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Possession is nine-tenths of the law - sometimes

Paul B. Fogo is a senior attorney with Miller, Canfield, Paddock & Stone.

Before I ever entered law school, I always thought that possession of something equaled ownership. When I was a kid, my brother and I used to look in pay phones for coins that someone might have left by mistake. One time I found $2 in quarters at an airport phone booth. I was rich! A few minutes later I was only half as rich when my mother told me I had to share it with my brother. I wasn't too happy with her decision, but the event taught me a lesson about the law. Possession is only good if it isn't challenged by someone with an equal or superior ownership right. In my case, Mom represented the law and my brother represented the adverse party. Thirty some years later, I think it's time to test what I learned as a kid about the law of "finders keepers" with the actual law in the adult world, otherwise known as the law of adverse possession.

Ownership by adverse possession is established by several methods, depending on the character of the item and means of acquisition. First, let's take a look at real property. According to Art. 172 of the Civil Code, the "possessor of real estate who is not its owner shall acquire ownership if he or she possesses the property continuously for 20 years unless such acquisition is in bad faith." In other words, if you own property in Bieszczady and you haven't visited it in several years, you might want to go check on it to make sure someone hasn't made an "innocent" mistake and built their vacation home on your property. This time period to gain ownership by adverse possession is extended to thirty years in the event the possessor acquires your property in "bad faith." In reality, what usually happens is that a neighbor will make an innocent mistake about the boundaries of his property, and proceed to construct all or a portion of his enterprise or home on the adjoining property. Being a nice person and not wanting to cause an argument, the owner of the adjoining property may remain silent, especially if the trespass only extends a few meters. But be warned, silence for too long will enable your innocent neighbor to acquire ownership of your property.

Movable items, such as televisions, automobiles and bicycles, may be acquired by adverse possession after only three years as long as they were not stolen. Art. 174 states that the "possessor of a movable thing who is not its owner shall acquire ownership if he or she possesses that thing continuously for three years on an exclusive basis unless he possesses it in bad faith." Unlike real property, a thief cannot acquire ownership of an automobile by adverse possession. I guess the law is different in Belarus.

Bees have a special status in the Civil Code. According to Art. 182, a beekeeper will lose ownership of his honey bees if such "swarm of bees moves to another occupied bee-hive belonging to a different bee-keeper..." However, Art. 182 does permit a bee-keeper to pursue his wayward honey bees for up to three days following their defection to a neighboring property, subject to "redressing the resulting damage" to the neighbor. Unlike Art. 174, which transfers ownership after the lapse of three years, the ownership of bees will transfer after only three days. Apparently bees do not make very loyal pets. Cattle and other livestock are subject to the three-year rule set forth in Art. 174.

In order to keep a found item and obtain ownership after three years, or in the case of bees three days, the finder, according to Art. 183, must "notify the person entitled to receive it," or if unable to locate the proper owner, "notify the competent State authority about the finding."

Other restrictions prohibit the acquisition of a movable item by adverse possession if the item is found in certain public areas. Art. 188 stipulates that the finder of an "item found in a public building, railway coach, ship or other means of public transport is obliged to turn over the thing to the administrator of the building or means of public transport."

Liquid assets, such as money and securities, along with other valuable items, are treated differently by the Civil Code. Unlike Art. 174, which enables the finder of an item to gain ownership after the lapse of three years, "money, securities, valuables and things which have a scientific or artistic value shall be immediately turned over to the State." If the rightful owner does not claim his lost money within two years, the cash and other valuables will become property of the State. The finder, according to Art. 186, will then be entitled to receive a "finder's fee in the amount equal to one tenth of the value of the thing."

According to my math, if I had turned over the $2 that I found in the airport phone booth when I was a kid to the State, I would be entitled to receive a finder's fee of 20 cents after the lapse of two years. I'm glad my mom wasn't a lawyer, otherwise she probably would have made me turn over my new-found treasure to the State, as opposed to simply sharing it with my brother. Thirty some years later and thousands of dollars spent on a legal education, I now realize that Mom made the right decision. Thanks, Mom.

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