropriation, prevails in the more arid western states, and is sometimes referred to as the “Colorado Rule” given its historic association with our second case, Coffin v. Left Hand Ditch Co. Both cases deal with rights to flows, in particular the flow of a river. As you read these cases, try to understand how the two systems differ, and what might explain or justify the difference. 

3.3.2.2 Tyler v. Wilkinson 3.3.2.2 Tyler v. Wilkinson

Circuit Court, D. Rhode Island.

[4 Mason, 397.] 1

TYLER et al. v. WILKINSON et al.

June Term, 1827.

1

[Reported by William P. Mason, Esq.]

STORY, Circuit Justice.

This is a very im­portant case, complicated in facts, and volu­minous in testimony. It will not, however, be necessary to go over the details of the proofs, or even of the arguments, urged at the bar, further than may serve to explain the opin­ion of the court, and give a clear understand­ing of the points in controversy.

The river Pawtucket forms a boundary line between the states of Massachusetts and Rhode Island, in that part of its course where it separates the town of North Providence from the town of Seekonk. It is a fresh water river, above the lower falls between these towns, and is there unaffected by the ebb or flow of the tide. At these falls there is an ancient dam, called the lower dam, extend­ing quite across the river, and several mills are built near it, as well on the eastern as on the western side of the river. The plaintiffs, together with some of the defendants, are the proprietors in fee of the mills and adjacent land on the eastern bank, and either by them­selves or their lessees are occupants of the same. The mills and land adjacent, on the western bank, are owned by some of the de­fendants. The lower dam was built as early as the year 1718, by the proprietors on both sides of the river, and is indispensable for the use of their mills respectively. There was previously an old dam on the western side, extending about three quarters of the way across the river, and a separate dam for a saw-mill on the east side. The lower dam was a substitute for both. About the year 1714 a canal was dug, or an old channel widened and cleared on the western side of the river, beginning at the river a few rods above the lower dam, and running round the west end thereof, until it emptied into the river about ten rods below the same dam. It has been long known by the name of “Ser­geant’s Trench,” and was originally cut for the passage of fish up and down the river; but having wholly failed for this purpose, about the year 1730 an anchor-mill and dam were built across it by the then proprietors of the land; and between that period and the year 1790, several other dams and mills were built over the same; and since that period more expensive mills have been built there, which are all owned by some of the defend­ants. About thirty years before the filing of the bill, to wit, in 1792, another dam was built across the river at a place above the head of the trench, and about 20 rods above the lower dam; and the mills on the upper dam, as well as those on Sergeant’s trench, are now supplied with water by proper flumes, &c. from the pond formed by the up­per dam. The proprietors of this last dam are also made defendants.

Without going into the particulars of the bill (for in consequence of intervening deaths and devises, the cause is now before the court upon a supplemental bill, in the nature of a bill of revivor), it is necessary to state, that the bill charges, that the owners of Sergeant's trench are entitled, as against the owners of the lower dam, only to what is called a waste-­water privilege, that is, to a right to use only such surplus water, as is not wanted by the owners of the lower dam and lands for any purposes whatever. In other words, that the right of the owners of Sergeant’s trench is a subservient right to that of the plaintiffs, and takes place only as to any water which the plaintiffs may not, from time to time, have any occasion to use for any mills erected, or to be erected, by them. It charges a fraud­ulent combination between the owners of the upper dam and Sergeant’s trench, injuriously to appropriate and use the water, and that the latter appropriate a great deal more water than they are entitled to by ancient usage, and waste the water to the injury of the plaintiffs. The object of the bill is to estab­lish the right of the plaintiffs, and to obtain an injunction and for general relief.

The principal points, which have been dis­cussed at the bar, are, first, what is the na­ture and extent of the right of the owners of Sergeant’s trench; and, secondly, whether that right has been exceeded by them to the injury of the plaintiffs.

Before proceeding to an examination of these points, it may be proper to ascertain the nature and extent of the right, which ripa­rian proprietors generally possess, to the waters of rivers flowing through their lands. Unless I am mistaken, this will relieve us from a great portion of the difficulties which incumber this cause, and lead us to a satis­factory conclusion upon its merits. I shall not attempt to examine the cases at large, or to reconcile the various dicta, which may be found in some of them. The task would be very onerous; and I am not aware that it would be very instructive. I have, however, read over all the cases on this subject, which were cited at the bar, or which are to be found in Mr. Angell’s valuable work on water courses, or which my own auxiliary re­searches have enabled me to reach. The gen­eral principles, which they contain and sup­port, I do not say in every particular instance, but with a very strong and controlling cur­rent of authority, appear to me to be the fol­lowing.

Prima facie every proprietor upon each bank of a river is entitled to the land, covered with water, in front of his bank, to the middle thread of the stream, or, as it is commonly ex­pressed, usque ad filum aquae. In virtue of this ownership he has a right to the use of the water flowing over it in its natural cur­rent, without diminution or obstruction. But, strictly speaking, he has no property in the water itself; but a simple use of it, while it passes along. The consequence of this prin­ciple is, that no proprietor has a right to use the water to the prejudice of another. It is wholly immaterial, whether the party be a pro­prietor above or below, in the course of the river; the right being common to all the pro­prietors on the river, no one has a right to diminish the quantity which will, according to the natural current, flow to a proprietor be­low, or to throw it back upon a proprietor above. This is the necessary result of the perfect equality of right among all the pro­prietors of that, which is common to all. The natural stream, existing by the bounty of Providence for the benefit of the land through which it flows, is an incident annexed, by op­eration of law, to the land itself. When I speak of this common right, I do not mean to be understood, as holding the doctrine, that there can be no diminution whatsoever, and no obstruction or impediment whatsoever, by a riparian proprietor, in the use of the water as it flows; for that would be to deny any valuable use of it. There may be, and there must be allowed of that, which is common to all, a reasonable use. The true test of the principle and extent of the use is, whether it is to the injury of the other, proprietors or not. There may be a diminution in quantity, or a retardation or acceleration of the natural current indispensable for the general and val­uable use of the water, perfectly consistent with the existence of the common right. The diminution, retardation, or acceleration, not positively and sensibly injurious by diminish­ing the value of the common right, is an im­plied element in the right of using the stream at all. The law here, as in many other cases, acts with a reasonable reference to public con­venience and general good, and it is not be­trayed into a narrow strictness, subversive of common sense, nor into an extravagant loose­ness, which would destroy private rights. The maxim is applied, “Sic utere tuo, ut non alienum laedas.”

