Property Law and Real Estate Commons^™

Bosch And The Binding Effect Of State Court Adjudications Upon Subsequent Federal Tax Litigation, William E. Martin

Vanderbilt Law Review

One of the unique facets of American federalism involves the interaction of state court decrees which determine or characterize an individual's property rights with subsequent federal court litigation which imposes the federal tax burden upon those rights. While Congress determines what relationships are to be taxed, state law creates and state court adjudications measure these relationships.' In 1934 the Supreme Court formulated the standard that the state court decision was to be followed by a federal tax court in the absence of collusion, since the decree established the state "law" in regard to the relevant property. However, the definitional and …

Conflict Of Laws -- Constitutionality Of State Statutes Governing Ability Of Nonresident Aliens To Receive Property Under American Wills: Zschernig V. Miller, Richard N. Hale

Vanderbilt Law Review

An excellent illustration of the vertical conflict of laws problem involves the ability of nonresident aliens to receive property under American wills. Traditionally, under the American federal system,the acquisition and transmission of property located within a state has been controlled by state law. Yet article I, section 10 of the United States Constitution imposes strict limitations on a state's power to deal with matters having a bearing on international relations, such matters being within the ambit of the national government. The supremacy of the national government in the general field of foreign affairs has been given continuous recognition by the …

Corporate Securities As "Business Property", Thomas G. Bost

Vanderbilt Law Review

Inadequacies of the statutory definition of "capital asset" have led the courts to develop the concept of "business property," which serves to distinguish everyday business activities from investment activities.This concept is now being applied by courts in a wide variety of factual situations involving corporate securities. However, unless objective, easily ascertainable limits to the "business property" concept are found, confusion and inconsistency may mark the development of future case law. The rules developed by the American Law Institute's Discussion Draft Study of Definitional Problems in Capital Gains Taxation appear to provide these objective limits. Because they are consistent with the …

Trespassing Children: A Study In Expanding Liability, R. Neal Batson

Vanderbilt Law Review

When confronted with a case involving a child plaintiff, attorneys and the courts should recognize that the doctrine of attractive nuisance is only one of several theories on which the plaintiff may proceed against a landowner. The status of a plaintiff should first be determined. If the child is a trespasser, then either the constant trespasser theory, the known trespasser theory, or the doctrine of attractive nuisance may be applicable. It is possible, however, that the court may reject any one or all of these theories and decide the particular case under the general negligence principles of foreseeability of harm …

Real Property Depreciation Recapture: An Ineffectual Reform Of The Tax Laws, Charles S. Franklin

Vanderbilt Law Review

This note stems from a belief that an asymmetrical body of tax laws is a challenge to the legal profession which, by training, experience and tradition, is well situated to spur and guide reform. It is my intention to outline the story of but one section of the Internal Revenue Code: why it was proposed, what it sought to do, how it underwent modification by an unsympathetic congressional committee, and how it was finally enacted as a superficial compromise with the underlying asymmetry of our tax laws. In short, what follows is an appended bar in the organ theme entitled …

Right Of First Refusal--Homogeniety In The Condominium, Ira E. Parker, Iii

Vanderbilt Law Review

The condominium, a newly popular but relatively old' concept in real property law, is defined basically as an apartment project involving individual fee ownership of a family unit in a multi-unit structure or structures. To complete the ownership picture, the individual fee owners are also tenants in common, with undivided interests, in the land on which the structure is built, and in other parts of the structure which are not part of an individual unit. Due to the anticipated popularity of this unconventional real estate ownership,state legislation has blossomed in the past four years, and today, all but a few …

Condominium--Tax Aspects Of Ownership, Richard R. Mcdowell

Vanderbilt Law Review

The ancient concept of condominium ownership has been revived in this country as an answer to the increasing demand for adequate urban housing. The advantages of individual home ownership have had to be subordinated by many families in favor of the convenience of apartment rental. A partial answer to this problem has been found in the creation of cooperative apartments, but this device still leaves much to be desired.' It was not until Puerto Rico achieved its initial success with condominiums that the advantages of this form of home ownership fully came to the attention of this country. To encourage …

