Ryder Memorandum

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Toronto Metropolitan University *

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401

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Law

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Jan 9, 2024

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TO: Ms Flyte FROM: 00505522 RE: Charlie Ryder (Possession rights of a finder v occupier) DATE: 16 October 2007 STATEMENT OF FACTS In October of 2006, 14 year old Charlie Ryder found an envelope wedged between his seat and the window of the No. 1 Brideshead bus, operated by Arcadia Transit (AT). Upon inspecting its contents, he discovered five $1000.00 bills and a note signed Rex Mottram. Charlie dismounted the bus at his stop and went home, notifying his mother of his find upon his arrival. AT bus tickets, transit passes, and transfers did not indicate what should be done with lost items. AT’s website was listed on the back of the transfer, and when the site was navigated to, a message stating the following was listed: “...the Lost and Found Office receives and stores all items found on Arcadia Transit vehicles and property. All articles found are held for sixty days before being sent to auction for disposal”. Additionally, AT’s internal policy dealing with lost items was listed. Each driver is required to check their vehicle once or twice during a shift to collect lost items. Charlie and his mother turned the money over to AT, identified where it was found and requested that the money be returned to them if the owner could not be found. AT contacted Rex Mottram who refused to acknowledge any involvement, nor did he express interest in the cash. After 60 days AT deposited the $5000.00 in their bank account. Each party is claiming a superior right of possession. ISSUES The main issue in this case under the law of finders is whether Charlie Ryder, as finder, has a better claim to the $5000.00 than AT, as occupier. This can be broken down to two sub- issues as follows: 1
1. Whether Charlie Ryder acquired finders rights when he discovered the $5000.00 on the bus and took the money into his possession. 2. Whether AT had prior possession of the $5000.00 as an occupier of the bus prior to Charlie finding it. BRIEF ANSWER Under the law of finders, it is likely that Charlie Ryder has a better claim to the $5000.00: 1. It is probable that Charlie acquired the rights of finder because he took the money into his care and control when he discovered it and fulfilled his obligations as finder by attempting to re-acquaint the money with its rightful owner. 2. It is not probable that AT can show prior possession of the $5000 as occupier because the intent to control and possess all property was not made clear and accessible to all AT users. ANALYSIS Issue 1: Rights of a Finder- whether Charlie Ryder acquired finders rights when he discovered the $5000.00 on the bus and took the money into his possession. The Law: Since the 18 th Century, the law has recognized that a finder acquires rights of possession superior to all others except the rightful owner. This precedent was established in Armory v. Delamirie (1722), 93 E.R. 664, S.M. 69 (K.B.) [ Armory ], and has become the foundation of finder’s rights. In Bridges v. Hawkesworth (1851), 21 L.J.Q.B., S.M. 70 (D.C.) [ Bridges ], the plaintiff found £55 on the floor of the defendant’s shop, who kept it on request of the plaintiff for the purpose of advertising for the rightful owner. After 3 years, the plaintiff returned seeking the £55, offering to pay the advertising costs, and to indemnify the defendant against any claims of the rightful owner. The issue was whether the place in which the money was found made any 2
legal difference. The plaintiff argued the precedent found in Armory, that the money was dropped accidentally, and that he did not intend to waive his title when giving the £55 to the defendant. The defendant argued that because the money was found in his shop, he had possession. The court held that the answer to the issue was no, and found for the plaintiff, awarding £50 and reversing the lower courts decision. The court reasoned that the £55 was “never in the custody of the defendant, nor within the protection of his house before they were found, as they would have been had they been intentionally deposited there” [ Bridges ]. This case contributes to the law of possession by showing that a finder’s rights of possession are second only to the actual owner, even when that article is found on another’s property who did not have care or custody of it. In Parker v British Airways Board, [1982] 2 W.L.R. 503, S.M. 71 (C.A.) [ Parker ], the plaintiff (Parker), discovered a gold bracelet on the floor of a passenger lounge. He handed it to a British Airways employee with instructions that it was to be returned to him if the rightful owner could not be found. The bracelet went unclaimed and British Airways sold it for £850 and retained the proceeds. One of the issues in this case was whether Parker took the bracelet into his control as finder. The court held that Parker did in fact acquire finders rights, stating: “...the plaintiff in taking the bracelet into his care and control acquired rights of possession except against the true owner and in handing it to an official of the defendants he acted honestly and in discharge of his obligations as finder” [ Parker at 71]. The court outlined three rights and obligations of the finder that are applicable to this issue. First, the court reasoned that the finder acquires rights to a chattel when it has been abandoned or lost, and he takes it into his care and control. Second, a finder acquires the right to keep a chattel against all but the rightful owner or one who can assert a prior right to keep the chattel. This right must have existed at the time of 3