But of a thing, common by nature, there may be an appropriation by general consent or grant. Mere priority of appropriation of running water, without such consent or grant, confers no exclusive right. It is not like the case of mere occupancy, where the first oc­cupant takes by force of his priority of oc­cupancy. That supposes no ownership already existing, and no right to the use already ac­quired. But our law annexes to the riparian proprietors the right to the use in common, as an incident to the land; and whoever seeks to found an exclusive use, must estab­lish a rightful appropriation in some manner known and admitted by the law. Now, this may be, either by a grant from all the pro­prietors, whose interest is affected by the particular appropriation, or by a long exclu­sive enjoyment, without interruption, which affords a just presumption of right. By our law, upon principles of public convenience, the term of twenty years of exclusive unin­terrupted enjoyment has been held a conclu­sive presumption of a grant or right. I say of a grant or right; for I very much doubt, whether the principle now acted upon, how­ever in its origin it may have been confined to presumptions of a grant, is now neces­sarily limited to considerations of this na­ture. The presumption is applied as a pre­sumption juris et de jure, wherever by pos­sibility a right may be acquired in any man­ner known to the law. Its operation has nev­er yet been denied in cases where personal disabilities of particular proprietors might have intervened, such as infancy, coverture, and insanity, and where, by the ordinary course of proceeding, grants would not be presumed. In these, and in like cases, there may be an extinguishment of right by posi­tive limitations of time, by estoppels, by stat­utable compensations and authorities, by elections of other beneficial bequests, by con­flicting equities, and by other means. The presumption would be just as operative as to these modes of extinguishment of a com­mon right as to the mode of extinguishment by grant.

These are the general principles, which ap­pear to me applicable to the present case. They will be found recognised in many cases; but are in none more fully and accurately weighed and discussed than in Bealey v. Shaw, 6 East, 208; Williams v. Morland, 2 Barn. & C. 910; and Wright v. Howard, 1 Sim. & S. 190,—in England; and in Ingra­ham v. Hutchinson, 2 Conn. 584; Merritt v. Parker, 1 Coxe [1 N. J. Law], 460; Palmer v. Mulligan. 3 Caines, 307; Platt v. Johnson, 15 Johns. 213; and Merritt v. Brinkerhoff, 17 Johns. 306,—in America.

With these principles in view, the general rights of the plaintiffs cannot admit of much controversy. They are riparian proprietors, and, as such, are entitled to the natural flow of the river without diminution to their in­jury. As owners of the lower dam, and the mills connected therewith, they have no rights beyond those of any other persons, who might have appropriated that portion of the stream to the use of their mills. That is, their rights are to be measured by the extent of their actual appropriation and use of the water for a period, which the law deems a conclusive presumption in favor of rights of this nature. In their character as mill-own­ers, they have no title to the flow of the stream beyond the water actually and legally appropriated to the mills; but in their char­acter as riparian proprietors, they have an­nexed to their lands the general flow of the river, so far as it has not been already ac­quired by some prior and legally operative ap­propriation. No doubt, then, can exist as to the right of the plaintiffs to the surplus of the natural flow of the stream not yet appro­priated. Their rights, as riparian proprie­tors, are general; and it is incumbent on the parties, who seek to narrow these rights, to establish by competent proofs their own title to divert and use the stream.

And this leads me to the consideration of the nature and extent of the rights of the trench owners. There is no doubt, that in point of law or fact, there may be a right to water of a very limited nature, and subservi­ent to the more general right of the riparian proprietors. It may arise from grant, and be affected by any considerations, conditions, and modifications, which the assent of the par­ties may impose; and where no such grant is established by written instruments, it may be inferred, like other grants, from long usage, and be governed by the limitations of that usage. The case of Bateson v. Green, 5 Term R. 411, is certainly good law; but it introduces no new principle. The doctrine of subservient rights and uses is probably as old as the common law itself. But in ques­tions of usage, the fact, how much water has been actually used, is not always decisive of the nature and extent of the right. Nor are occasional interruptions of the use, under pe­culiar circumstances, conclusive of a superior right to control and limit the entire use, to suspend it at pleasure, or destroy it at dis­cretion. The nature and object and value of the use are very material ingredients to ex­plain and qualify the effect of such interrup­tions. It is not, for instance, to be presum­ed that valuable mills will be erected to be fed by an artificial canal from a river, and the stream be indispensable for the support of such mills, and yet, that the right to the stream is so completely lodged in another, that it may be cut off or diminished, or sus­pended at pleasure; but, if there should not be water enough for the progressive wants of all, the riparian proprietor should reserve to himself the power of future appropriation for his own exclusive use. In such cases, reasonable presumption must be made from acts in their own nature somewhat equivocal and susceptible of different interpretations. The interruptions may arise from resistance to an attempt by the canal-owner to extend the reach of his dam farther into the river or the purpose of appropriating more water, or from a desire to prevent undue waste, in dry seasons, to the injury of the riparian proprietor. But the presumption of an absolute and controlling power over the whole flow, a continuing power of exclusive appropriation from time to time, in the riparian proprietor, as his wants or will may influence his choice, would require the most irresistible facts to support it. Men who build mills, and invest valuable capital in them, cannot be presum­ed, without the most conclusive evidence, to give their deliberate assent to the acceptance of such ruinous conditions. The general pre­sumption appears to me to be that which is laid down by Mr. Justice Abbott in Saunders v. Newman, 1 Barn. & Ald. 258: “When a mill has been erected upon a stream for a long period of time, it gives to the owner a right, that the water shall continue to flow to and from the mill in the manner in which it has been accustomed to flow during all that time. The owner is not bound to use the water in the same precise manner, or to apply it to the same mill; if he were, that would stop all improvements in machin­ery. If, indeed, the alterations made from time to time prejudice the right of the lower mill (i.e. by requiring more water), the case would be different.”

In this view of the matter, the proprietors of Sergeant’s trench are entitled to the use of so much of the water of the river as has been accustomed to flow through that trench to and from their mills (whether actually used or necessary for the same mills or not), during the twenty years last before the in­stitution of this suit, subject only to such qualifications and limitations, as have been acknowledged or rightfully exercised by the plaintiffs as riparian proprietors, or as own­ers of the lower mill-dam, during that period. But here their right stops; they have no right farther to appropriate any surplus water not already used by the riparian pro­prietors, upon the notion, that such water is open to the first occupiers. That surplus is the inheritance of the riparian proprietors, and not open to occupancy.

The question, then, resolves itself into a matter of fact:—What has been the quantity accustomed to flow in the trench, and what the qualifications and limitations accompany­ing the flow during this period? It appears to me most manifest from the general cur­rent of the evidence, that the trench pro­prietors do not hold a mere waste-water priv­ilege in the sense which the plaintiffs at­tribute to those terms. It would be almost incredible, that a priority of right should be reserved to the plaintiffs, as riparian pro­prietors, to use the water of the stream for any new mills to be erected from time to time by them, so as to entitle them, at their choice, to divert the whole from the trench. Nothing but the clearest proofs could estab­lish such a right, going, in the event, to the complete destruction of the mills erected on the trench. So far from such a pre-eminent right, as it is called, being justified by the evidence, it appears to me to be encountered by it at almost every step. The acts of the parties, at the different periods of their own­ership, are irreconcilable with such a sup­position. The answers of the defendants positively deny it. The most that can be pretended from any portion of the evidence is, that the proprietors of the mills on the lower dam did in dry seasons, when the wa­ter was scant, remove the temporary dams erected by the trench proprietors, to gain at those periods an additional supply of water. But these acts of interruption seem confined to the temporary dam so erected, and not designed as interruptions of the ordinary flow of the water by means of the permanent dam, or otherwise, into the trench. And what is very material, they were interrup­tions for the purpose of supplying their mills, then existing on the lower dam, with wa­ter. If, therefore, we give the fullest effect to this assertion of pre-eminent right, it must be limited, as it was exercised, to the uses of the mills then in existence, that is, to the usual priority of supply, which, in a conflict of right and a deficiency of water, they were accustomed to take and require. Such a pre-eminent right, founded merely in usage, for particular mills, must be confined to those mills, and cannot be admitted as proof of a general unlimited right over all the wa­ter for all future mills. If the trench own­ers could only claim a waste-water privilege, it was of waste-water not then appropriated or used by existing mills. In this view of the case, it would not help the plaintiffs; for it is not shown that the old mills would have sustained any injurious loss of water if no new mills had been built by the plaintiffs, requiring a further supply. But it cannot be disguised, that even this claim of right, so limited, has many difficulties to encounter. There is no uniform, clear, decisive evidence to support it. The evidence is contradictory, or inconclusive. There has been no acqui­escence in the acts of interruption of such an unequivocal nature and for such a pe­riod, as would justify the court to infer any admission of right by the trench owners, or any original reservation on the part of the plaintiffs. On the contrary, the matter of right seems always to have been in contestation. The most that the court can say is, that the claim of pre-eminent right is sus­pended in doubt; and that it ought not, un­der such circumstances, to give relief against the positive denials of the owners.