Condominium: A Reconciliation Of Competing Interests?, James C. Clark

Vanderbilt Law Review

This note will first examine some of the operative provisions of the condominium statutes. Particular emphasis will be placed upon those provisions which are basic to the creation, existence, and dissolution of this unique form of property ownership. The FHA Model Statute For Creation of Apartment Ownership will be the principal vehicle of analysis, for it is the basis of many of the state condominium statutes. State provisions which differ from the Model Act will then be examined to discover the best statutory answer to the needs of condominium housing. Finally, attention will be focused on the tax implications of …

Domestic Relations -- 1964 Tennessee Survey, T. A. Smedley

Vanderbilt Law Review

Though most of the family law decisions of the supreme court and appellate courts of Tennessee reported during 1964 were of the common garden variety, four cases presented issues of notable significance, and in three of them the supreme court seems to have decided questions of first impression in this jurisdiction. As usual, the most common cause of controversy lay in matters of alimony, child support, and property settlements; but there were also decisions regarding grounds for divorce, child custody, the wife's right to damages for loss of the husband's consortium, and the parents' liability for a child's tort. Three …

Restitution -- 1964 Tennessee Survey, John W. Wade

Vanderbilt Law Review

The most significant case during the Survey period is Gulf Oil Corp.v. Forcum. The State of Tennessee condemned for highway purposes certain property including the location of a filling station. Defendant was lessee of this property and had installed its own tanks, pumps and other equipment. Plaintiff had the contract to construct the highway and was entitled under this contract to salvage condemned property. Refusing to allow defendant's agent to remove the service station equipment, plaintiff removed the equipment itself at considerable expense. When the condemnation proceeding was completed, defendant was awarded 2,000 dollars for the value of its leasehold, …

Decedents' Estates, Trusts And Future Interest -- 1964 Tennessee Survey, Herman L. Trautman

Vanderbilt Law Review

Validity of Instrument Which Only Appoints Fiduciary--Is an instrument which makes no testamentary gift, but only designates or appoints the personal representative to administer the estate and provides certain special powers of fiduciary administration entitled to probate as a valid will? While it has been said that there need be no dispositive gift of property to entitle a testamentary writing to probate as a will,' there seems to have been no definite court decision in Tennessee so holding until the recent case of Delaney v. First Peoples Bank of Johnson City. In that case a writing properly executed with the …

Reflections Upon Hegel's Concept Of Property, Contract, Punishment, And Constitutional Law, Morris D. Forkosch

Vanderbilt Law Review

Codification and re-codification in federal and state jurisdictions has proceeded in a geometrical progression these past decades. To what extent is the old law yielding or, au contraire, to what extent is the ancient law reappearing? For example, are Plato's views on crime and punishment being revived, continued, or changed?' Or,to what extent are Hegel's views in a certain few legal areas of present interest and value? As we shall see, an understanding of Hegel's juris-prudential views, as related to specific topics, is a present-day pragmatic necessity. We propose to seek these views, albeit briefly, in the fields of property, …

A Tale Of Two Cases, William H. Agnor

Vanderbilt Law Review

Professor Agnor here traces the development of what he suggests is a bad rule of law which originated in a poor decision of a jurisdiction highly respected for its decisions on the law of future interests. The author's demonstration of how the case has been blindly followed by both bench and bar underscores his message that members of the legal profession must not rely on encyclopedic statements of the law without an examination into the policies and problems involved.

Raising The Perpetuities Question: Conception, Adoption, "Wait And See," And Cy Pres, Robert J. Lynn

Vanderbilt Law Review

Applying the orthodox, the "wait and see," or the cy pres version of the Rule Against Perpetuities presupposes analyzing the limitations in the dispositive instrument as of the time of their creation to determine whether any gifts are future, whether any future gifts are remainders or executory interests, and whether any remainders or executory interests are contingent. If a contingent future interest might vest, if it vests at all, at a remote time, it is bad ab initio under the orthodox form of the Rule. That being so, the perpetuities question may properly be raised at the time the contingent …

Removal Of Future Interest Encumbrances--Sale Of The Fee Simple Estate, Candler S. Rogers

Vanderbilt Law Review

The removal of future interest encumbrances on realty may in proper cases relieve hardship of private parties and be of benefit to the community by rendering the land marketable and productive. The author here examines the scope of equity jurisdiction in these cases and the applicable statutes. The author concludes with proposals to improve the statutory treatment of the problem and suggests that equity already has the power to provide the relief contained in his statutory proposals.