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the finder took the chattel into his care and control. Lastly, the court reasoned that a finder has an obligation to re-acquaint a lost article with its rightful owner [ Parker at 76]. Synthesis of the Law: Finders rights are firmly grounded in the case law found in Armory. The finder acquires rights of possession superior to all others except the rightful owner. This precedent has been built on over time to affirm that a finder’s rights of possession are second only to the actual owner, even when that article is found on another’s property who did not have care or custody of it [ Bridges ]. Furthermore, a finder acquires rights when he takes a lost item into his care and control and assumes an obligation to re-acquaint a lost article with its rightful owner [ Parker ]. Application of Law to the Facts: It is probable that Charlie acquired the rights of finder because he took the money into his care and control when he discovered it on the AT bus. When the instant case is compared to the facts in Armory it is clear that an argument can be made to support the position that Charlie has acquired property rights second only to the rightful owner, as he is the one who found it. Charlie assumed the rights of finder, and acted honestly and properly in discharging his obligation as finder as required by the case law found in Parker. First, he acquired property rights when he took the money into his care and control after it had so clearly been lost. Second, he acquired the right to keep a chattel against all but the rightful owner or one who can assert a prior right to keep the chattel. Charlie acted properly in discharging his obligation as finder by giving the money to AT in an attempt to find the rightful owner. It should also be noted that Charlie did not waive title to the $5000.00 when he handed the money over as he stated that he wished he money to be returned to him if the owner could not be found. This was successfully argued in Bridges. 4
Charlie Ryder can demonstrate that he had control of the $5000.00 simply by the fact that he took it into is care and control. Animus possidendi was established when Charlie stated that he wished the money to be returned to him should the rightful owner not be found. AT could argue that Charlie Ryder did not act properly in fulfilling his obligation as finder because he dismounted the bus at his stop rather than notifying the driver. This could be countered with an argument centering on the fact that he is a 14 year old boy who needed to seek advice from his mother before acting, and that the obligation to re-acquaint the money with the owner was satisfied at the next available opportunity. Conclusion Based on the aforementioned discussion of Charlie Ryders rights of possession as the finder of the $5000.00, and given that he has satisfied the obligations of a finder it is clear that a strong argument can be made to answer the first issue in the affirmative -Charlie Ryder acquired finders rights when he discovered the $5000.00 on the bus and took the money into his possession. It is likely that the court will find AT’s position on this issue to be tenuous at best. The Armory and Bridges cases have been used numerous times in deciding finders rights. Although they are very old English Common law cases, they are persuasive on the Provincial Court in Alberta. Parker should also be considered persuasive. To determine who has the better right of possession overall, the second issue will now be discussed. Issue 2: Rights of an Occupier - whether AT had prior possession of the $5000.00 as an occupier of the bus prior to Charlie finding it. The Law: Under Common law, the occupier of a building or chattel (such as a vehicle) has rights of possession of lost articles under certain conditions. In Bridges, the occupier argued that because the money was found in his shop, he had possession. The Court held that the answer to the issue 5
in this case was no, reasoning that the £55 was “never in the custody of the defendant, nor within the protection of his house before they were found, as they would have been had they been intentionally deposited there” [ Bridges ]. Had the defendant been able to demonstrate care and control the outcome could have been in his favour. The rights and obligations of an occupier are described in Parker at 76. To paraphrase the rights and obligations applicable to the present case: An occupier of a chattel (AT bus) has superior rights of possession over a finder if the occupier can demonstrate that they have “manifested an intention to exercise control over the [chattel] and the things that may be upon it or in it” [ Parker at 76] Secondly, an occupier who manifests that intention and acquires rights superior to the finder is obligated to take steps to ensure that lost items are found, and to re-unite those lost items with their owner. The issues with respect to the occupier in Parker is whether British Airways had control of the lounge and whether British Airways manifested its intention to exercise control over the lounge and the property found on or in it. The Court held that the answer was no, reasoning that British Airways had not manifested control of the lounge, had not conducted regular searches of the premises for lost articles, and nothing was published or made obvious to the users of the lounge that lost articles should become the property of the occupier. In Canada (Attorney General) v. Brock (1993), 82 B.C.L.R. (2d) 1, S.M. 79 (C.A.), the Court ruled that the two elements of control and animus possidendi must co-exist for an occupier to claim possession rights over the rights of a finder. In this case, a large sum of money was found by the police concealed in Brock’s car. He denied ownership of the money until the next day. The issue before the court was whether Brock’s ownership of the vehicle gave him a superior claim of possession over the police who found it in the car. The court found for the City of West Vancouver, holding that Brock did not have exclusive possession of the vehicle as he regularly 6