My opinion accordingly is that the trench owners have an absolute right to the quantity of water which has usually flowed there­in, without any adverse right on the plain­tiffs to interrupt that flow in dry seasons, when there is a deficiency of water. But the trench owners have no right to increase that flow; and whatever may be the mills or uses, to which they may apply it, they are limited to the accustomed quantity, and may not exceed it.

What that quantity is, has not been ascer­tained by any precise admeasurement. The trench owners in their answer do not pre­tend, that they have acquired any new rights by an additional uninterrupted use within the last twenty years. On the contrary, they assert, that the quantity which now flows, is in conformity to the ancient usage, and does not exceed it. They assert, “that the pres­ent gate-hole, which leads the water from the said great flume [of the upper dam] into said trench, is about four feet wide, and fif­teen or sixteen inches deep; that the said gate-hole was made about one year after said upper dam was built, and that the di­versions thereof have never been altered from the time the same was first made, as aforesaid, to the present time.” If the fact be so, it furnishes some elements for a very correct admeasurement of their rights. The principal difficulty in applying it as an abso­lute measure, arises from the fact of there having been a gate in this gate-hole, put there at the time of the hole itself being made. This gate was removed at least ten years, and more probably from fifteen to twenty years, before the filing, of the bill. The plaintiffs insist, that this gate was de­signed to regulate the quantity of water to which the trench owners were entitled, and was adjusted accordingly. The latter ad­mit the fact of its existence, but assert its removal twenty years ago, and that “it was placed in said gate-hole by the owners of the shops and mills on said trench, and used by them to shut the water out of said trench, while they were repairing the same or the works thereon.” It is very difficult to as­certain, from the evidence, whether any posi­tive limitation of right can be deemed to have been originally intended by it. It was hoisted and lowered by the trench owners, as well as by others, occasionally, while it existed, and its removal for a number of years affords some presumption, that it was not deemed a fixed regulator of right. Its height varied at different times according to circumstances; and it is not easy to infer that to be a positive gauge of quantity, agreed on by the parties, which was not im­movable in its position.

There was an agreement entered into in the year 1796 between the owners of the upper dam, of the trench, and of the mills on the west side of the river (which is set out in the bill, and admitted by the owners), which has been relied upon by both parties as explanatory of the rights of all concerned. The plaintiffs, and those under whom they claim, were not parties to it; but as matter of evidence, they have themselves relied on it, and complain of it, not on account of its incorrect statement of the matter of right, but of the intentional omission, fairly to car­ry it into effect. It begins as follows: “Whereas the ancient privilege of Sergeant’s trench or the shops thereon, has not been precisely ascertained, and whereas the own­ers thereof, the owners of the new upper dam, and the owners of the ancient mills at the falls are all interested therein, and in order to make each party right, and make the same as conveniently managed as may be, we, the subscribers, covenant and agree as follows: The owners of the upper dam hereby convey to the owners of the shops below a full and free liberty of passing and repassing on their land to the gate, when they think proper, for the regulating the water according to their right in the same. And the owners of the works below the falls have the same liberty to shut or hoist said gate for the same purpose, in as full man­ner as ever heretofore, by custom, usage, or contracts. And to prevent any difficulty about ascertaining the proportion of water fully due and belonging to said trench works, it is mutually agreed, that Benjamin Coz­zens, Jr. and Stephen Jenks, Jr. be and are hereby chosen to regulate and ascertain the same; and that the owners of the upper dam keep a suitable gate on their flume, suitable for conveying and regulating the said water, at their own expense. And that it is further agreed, that in case the said B. C. and S. J. do not agree, they have power to appoint a third person, two of whom agreeing, to settle the same. And that the ancient usage or quantity of water, which has been accustomed to pass the said trench, be the rule for them to aim at as near as they can, and the mode of settlement, and the quantity they agree upon, be hereafter the mode and quantity for ever. And that the said persons, within one year from the date, ascertain the same; and that they in­form the parties, who now agree to make such other writings, as may then appear more descriptive of the mode and quantity, and the same be then recorded, and that the regu­lating gate be made at the expense of the privilege." Now, the gravamen of the bill is, that this agreement was never carried in­to effect by any award whatsoever, though the plaintiffs have requested it; but that it was entered into to defraud the plaintiffs, by deluding them into the belief, that the parties intended to secure the ancient priv­ilege of the trench owners, and no more; whereas, under pretence of it, the trench owners have, within twenty years last past, used much more water.

We are then at liberty, as I think, to con­sider, that the agreement of 1796, in its terms and statements, is adopted by the plaintiffs. In this view it has a most im­portant bearing on the whole case, not only as a document of considerable antiquity, but as one intended to settle rights between par­ties, all having different interests. Unfor­tunately, no award was ever made by the arbitrators, they differing in opinion (the one being an owner on the trench and the other an owner on the lower dam) as to the height which the gate ought to be raised in a dry time. The difference seems to have been between one inch and three quarters, and two inches and a half, in the height.

The agreement itself, however, deserves great consideration. In the first place, it states the right of the trench owners in a very strong manner. It admits, and indeed, requires, the arbitrators to allow them “the quantity of water, which has been accus­tomed to pass to the trench;” and of course it fixes the right by the quantity flowing in the trench, and not by the quantity, which the mills then existing actually re­quired. In the next place, it contains no qualification or limitation of this right, by the slightest allusion to any pre-eminent right or priority of the lower dam mills, in case of a deficiency of water, or otherwise. Yet such an omission, if such a qualifica­tion or limitation as is now contended for by the plaintiffs existed, would be almost incredible. The presumption against its ex­istence, connected with the subsequent lapse of time, during which it has not been ad­mitted or acquiesced in, is of itself abun­dantly cogent and pressing. In the next place, it goes strongly to repel any inference, that the gate, erected in 1794 at the gate hole of the swift flume, was understood by the parties as an absolute measure of the quantity, or had a fixed position to limit the right of the trench proprietors. If it was a fixed gauge, there could have been no rea­son for an arbitration to ascertain it in 1796, much less would it have been recited in the agreement that it had “not been precisely ascertained.” The most that can be proper­ly said, is, that the parties placed it there for their convenience, but not as a posi­tive limitation of right, which neither party was at liberty to alter, if it affected his ac­knowledged rights injuriously. In the next place, the agreement ascertains, that the right of the trench owners was not, if I may so say, an expanding right, increasing with the uses to which they might choose to appropriate the water of the river; and that, therefore, they had no right to extend their prior appropriation of the water. Their use of the water since that period ought to be referred back to their rights as recognized in 1796, and if any additional quantity has been appropriated in the in­tervening time (which they deny), that ex­cess is to be deemed, not a matter of ad­verse claim, but of mere indulgence. In the next place, it is a fair inference from the agreement, that the water, which thus flow­ed into the trench of right, was ordinarily adequate to the use of all the mills then erected on it. At least, the existing state of things at that period may be taken to be rightful and adequate to the wants of the parties, or some exception would naturally have found its way into the agreement. And this inference is fortified by the depo­sition of Benjamin Cozzens, Jr. (one of the arbitrators) as well as by the subsequent user by the trench owners. The agreement of 1797, between the owners of the upper dam and the owners of the mills on the west side of the lower dam, for regulating the flumes of the upper dam, so as to secure a proper quantity of water to the lower dam, does not in the slightest degree impugn these conclusions. The trench owners were not parties to it; but it has an implied refer­ence to the agreement of 1796, and manifest­ly contemplated a ratification of its stipu­lations.