Introductory Essay On The Literature Of Future Interests, Roy M. Mersky

Vanderbilt Law Review

The general practice of law involves, among other things, the drafting of wills and trust agreements and the litigation of cases arising out of such instruments as drawn by other lawyers. Successful practice in this field is predicated upon adequate training in the law of future interests. This difficult and technical branch of law contains rules and procedures which are understandable only in the light of their historical background

The Art Of Interpretation In Future Interest Cases, Daniel M. Schuyler

Vanderbilt Law Review

Man's quest for an absolute, for a definition of "good," for the meaning of "justice," carries us back to the beginnings of philosophy. And although these concepts are as elusive as the Questing Beast pursued by King Pellinore in T. H. White's delightful book, The Once and Future King, the history of mankind indicates that the curiosity of thoughtful persons is insatiable and that the search will not end. It continues daily before our eyes-in mathematics, astronomy, medicine, psychology, sociology, economics, philosophy, and other disciplines not the least of which is law. Even Holmes, the supposed skeptic, who rejected absolutes' …

Perpetuities: Cy Pres On The March, W. Barton Leach

Vanderbilt Law Review

The standard doctrine has been that where an interest may vest too remotely the entire interest is stricken down; and this destructiveness is multiplied by the all-or-nothing rule of Leake v. Robinson which declares that the invalidity of a gift to any member of a class invalidates the gifts of all other members. It is the thesis of this paper that the penalty for violation of the Rule--a penalty inflicted, not on the violator, but on his or her intended beneficiaries, usually minors or unborns--should be, not the invalidation of the future interest, but rather a tailoring of the interest …

Commercial Transactions And Personal Property--1963 Tennessee Survey, John A. Spanogle, Jr.

Vanderbilt Law Review

Obviously, the biggest event in the Tennessee law of commercial transactions this year was the enactment of the Uniform Commercial Code [hereinafter referred to as the U.C.C.]. That statute became effective in this state on July 1, 1964. Its effect on the prior Tennessee law is discussed in great detail elsewhere in this issue,' and need not be re-examined here. It should also be pointed out that the enactment of the U.C.C.required some modifications in the criminal statutes relating to security agreements. In particular, executing a second security agreement covering personalty, without disclosing a prior security agreement covering the same …

Case Comments -- Federal Estate Tax -- Losses Arising From Sale Of Property To A Corporation By An Estate Not Disallowed By Section 267, Law Review Staff

Vanderbilt Law Review

Decedent died testate in 1955, leaving 2,500 shares of stock of the Leader Building Company in her gross estate. Her three sisters were the legatees in equal shares of the estate, and they were also beneficiaries of separate trusts which owned the remaining 7,500 shares of the company.' In order to raise enough funds to pay the Federal Estate Tax, the estate, petitioner herein, had to sell some of the stock. Accordingly, the corporation redeemed about half of the shares held by the estate, which thereby sustained a net capital loss. Petitioner sought a deduction of this loss, in order …

Restitution - 1963 Tennessee Survey, J. Brad Reed

Vanderbilt Law Review

Constructive trusts are related to the field of trusts in somewhat the same way that quasi-contracts are today related to the field of contracts-in misnomer only. A judicial declaration of a constructive trust means simply that the holder of legal title to the property affected, must convey it to the person for whose benefit the constructive trust is declared.' The primary efficacy of this equitable remedy is that it gives the successful complainant a preference over all the defendant's creditors; its theory is not that the complainant is trying to reach the defendant's property, but rather that the property which …

State And Local Taxation -- 1963 Tennessee Survey, Paul I. Hartman

Vanderbilt Law Review

I. Excise Tax--Entire Net Income of Domestic Corporation Engaged in Multistate Operations Attributable to Tennessee

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II. Privilege Tax as Applied to Foreign Corporation--Orders Solicited in State Accepted in Foreign State

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III. Applicability of Tax for Privilege of Doing Business to Foreign Corporation--Sufficiency of Local Activity

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IV. Use Tax--Exclusion if Subject to Sales Tax

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V. Franchise Tax--Leased Property Included in Measure

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VI. Privilege Tax on Persons Engaged in Business of Collecting Accounts--Deductability of Attorney's Fees from Gross Collections

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VII. Ad Valorem Tax--Applicability to Non-Domiciliary Interstate Motor Carriers

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VIII. Exemption of Religious Institution from Property …

Real Property - 1963 Tennessee Survey, Thomas G. Roady, Jr.

