Property

Four-year statute of limitations to compel appropriation proceedings is not subject to tolling

Friday, February 26th, 2010

In a 6-1 decision Thursday, the Ohio Supreme Court held that the four-year statute of limitations in R.C. 2305.09(E) barred property owners from seeking a writ of mandamus to compel appropriation proceedings against a park board, where the board had constructed a nature/walking trail on their property.

The majority rejected the property owners’ claim that the statute was tolled due to a continuing violation; rather than a continuing violation, the Court characterized the repeated use of the trail by the park board and the public as “the present effect of past violations” and explained that “a continuing violation is occasioned by continual unlawful acts, not continual ill effects from an original violation.” And the Court held that it was just one event — the construction of the trail — which constituted the violation in this case.

In dissent, Justice Pfeiffer argues that repeated entrance onto the property of the relators constituted repeated or continuing violations of their constitutional property rights. He likens it to a continuing trespass or nuisance, in which the statute of limitations is tolled, and he rejected the argument that a tolling rule would render the statute of limitations meaningless–it would still apply, for example, to temporary takings or true single-event takings, such as the installation of a utility line for which no repeated access is necessary.

The language of the statute at issue here does appear to favor the majority — R.C. 2305.09 provides that an action “[f]or relief on the grounds of a physical or regulatory taking of real property” “shall be brought within four years after the cause of action accrued.” But refusing to recognize a tolling rule also seems to run afoul of Section 19, Article I of the Ohio Constitution, which provides in part that “Private property shall ever be held inviolate . . . .” And it seems to me that even if the four years expired based on the initial installation of the trail, the subsequent installation of benches, parking areas, and so on would be new violations which would not rely on a tolling rule at all.

Almost as a side note, the Court observed in reference to prior litigation on similar issues that “[u]nlike other judgments . . . a declaratory judgment determines only what it actually decides and does not preclude other claims that might have been advanced.” Is this authorization from the Supreme Court to use a dec action to circumvent the normal rules of res judicata? It may be.

All in all, an unusual decision from the Court, and one which is not especially friendly to property rights.

The case is State ex rel. Nickoli v. Erie MetroParks, 2010-Ohio-606 [PDF].


Right of access to property and appropriations by government

Thursday, February 18th, 2010

Did you know that the government may be effecting a “taking” — and therefore may be constitutionally required to compensate you — by raising or lowering the grade of the road adjacent to your property?

In State ex rel. McKay v. Kauer, the Ohio Supreme Court held that lowering the grade of a road to the extent that it unreasonably hinders access is a taking, and if the government so lowers the road then it must institute appropriation proceedings to compensate the landowner. In State ex rel. OTR v. City of Columbus, the Ohio Supreme Court made a complementary holding as to raising the road level. And in State ex rel. Hilltop Basic Resources v. Cincinnati, the Court explained that these rights are equally protected for both developed and undeveloped land and developed and undeveloped rights of access. “Instead,” the Court wrote, “the applicable test is whether the governmental action substantially or unreasonably intefered with the landowner’s right of access to the public street or highway on which the land abuts.”

Has access to your property be hindered or made more difficult due to the raising or lowering of the street grade?


Sixth Circuit on quasi-estoppel

Monday, November 30th, 2009

In Bonner Farms v. Fritz [PDF] the Sixth Circuit, applying Ohio law, ruled that quasi-estoppel operates to bar a claim or defense only when a party’s actions are “inconsistent” with its litigation position.  As applied here, that means that the plaintiff’s decision to negotiate “royalty” checks did not bar its litiation position that the oil and gas lease on their property had been terminated; negotiating the checks was equally consistent with termination of the lease (in which case the checks constituted only partial payment for the gas withdrawn by the defendants) as with continuation of the lease (in which case the checks constituted full payment).


European Court of Justice to weigh in on Google AdWords

Monday, November 23rd, 2009

So says the Sunday Business Post.  Portakabin, which appears to be a builder of pre-fab housing or office space, has sued rival Primakabin, after Primakabin purchased the keyword “portakabin” from Google and caused it to redirect to Primakabin’s web site.  Portakabin claims this amounts to trademark infringement, though it is not clear from the linked article whether they feel that Primakabin, Google, or both are infringing their trademark.

I’m not familiar with European law on this subject, but in the United States, section 43(a) of the Lanham Act (15 U.S.C. 1125(a)) would control.  That section creates civil liability for

[a]ny person who . . . uses in commerce any word, term, name, symbol, or device . . . which . . . is likely to cause confusion, or to cause mistake, or to deceive as to the affiliation, connection, or association of such person with another person, or as to the origin, sponsorship, or approval of his or her goods, services, or commercial activities by another person . . . .

Under this “likelihood of confusion” test, a person commits trademark infringement whenever a mark is used in a manner which causes confusion as to the source of the goods, services, or commercial activities.  This would seem like a pretty clear-cut case for Portakabin against Primakabin — by purchasing the keyword from Google, Primakabin had users searching for Portakabin’s trademark directed to Primakabin.  That’s likely to cause confusion about the source of goods for the consumer who arrives at the Primakabin web site.  (Note that the test is not whether a user is likely to be confused by the web site.  The test is whether the consumer is likely to think that the goods, services, or commercial activities come from one source when they actually come from another.  Which is to say, there is a likelihood of confusion — indeed actual confusion — in the trademark sense if a consumer never even knows that he has arrived at Primakabin’s web site, and think he’s getting something from Portakabin the entire time.)

Perhaps the more interesting question would be whether Google has any liability under US law.  The Lanham Act does not expressly provide for contributory trademark infringement, but occasionally plaintiffs do succeed on such a theory.  Earlier this year, a California jury hit two web sites with a verdict of $32 million for contributing to the infringement of Louis Vuitton’s trademarks.  (In Europe, several cases of contributory infringement against eBay have been widely publicized.)

Also interesting is what this question does to the AdWords business model.  Google sells advertising space on its search result pages which is customized to the searched-for keywords.  If nobody can purchase a trademarked keyword, Google stands to lose any revenue it otherwise could have obtained from the sale.  (That is, if only the holder of the mark can purchase it, the purchase price will be low or zero.)


Permissive use can never become prescriptive easement

Monday, September 14th, 2009

The Twelfth District has recently re-affirmed the long-standing principle that “a party’s permissive use of land cannot ripen into an easement by prescription, no matter how long it may be continued.”

The case is McCumbers v. Puckett, 2009-Ohio-4465 [PDF].