The memorandum, indorsed on the deed of Gideon Tenks to Eleazer Jenks in 1781, cannot be admitted as proof of the anterior pre-eminent right contended for by the plaintiffs. In the first place, however oper­ative between the parties, it could not bind the rights of the other trench owners, who were not parties to it. In the next place, it is not in its terms a recognition of any antecedent existing right, but a reservation of a future right. Its effect, in this view, is equivocal; for the reservation of a pre­eminent right may have been a part of the bargain between these particular parties. But what is still more material, the reserva­tion is not to the plaintiffs, or to the owners of the lower dam generally, or to the ripa­rian proprietors, but simply a reservation in favor of the forge mill, then existing on the west side of the river. Its bearing, there­fore, on the present case, must be very slight, if in truth it ought to have any bear­ing at all. The acts of particular owners respecting their own rights cannot be per­mitted to bind the rights of others, unless they are adopted and acquiesced in, with full knowledge by the other parties in in­terest. The agreement of 1796 repels any such inference. The fact of the actual flow and use of the water, for a considerable length of time, is proof of a general right; and no limitations are to be presumed, un­less such limitations have constantly accom­panied the use, and been acquiesced in by those, whose interests were adverse. For a period of forty or fifty years the water did flow into the trench without any known lim­itation upon it by grant or usage. The acts of interruption, since that time, were either such as referred to the removal of tempo­rary dams, intended to increase the supply, or were under circumstances so question­able, as to leave behind them no clear traces of any admission of right, or uniform acquiescence in them, as just exercises of superior adverse interests.

I pass over any particular examination of the testimony of witnesses on this point, because it is extremely difficult to reconcile it throughout; and it is, in many respects, so loose and uncertain, that the judgment cannot repose upon it with entire confidence. It fails of establishing any solid ground, on which to rest a decree in favour of the plaintiffs of a pre-eminent light to the use of the water.

The conclusion, to which my mind has ar­rived on this point, is that the owners on Sergeant’s trench have a right to the flow of the quantity of water which was accus­tomed to flow therein antecedent to 1796; that this right is general, and not qualified by any pre-eminent right in the plaintiffs or the other owners of the lower dam, either as riparian proprietors or otherwise, to the use of the water, in case of a deficiency; that if there be a deficiency, it must be borne by all parties, as a common loss, wherever it may fall, according to existing rights; that the trench proprietors have no right to appropriate more water than belonged to them in 1796, and ought to be restrained from any further appropriation; and that the plain­tiffs to this extent are entitled to have their general right established, and an injunction granted.

It is impracticable for the court to do more, in this posture of the case, than to re­fer it to a master to ascertain, as near as may be, and in conformity with the sug­gestions in the opinion of the court, the quantity to which the trench owners are entitled, and to report a suitable mode and arrangement permanently to regulate and adjust the flow of the water, so as to pre­serve the rights of all parties.

In respect to the question of damages for any excess of the use of the water by the trench owners, beyond their right, within six years next before the filing of the bill, I have not thought it my duty to go into a consideration of the evidence. It is a fit subject, either for reference to a master, or for an issue of quantum damnifieatus, if either party shall desire it.

The decree of the court is to be drawn up accordingly; and all further directions are reserved to the further hearing upon the master’s report, &c. Decree accordingly.

3.3.2.3 Coffin v. Left Hand Ditch Co. 3.3.2.3 Coffin v. Left Hand Ditch Co.

Coffin et al. v. The Left Hand Ditch Company.

Messrs. Carr and Kime, for appellants.

Mr. Bichard H. Whiteley, for appellee.

Helm, J.

Appellee, who was plaintiff below, claimed to be the owner of certain water by virtue of an appro­priation thereof from the south fork of the St. Vrain creek. It appears that such water, after its diversion, is carried by means of a ditch to the James creek, and thence along the bed of the same to Left Hand creek, where it is again diverted by lateral ditches and used to irrigate lands adjacent to the last named stream. Ap­pellants are the owners of lands lying on the margin and in the neighborhood of the St. Vrain below the mouth of said south fork thereof, and naturally irrigated therefrom.

In 1879 there was not a sufficient quantity of water in the St. Vrain to supply the ditch of appellee and also ir­rigate the said lands of appellant. A portion of appellee’s dam was torn out, and its diversion of water thereby seriously interfered with by appellants. The action is brought for damages arising from the trespass, and for injunctive relief to prevent repetitions thereof in the future.

The answer of appellants, who were defendants, below, is separated into six divisions.

First. A specific denial of all the material allegations of the complaint.

Second. Allegations concerning an agreement made at the date of the construction of appellee’s ditch; by this agreement the parties constructing such ditch were to refrain from the diversion of water therethrough when the quantity in the St. Vrain was only sufficient to sup­ply the settlers thereon.

Third, fourth, fifth and sixth are separate answers by individual defendants, setting up a right to the water di­verted, by virtue of ownership of lands along the St. Vrain, and in some instances also by appropriations of water therefrom. But it nowhere appears by sufficient averment that such appropriations of defendants making the same were actually made prior to the diversion of water through appellee’s ditch.

Demurrers were sustained to all of the above defenses or answers except the first, and exceptions to the rulings duly preserved; trial was had before a jury upon the issues made by the complaint and answer as it then re­mained, and verdict and judgment given for appellee. Such recovery was confined, however, to damages for in­jury to the dam alone, and did not extend to those, if any there were, resulting from the loss of water.

We do not think the court erred in its ruling upon the demurrers, and we believe the verdict and judgment sus­tained by the pleadings and evidence.

Were we to accept appellants’ views upon the subject of water rights in this state, it would yet be doubtful if we could justify the trepass. And if the agreement were actually made, as stated in the second defense, that fact would not excuse their act in forcibly destroying appellee’s dam without notice or warning. It is sufficient upon this subject for us to say, that even if such agreement were legal and binding, and included subsequent settlers on the St. Vrain, yet appellee was entitled to notice of the insuf­ficiency of water to supply the demands of appellants; it it might then, perhaps, have complied with the agree­ment without serious injury to its property.