Vanderbilt Law Review

I. DEEDS

A. Construction

B. Suit to set aside deed

C. Restrictive covenants

II. TITLES

A. Easements

B. Actual Possession as Notice to Purchaser

III. EMINENT DOMAIN

A. Right to Incidental Damages

B. Value of Fee and Leasehold

C. Determination of Area Condemned

D. Liability of City for Land Condemned

E. Procedural Problems

IV. LEGISLATION

Commercial Transactions And Personal Property -- 1962 Tennessee Survey, John A. Spanoale

Vanderbilt Law Review

The Code, and its repealer provisions, will not become effective in Tennessee until June 30, 1964. This delay gives the practicing attorney fifteen months to become familiar with its provisions. This amount of time will be needed for such education, for the Code is a very large and detailed piece of legislation, and little has been written comparing the present Tennessee law to the Code. It is not the purpose of this article to attempt to summarize the effect of the provisions of this legislation on the present Tennessee law, but only to give notice that it has been enacted …

Real Property -- 1962 Tennessee Survey, Thomas G. Roady, Jr.

Vanderbilt Law Review

I. Deeds

A. Construction

B. Suit to Set Aside Deed

C. Boundary Disputes

II. Titles

A. Dedication

B. Easements

C. Avulsion, Accretion, Reliction

III. Eminent Domain

A. Right to Incidental Damages

B. Value of Leasehold

C. Measure of Damages for Diversion of Stream

D. Determination of Area of Land Condemned

E. Liability of City for Land Condemned Within Its Boundaries

IV. Landlord and Tenant

A. Liability of Landlord for Injury to Employee of Tenant Due to Defective Condition of Premises

B. Right of Landlord to Enforce Forfeiture Clause.

The Capital Gains "Holding" Dilemma, Allen Sultan

Vanderbilt Law Review

An important question under the capital gains provisions of the revenue laws is the meaning of the term "hold." The author studies judicial concepts of "holding" and concludes that inconsistencies have been introduced by judicial reaction to changing concepts of property. Noting that past legislative attempts to remedy the situation have been fruitless, he issues a call for "enlightened" congressional action.

Contracts -- 1961 Tennessee Survey (Ii), Paul J. Hartman

Vanderbilt Law Review

Statutes may impose a tax upon the transaction of certain business merely for the purpose of raising revenue, and not with any view of regulating the business itself. Even though such statutes impose a penalty for failure to comply with their provisions, contracts made without paying the requisite tax or obtaining the requisite license generally are not thereby made unenforceable. Of course, the legislature may provide that the failure to comply with a revenue statute will invalidate a bargain. But where, as in the Acuff case, the purpose of the statute is the protection of the public, a bargain made …

Real Property -- 1961 Tennessee Survey, Thomas G. Roady, Jr.

Vanderbilt Law Review

Probably no area of the law is fraught with more confusion than that involving construction of clauses in deeds and wills which impose some restraint on the conduct of grantees or devisees- seemingly not in the best interest of society. Clauses which tend to deter grantees or devisees from marriage or remarriage have constituted a fertile source of litigation for centuries. And though the stated rules of law prohibit and restrict the use of marriage or remarriage as a condition to vest or divest interests in real property, there are very few cases in which the courts in this country …

Recent Cases, Law Review Staff

Vanderbilt Law Review

Constitutional Law--Freedom of Speech--Prior Restraint on Motion Picture Exhibition

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Criminal Law--Murder--Year and a Day Rule Rejected in Pennsylvania

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Real Property--Restraints on Alienation--Conveyance Giving Housing Cooperative First Option to Buy and Right to Redeem is not an Invalid Restraint on Alienation

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Taxation--Income Tax--Uncompensated Casualty Loss Due to Drought Allowed as Section 165 Deduction

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Torts--Negligence--Fireman in Performance of Duties Allowed Recovery as Invitee

Federal And State Condemnation Proceedings--Procedure And Statutory Background, William E. Miller

Vanderbilt Law Review

The development of our modern and complex society has necessitated a widespread appropriation of private property for public use. The vital importance of present-day eminent domain is emphasized by the staggering proportions of recent and proposed takings in terms of the amount of land appropriated, its monetary value, and the number of individual citizens whose property is affected. In the Middle District of Tennessee alone--of course a small part of the national total-in excess of 700 tracts or parcels of land have been condemned during the past seven and one-half years for various projects, including the Old Hickory Dam and …