But two important questions upon the subject of water rights are fairly presented by the record, and we cannot well avoid resting our decision upon them.

It is contended by counsel for appellants that the com­mon law principles of riparian proprietorship prevailed in Colorado until 1876, and that the doctrine of priority of right to water by priority of appropriation thereof was first recognized and adopted in the constitution. But we think the latter doctrine has existed from the date of the earliest appropriations of water within the boundaries of the state. The climate is dry, and the soil, when moist­ened only by the usual rainfall, is arid and unproductive; except in a few favored sections, artificial irrigation for agriculture is an absolute necessity. Water in the vari­ous streams thus acquires a value unknown in moister climates. Instead of being a mere incident to the soil, it rises, when appropriated, to the dignity of a distinct usufructuary estate, or right of property. It has always been the policy of the national, as well as the territorial and state governments, to encourage the diversion and use of water in this country for agriculture; and vast ex­penditures of time and money have been made in re­claiming and fertilizing by irrigation portions of our unproductive territory. Houses have been built, and permanent improvements made; the soil has been culti­vated, and thousands of acres have been rendered immensely valuable, with the understanding that appro­priations of water would be protected. Deny the doc­trine of priority or superiority of right by priority of appropriation, and a great part of the value of all this property is at once destroyed.

The right to water in this country, by priority of ap­propriation thereof, we think it is, and has always been, the duty of the national and state governments to protect. The right itself, and the obligation to protect it, existed prior to legislation on the subject of irrigation. It is en­titled to protection as well after patent to a third party of the land over which the natural stream flows, as when such land is a part of the public domain; and it is imma­terial whether or not it be mentioned in the patent and expressly excluded from the grant.

The act of congress protecting in patents such right in water appropriated, when recognized by local customs and laws, “was rather a voluntary recognition of a pre­existing right of possession, constituting a valid claim to its continued use, than the establishment of a new one.” Broder v. Notoma W. & M. Co. 11 Otto, 274.

We conclude, then, that the common law doctrine giv­ing the riparian owner a right to the flow of water in its natural channel upon and over his lands, even though he makes no beneficial use thereof, is inapplicable to Colo­rado. Imperative necessity, unknown to the countries which gave it birth, compels the recognition of another doctrine in conflict therewith. And we hold that, in the absence of express statutes to the contrary, the first ap­propriator of water from a natural stream for a beneficial purpose has, with the qualifications contained in the constitution, a prior right thereto, to the extent of such appropriation. See Schilling v. Rominger, 4 Col. 103.

The territorial legislature in 1864 expressly recognizes the doctrine. It says: “Nor shall the water of any stream be diverted from its original channel to the detri­ment of any miner, millmen or others along the line of said stream, who may have a priority of right, and there shall be at all times left sufficient water in said stream for the use of miners and agriculturists along said stream.” Session Laws of 1864, p. 68, § 32.

The priority of right mentioned in this section is ac­quired by priority of appropriation, and the provision declares that appropriations of water shall be subordinate to the use thereof by prior appropriators. This provision remained in force until the adoption of the constitution; it was repealed in 1868, but the repealing act re-enacted it verbatim.

But the rights of appellee were acquired, in the first instance, under the acts of 1861 and 1862, and counsel for appellants urge, with no little skill and plausibility, that these statutes are in conflict with our conclusion that priority of right is acquired by priority of appropria­tion. The only provision, however, which can be con­strued as referring to this subject is § 4 on page 68, Session Laws of 1861. This section provides for the appointment of commissioners, in times of scarcity, to apportion the stream “in a just and equitable propor­tion,” to the best interests of all parties, “with a due regard to the legal rights of all.” What is meant by the concluding phrases of the foregoing statute? What are the legal rights for which the commissioners are enjoined to have a “due regard?” Why this additional limitation upon the powers of such commissioners?

It seems to us a reasonable inference that these phrases had reference to the rights acquired by priority of appro­priation. This view is sustained by the universal respect shown at the time said statute was adopted, and subse­quently by each person, for the prior appropriations of others, and the corresponding customs existing among settlers with reference thereto. This construction does not, in our judgment, detract from the force or effect of the statute. It was the duty of the commissioners under it to guard against extravagance and waste, and to so divide and distribute the water as most economically to supply all of the earlier appropriately thereof according to their respective appropriations and necessities, to the extent of the amount remaining in the stream.

It appears from the record that the patent under which appellant George W. Coffin holds title was issued prior to the act of congress of 1866, hereinbefore mentioned. That it contained no reservation or exception of vested water rights, and conveyed to Coffin through his grantor the absolute title in fee simple to his land, together with all incidents and appurtenances thereunto belonging; and it is claimed that therefore the doctrine of priority of right by appropriation cannot, at least, apply to him. We have already declared that water appropriated and diverted for a beneficial purpose is, in this country, not necessarily an appurtenance to the soil through which the stream supplying the same naturally flows. If ap­propriated by one prior to the patenting of such soil by another, it is a vested right entitled to protection, though not mentioned in the patent. But we are relieved from any extended consideration of this subject by the decision in Broder v. Notoma W. & M. Co., supra.

It is urged, however, that even if the doctrine of pri­ority or superiority of right by priority of appropriation be conceded, appellee in this case is not benefited thereby. Appellants claim that they have a better right to the water because their lands lie along the margin and in the neighborhood of the St. Vrain. They assert that, as against them, appellee’s diversion of said water to irrigate lands adjacent to Left Hand creek, though prior in time, is unlawful.

In the absence of legislation to the contrary, we think that the right to water acquired by priority of appropria­tion thereof is not in any way dependent upon the locus of its application to the beneficial use designed. And the disastrous consequences of our adoption of the rule con­tended for, forbid our giving such a construction to the statutes as will concede the same, if they will properly bear a more reasonable and equitable one.

The doctrine of priority of right by priority of appro­priation for agriculture is evoked, as we have seen, by the imperative necessity for artificial irrigation of the soil. And it would be an ungenerous and inequitable rule that would deprive one of its benefit simply because he has, by large expenditure of time and money, carried the water from one stream over an intervening watershed and cul­tivated land in the valley of another. It might be utterly impossible, owing to the topography of the country, to get water upon his farm from the adjacent stream; or if possible, it might be impracticable on account of the dis­tance from the point where the diversion must take place and the attendant expense; or the quantity of water in such stream might be entirely insufficient to supply his wants. It sometimes happens that the most fertile soil is found along the margin or in the neighborhood of the small rivulet, and sandy and barren land beside the larger stream. To apply the rule contended for would prevent the useful and profitable cultivation of the productive soil, and sanction the waste of water upon the more ster­ile lands. It would have enabled a party to locate upon a stream in 1875, and destroy the value of thousands of acres, and the improvements thereon, in adjoining val­leys, possessed and cultivated for the preceding decade. Under the principle contended for, a party owning land ten miles from the stream, but in the valley thereof, might deprive a prior appropriator of the water diverted there­from whose lands are within a thousand yards, but just beyond an intervening divide.

We cannot believe that any legislative body within the territory or state of Colorado ever intended these conse­quences to flow from a statute enacted. Yet two sections are relied upon by counsel as practically producing them. These sections are as follows:

“All persons who claim, own or hold a possessory right or title to any land or parcel of land within the boundary of Colorado territory, * * * when those claims are on the bank, margin or neighborhood of any stream of water, creek or river, shall be entitled to the use of the water of said stream, creek or river for the purposes of irrigation, and making said claims available to the full extent of the soil, for agricultural purposes.” Session Laws 1861, p. 67, § 1.
“Nor shall the water of any stream be diverted from its original channel to the detriment of any miner, millmen or others along the line of said stream, and there shall be at all times left sufficient water in said stream for the use of miners and farmers along said stream.” Latter part of § 13, p. 48, Session Laws 1863.

The two statutory provisions above quoted must, for the purpose of this discussion, be construed together. The phrase “along said stream,” in the latter, is equally comprehensive, as to the extent of territory, with the ex­pression “on the bank, margin or neighborhood,” used in the former, and both include all lands in the immediate valley of the stream. The latter provision sanctions the diversion of water from one stream to irrigate lands ad­jacent to another, provided such diversion is not to the “detriment” of parties along the line of the stream from which the water is taken. If there is any conflict be­tween the statutes in this respect, the latter, of course, must prevail. We think that the “use” and “detri­ment” spoken of are a use existing at the time of the diversion, and a detriment immediately resulting there­from. We do not believe that the legislature intended to prohibit the diversion of water to the “detriment” of parties who might at some future period conclude to settle upon the stream; nor do we think that they were legislating with a view to preserving in such stream suffi­cient water for the “use” of settlers who might never come, and consequently never have use therefor.

But “detriment” at the time of diversion could only exist where the water diverted had been previously ap­propriated or used; if there had been no previous appro­priation or use thereof, there could be no present injury or “detriment.”

Our conclusion above as to the intent of the legislature is supported by the fact that the succeeding assembly, in 1864, hastened to insert into the latter statute, without other change or amendment, the clause, “who have a priority of right,” in connection with the idea of “detri­ment” to adjacent owners. This amendment of the statute was simply the acknowledgment by the legisla­ture of a doctrine already existing, under which rights had accrued that were entitled to protection. In the language of Mr. Justice Miller, above quoted, upon a different branch of the same subject, it “was rather a voluntary recognition of a pre-existing right constituting a valid claim, than the creation of a new one.”

Error is assigned upon alleged defects in the proof of appellee’s incorporation.

But this is an action of trespass; the defendants below were, according to the verdict of the jury, and according to the views herein expressed, wrong-doers; and, con­sidering the nature of the action, we think the proof of incorporation sufficient.

The judgment of the court below will be affirmed.

Affirmed.

3.3.2.4 Fugitive Resources: Notes + Questions 1 3.3.2.4 Fugitive Resources: Notes + Questions 1

Notes and Questions 

1. Different Strokes for Different Folks. Why is the rule for control and use of surface waters different in the Eastern United States than it is in the West? Why is it different for water in New England than it is for wild animals in (old) England? Is the “priority of appropriation” rule in Colorado the same as the “free taking” rule for game in the early American frontier? If not, how and why does it differ? 

One of the important skills of lawyers (and legal scholars) is to identify distinctions among seemingly analogous fact patterns that could account for courts’ selection of the rules they apply to those facts. So: can we identify some distinctions in the facts of these two cases that might account for the difference between, say, the eastern (riparian) rule and the western (priority of appropriation) rule for water? (Did Justice Helm identify any such distinctions in Coffin?) 

We might examine at least three different grounds for distinguishing these types of cases from one another. First, the characteristics of the resource itself may be different. That may be a relevant basis for distinguishing wild animals from water; as we will see it may also be a basis for distinguishing both of those resources from oil and gas. Second, the characteristics of the society in which the resource is being exploited may be different. As we have already noted, the interior of the American continent in the 18th century was a very different place than the English countryside—in terms of its population density and in terms of the level of development and exploitation of existing natural resources. And as the Coffin court noted, the quality and distribution of arable soil in the mountain west makes irrigation an “imperative necessity” to agriculture in a way “unknown to” the riparian east. Third, the particular uses of the resource may differ from one social context to another. For example, in New England, where surface water is plentiful, streams were mainly used non-consumptively to power industrial plants in the 19th century; in Colorado, where water is scarce, streams were used primarily for consumptive purposes—mining, farming, and drinking. See Carol M. Rose, Energy And Efficiency in the Realignment of Common-Law Water Rights, 19 J. LEG. STUD. 261, 290-93 (1990). Any of these types of distinctions could justify a change in legal rules from one case to another. Which—if any—do you think best explain the difference between Tyler and Coffin

 

2. Stock Resources. Tyler and Coffin deal with allocation of the right to a share of the flow of a natural watercourse. But much water use depends not on surface waters, but on groundwater, extracted by means of wells and pumps. Such groundwater can behave more like a stock resource than a flow resource; excessive extraction by any one claimant today threatens the availability of the resource for all claimants in the future. Indeed, extraction of groundwater—and even collection of precipitation—can alter the flows of surface channels, threatening the rights of remote riparians or prior appropriators. For this reason, some states—particularly in the more arid Western United States—have enacted comprehensive statutory codes and administrative regulations allocating water rights. California’s system is among the most complex, layering early common-law riparian rights with later common-law prior appropriation rights and a subsequent statutory code administered by a powerful administrative agency with significant discretion to alter and limit water uses to respond to changing conditions. The state’s regulatory reach is profound; in May of 2015 the Water Board responded to serious drought conditions by adopting emergency regulations requiring residents to refrain from most outdoor uses of water and requiring businesses to reduce their potable water usage by 25%, all on pain of a fine of $500 per day. State Water Resources Control Bd. Res. No. 2015-0032: To Adopt an Emergency Regulation for Statewide Water Conservation (May 5, 2015), available at http://www.waterboards.ca.gov/waterrights/water_issues/programs/
drought/docs/emergency_regulations/rs2015_0032_with_adopted_regs.pdf

 

3. Non-Renewable Fugitive Resources. For our next category of fugitive resource—oil and gas—stock depletion is the standard state of affairs, exacerbated by the fact that oil stocks do not replenish themselves the way water stocks do. Consider the following summary of how the law responded to demand for this scarce resource when it suddenly became economically important.

3.3.2.5 Edward Greer, The Ownership of Petroleum and Natural Gas In Place  3.3.2.5 Edward Greer, The Ownership of Petroleum and Natural Gas In Place 

Edward Greer, The Ownership of Petroleum and Natural Gas In Place 

1 TEX. L. REV. 162 (1923) 

It has always been the boast of common-law lawyers that the system was so flexible and adaptable to new conditions that it afforded an adequate remedy in any case or state of facts, however novel and complicated. This claim has been put to a severe test in determining the rights of the owner of land to petroleum oil and natural gas underlying the same. At the first the courts established the obvious proposition that these substances are minerals, since the term “minerals” embraces all inorganic substances in or under the surface of the earth; and hence it was argued that any such component parts of the surface, or underlying strata, were parts of the land; and that any disposition thereof would be a disposition of a part of the land. … Having so determined, it was an easy conclusion, if no consideration was given to the peculiar attributes of these substances, that they belonged absolutely to the owner of the land, since the land owner’s title extended ad caelum ad inferno. 

…This line of reasoning, however, was not allowed to go unchallenged and among the early decisions are some which question it and seek to point out its fallacy, and, indeed, hold that, notwithstanding these substances are minerals, owing to their

peculiar nature they are incapable of ownership in situ. It was shown in these early cases that there was a very substantial and radical difference between oil and gas and solid minerals, in that the former had, or were assumed to have, the power of moving from place to place—of migrating, so to speak, from one tract of land to another, and that by such movement the title of one land owner, if he had any, was lost without his consent and against his will. Now, since such condition was entirely inconsistent with the legal concept of true or absolute ownership, the question of such ownership was raised and has been debated by the courts ever since with somewhat varying and conflicting conclusions. The title of the land owner was compared, by those courts taking the view that oil and gas are migratory, with his title to wild animals (ferae naturae) that came on his land; and while the analogy was admitted to be incomplete it was insisted that the land owner’s title was much more like his title to wild animals than like his title to solid minerals. Likewise, the earliest cases held that the title of the land owner to oil and gas was entirely similar to his title to running or percolating water under the surface of his land; that the extent of the right in either case, percolating water or oil and gas, was the exclusive right to capture, to take and to use such minerals while on or under his land. The right as to wild animals was known at common law as ratione soli; and the right to take water practically the same.**

 This was declared to be the extent of the right possessed as to oil and gas. Of course such right falls far short of the rights of an owner, or ownership, and under this view no conveyance transferring title or reserving title could be made. Likewise, it was pointed out, that from the conclusion that oil and gas are minerals, it does not follow that the land owner owns them, because percolating underground water is conceded on all hands to be a mineral, and yet it is universally held that the land owner does not own such water, but only has the exclusive right on his land to capture and take possession of such water and thus acquire title thereto; he cannot convey it or reserve it distinct from the surface, because he does not own it. 

Again, the doctrine of ad caelum ad inferno does not give to a riparian owner, title to water passing over one’s land in a stream, notwithstanding he owns the fee to the center of the stream; nor to shell fish, mollusks or oysters not planted by the land owner. 

These considerations were sufficient in the minds of many of the courts, and perhaps a majority of them, to upset the whole theory of absolute ownership of petroleum oil and natural gas in place. Just here it may be well to say that perhaps the courts went too far in assuming that these substances possessed the power of self-propulsion and movement in a state of nature. Such fact has not been and never could be proven; but the general belief among practical operators and geologists now is that these substances, generally speaking, have been confined for ages in pools, porous rocks, and sands where we now find them, and would so remain for ages to come if not allowed to escape or move by an earthquake breaking up the stratum, or some similar occurrence, or by the act of man in drilling into the pool, sand or rock. …[I]t is conceded on all hands by practical operators and geologists that oil and gas will move to an opening into the pool or stratum and through such opening—the substances being always found under pressure; and hence by drilling a well on his own land, one can get possession of oil or gas which was under his neighbor’s land, and thereby secure the title to the same. When the natural pressure is not sufficient, the oil and gas can be drawn by pumps from under another’s land, and thus its situs changed from one tract to another; also by exploding dynamite in wells, the process being known as “shooting the well.” 

Assuming, then, a condition which is admitted to exist on all hands, and which is demonstrably true, to wit, that the oil and gas underlying A’s land may be withdrawn therefrom by the drilling of a well on B’s land, and that B acquires full and complete title) to such oil or gas when he brings it to the surface through a well drilled on his land, the question is, what is the character of title which A had to the oil before it was withdrawn? And, if it is contended that he had full and complete ownership, how can his title be lost in harmony with recognized legal principles, without his consent and against his will? 

We cannot conclude that the land owner has not title to oil and gas in situ because he has not such title to wild animals, or to percolating underground water, because it must be conceded that there are substantial differences between the land owner’s dominion over wild animals, which come at will on his land and leave when they please, and oil and gas in place, and percolating water. The title to wild animals, before capture, is in the public or state at large, subject to be vested in the land owner on capture or reduction to possession; whereas the title to oil and gas is not in the public but is, in the view of some courts, in the land owners in common whose lands cover or overlie the pool or producing rock or sand containing the oil, subject to being individualized or perfected by reduction to actual possession by each.… There is another difference between oil and gas in place and percolating water, and that is in the case of water the supply is replenished by surface rains, the water finding its way to the subterranean sands and thus there is more or less a continuation of the supply and not a permanent, complete exhaustion by the extraction of the water. This is also true of wild animals, of course, since after some are captured others come. So far as known, this is not true of oil or gas. There is no steady, constant supply, and when the oil in the sand, rock or pool, as the case may be, is once exhausted, it will probably never be replaced.… 

The differences, therefore, between the dominion of the surface owner over wild animals, percolating underground water and oil and gas, though important and considerable, do not seem to be sufficient to put oil and gas in a class entirely by themselves, and to make different rules of law applicable to the ownership of such substances from those applicable to wild animals and percolating water. Indeed, the differences between the dominion of the surface owner over wild animals which come on his land, and underground percolating water, are greater than the differences between such dominion over water on the one hand and oil and gas on the other. As before stated, the title to wild animals is in the state or the public at large before capture; whereas the title to percolating underground water is never in the state or public at large. The one common attribute of all three of these classes is that title may be acquired lawfully by a person other than the owner of the land where such substances for the time are situated or abide, by inducing or causing a movement thereof by an adjacent owner to his land. Also the rule that the land owner has the exclusive right to take such substances, reduce them to possession and thereby acquire title while they are on his land, is applicable to all three; and any one going on the land of another and reducing any of these things to possession there, is a trespasser and he acquires no title to them; but the reduction to possession by such trespasser perfects the title in the land owner. 

If A goes on to B’s land and captures or kills wild animals or birds, such birds or animals belong to B. If he goes on B’s land and drills a well and brings water to the surface, such water belongs to B. If he goes on B’s land, drills a well and brings oil or gas to the surface, such oil or gas belongs to B; but if A entices wild animals away from B’s land, in any way not constituting a trespass, on to his own land and there captures them, they belong to A. So if he excavates a reservoir on his land and thereby entraps and causes a flow of underground water from B’s land to his own, it belongs to him; also if he drills an oil or gas well on his land and oil or gas which was under B’s land comes up through his well, he has full title thereto. Substantially, therefore, it would appear that the rules of law governing the title as to wild animals, percolating underground water and oil and gas, should be the same, notwithstanding the different attributes of these things above pointed out. 

The true and absolute test of the ownership of a thing on all sound legal principles, must be whether the party claiming such ownership has such right or title to the thing that no one can lawfully take it from him, without his consent. If this rule is made the test, then unquestionably a land owner has no ownership of the oil and gas underlying his land. It is demonstrable, as above shown, that the land owner loses all semblance of the title to oil and gas which were under his land if they come to the surface through a well drilled by his neighbor on his land. He can not enjoin or stop the drilling of such well, no matter how evident it is that some part of the production of that well is from oil and gas underlying his land, nor can he sustain any claim for damages for such act. 

** [Eds.—Is this right, in light of the water rights cases you just read?]  

3.3.2.6 Fugitive Resource: Notes + Questions 2 3.3.2.6 Fugitive Resource: Notes + Questions 2

 

1. I Drink Your Milkshake.* Imagine A and B are neighboring landowners in an oil-rich region. A drills an oil well at an angle, such that the wellhead is on A’s land, but the bottom of the well, from which the pipe draws oil, is under B’s land. B sues A to enjoin the continued operation of the well and recover the value of the oil already extracted. What result and why? See 1 SUMMERS OIL AND GAS § 2:3 (3d ed.) (“[I]f a well deviates from the vertical and produces oil or gas from under the surface of another landowner, that is a trespass for which the adjacent owner is entitled to damages, an accounting and injunction.”). Why might it be acceptable to use a well on your land to draw the oil from under your neighbor’s land, but not to drill the bottom of your well under the surface owned by your neighbor to extract the very same oil?

*THERE WILL BE BLOOD (Paramount Vantage/Miramax Films 2007) 

2. Subject Matter Redux. Mr. Greer’s primary concern appears to be whether oil and gas in place (i.e., prior to extraction) are “property.” Given our discussion in the previous chapter on the Subject Matter of Property, what do you think? Has he convinced you that, until extracted, oil and gas are not the “property” of the owner of the land in which they are embedded? 

 

3. Incentives Again. Given that any landowner can lawfully extract all the oil and gas under not only her land, but potentially under the land of any neighboring landowners who occupy the surface over the same geologic formation, what incentive does each landowner over a large formation have with respect to that underlying oil and gas? In early-20th-century California, we found out: 

Signal Hill, California, c. 1923. Source: U.S. Library of Congress PPOC, http://www.loc.gov/pictures/resource/pan.6a17401/ 

This is an image of Signal Hill, California, one of the richest oil fields ever discovered, around the peak of its productivity in 1923. Why do you think there are so many oil derricks in such close proximity to each other? Based on Mr. Greer’s article, do you think this quantity and density of wells are necessary to extract the oil underground? If not, isn’t this duplication of investment and effort wasteful? Couldn’t the oil be just as easily extracted with one (or at least far fewer) wells? If so, why did the people of Signal Hill build so many? Could the law of fugitive resources be playing a role? 

 

4. The Tragedy of the Commons. The race to drill in Signal Hill evokes one of the key set-pieces invoked by economists to justify private property rights: the tragedy of the commons: 

“Picture a pasture open to all. It is to be expected that each herdsman will try to keep as many cattle as possible on the commons. … As a rational being, each herdsman seeks to maximize his gain. Explicitly or implicitly, more or less consciously, he asks, "What is the utility to me of adding one more animal to my herd?" …[T]he herdsman receives all the proceeds from the sale of the additional animal…. Since, however, the effects of overgrazing are shared by all the herdsmen, … any particular decision-making herdsman [bears] only a fraction of [the negative effects of his additional animal].… [T]he rational herdsman concludes that the only sensible course for him to pursue is to add another animal to his herd. And another; and another.... But this is the conclusion reached by each and every rational herdsman sharing a commons. Therein is the tragedy. Each man is locked into a system that compels him to increase his herd without limit—in a world that is limited.” 

Garrett Hardin, The Tragedy of the Commons, 162 SCIENCE 1243 (1968). 

The negative effects of each additional animal, which are suffered by all the common owners collectively, are what economists refer to as an externality. Some of the things we do with the resources we control can make others better or worse off. If I divert a stream to my mine, your crops may wither; if I plant a rosebush in my garden, you may enjoy the smell of my flowers on your way to work each day. The key point to keep in mind about these externalities caused by my conduct is that I care about them less than you do. I am better off if the stream I diverted makes my mine more productive; the fact that the diversion causes your crops to die doesn’t affect me directly, or perhaps at all. 

Externalities can lead to the kind of misallocation of investment and effort we see in Signal Hill or the overcrowded pasture: in deciding whether to engage in an activity, I am unlikely to take sufficient account of the effects of my activity on others. This, in turn, can lead to bad aggregate outcomes: I may impose large costs on all my neighbors by engaging in an activity that is of only moderate benefit to me, or may refrain from an activity that would confer large benefits on many people at only moderate cost to myself. The trouble is that I have no incentive to weigh the cost of your dying crops, your starving animals, or your dried-up well. 

The economist’s solution to this problem is to internalize the externalities that result from resource use. That is, to find some way to make the effects of a person’s actions hit that person in the pocketbook, for good or for ill. One way to internalize the externalities that generate the tragedy of the commons is to convert the commons to private ownership. Knowing that pasturing too many animals today would leave nothing for his animals to eat tomorrow, a rational owner of the pasture would calibrate the number of animals he keeps to maximize their number today while ensuring a stable supply of fodder into the future. Indeed, Professor Harold Demsetz famously argued that property rights arise precisely when the benefits of exploiting a scarce resource have increased in value (due to increasing demand or decreasing supply) to the point where the right to control that value would be a sufficient incentive to undertake the costs of responsibly managing the resource (i.e., where an owner would be willing to internalize the externalities of using the resource). See Harold Demsetz, Toward a Theory of Property Rights, 57 AM. ECON. REV. 347 (1967). 

So goes the theory, at any rate. But this theory leaves open a host of practical questions, primarily about allocation of these theoretically attractive private property rights. Does it make the most sense to have one owner of the whole pasture? Should the pasture be divided into parcels, and if so, how many and how should they be assigned? What if dividing the pasture into smaller parcels leaves each owner with insufficient space to pasture animals? If there is just one owner, how are we supposed to choose the lucky winner? And once the winner is chosen, what is everyone else supposed to do? Finally, who has the authority to decide all these questions? 

 

5. The Comedy of the Commons. Beyond these practical questions of allocation, we might question whether the absence of property rights over a scarce resource necessarily results in tragedy. Some resources, in particular societies, under particular conditions, may have characteristics of a “comic” commons—characteristics that militate against private property rights. See generally, e.g., Carol Rose, The Comedy of the Commons: Commerce, Custom, and Inherently Public Property, 53 U. CHI. L. REV. 711 (1986). Some of the most groundbreaking work in economics in the past half-century—such as the Nobel Prize-winning work of Dr. Elinor Ostrom—has gone towards showing how commons-based resource management can actually work surprisingly well in contexts as diverse as Swiss mountain farms, Filipino irrigation canals, and Turkish fisheries. See generally ELINOR OSTROM, GOVERNING THE COMMONS (1990). 

Are the doctrines we have studied regarding allocation of fugitive resources property-based or commons-based? Take, for example, the riparian doctrine of reasonable use: can riparian owners take as much of the waters flowing past their land as they want, whenever they wish? Is there any middle ground between the “sole and despotic dominion” of Blackstone’s private property and the tragic spiraling waste of Hardin’s common pasture? If so, how does the law decide who gets what? 

What about the prior appropriation rule governing water rights in western states? Is it an instance of law stepping in to prevent a tragedy of the commons? That is certainly one conventional interpretation of the rule. But Professor David Schorr recently argued that early settlers in Colorado had informally worked out relatively egalitarian water allocation arrangements, which the Coffin court was merely protecting against destabilizing intrusions by new arrivals and powerful corporate interests. See generally DAVID SCHORR, THE COLORADO DOCTRINE (2012). Which makes more sense to you: that the Coffin court was setting economic policy to avoid overuse of scarce water, or that it was protecting the past investments and future expectations of the state’s most established citizens? If you were a newly arrived farmer in Colorado when Coffin was announced, how would you react to the opinion?