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lent it to others. The court elaborated that on the day of the discovery of the money, Brock had possession of the vehicle but not the money in it because he had neither control of it, nor a manifest intention to control the money. “On the facts of the present case these two elements are missing...Brock did not purport to control the money in the vehicle nor did he in any way indicate an intention to possess it” [ Brock at para 53]. Synthesis of the Law: Case law demonstrates that an occupier assumes a greater right of possession over a finder if the occupier clearly has control and manifests an intention to control (animus possidendi) all chattel found in or on the land or a building. For purposes of interpretation, building includes chattel such as a vehicle [ Parker at 77]. When an occupier is successful in assuming rights of possession of a lost chattel, the occupier assumes the obligation to re-unite the chattel with the rightful owner. Application of Law to the Facts: On the second issue, it is likely that AT will argue that printing the website address on the transfer, and listing the information with respect to lost articles and their internal policy dealing with lost items was enough to manifest intent to control, and therefore is sufficient to prove their claims of possession as occupier. This argument is likely to fail based on the following discussion. The two-part test of possession in Parker at 77 specifies that the two elements of control and animus possidendi must both exist. To elaborate, in order for a claimant to succeed in proving possession, that control must be manifest to the casual observer, and the claimant must have custody of the property with the intent to exclude others from possessing it. 7
It is not probable that AT can show prior possession of the $5000 as occupier because the intent to control all property was not made clear and accessible to all AT users. Case law specifies that the intent to control must be manifest. This means that it must be clear and obvious to an observer. There was no signage on the bus or anything on the bus tickets, transfers, or passes that clearly indicated to passengers that AT manifested intent to control all objects found in or on their buses. The AT website listed the following message: “...the Lost and Found Office receives and stores all items found on Arcadia Transit vehicles and property. All articles found are held for sixty days before being sent to auction for disposal”. It is likely that if this case were to go to trial the Court would find this insufficient to manifest intent to control because the website was listed only on the transfer. Not all users of AT buses will obtain a transfer. Not all users of an AT bus who do obtain a transfer will have access to a computer or indeed knowledge enough to navigate to a webpage. Furthermore, the message listed on the website does not give specific instructions to finders of lost articles. The wording of the messages listed on the website are such that they read like an information for AT users who have lost articles, not instructions for those who found them. The fact that AT listed their internal policy to conduct periodic searches is also insufficient to manifest intent to control for the reasons stated above. Using the precedent found in Bridges , it can be argued that AT did not have care and custody of the money when it was found by Charlie Ryder. The facts of each case are similar in that neither Mr Hawkesworth, not the AT driver had any knowledge of the money before it was found, therefore neither assumed any property rights or had any duties as occupier imposed upon them [ Parker at 74]. When applying the case law found in Bridges to Charlie’s situation a case can be made to prove that AT did not have care or custody of the money. When Charlie found the envelope containing the money it was wedged between a seat and the window side of the bus, 8
making it highly unlikely that the AT driver would have had any knowledge of it being there. If the driver had no knowledge of its existence, then he could not possibly exercise the same degree of care and control as Charlie could by taking it into his possession. The ratio in Brock states that the two elements of control and animus possidendi must co- exist for an occupier to claim ownership over a finder. Brock failed to demonstrate control over his vehicle because he regularly leant it to others. Similarly, it can be demonstrated that AT lacked strict control over their buses because any person could gain access to them by simply paying a fare. Conclusion An argument can be presented to show that AT did not have strict control and failed to manifest their intention to control chattels found on their property. Based on the discussions above, it is unlikely that AT can successfully present an argument in support of their position as occupier. The decision found in Brock should be considered persuasive by the Provincial Court of Alberta. CONCLUSION It is likely that this matter will be resolved in favour of Charlie Ryder. On an examination of the facts and comparison with the applicable case law it can be clearly demonstrated that Charlie has assumed the rights of a finder, and that he has properly discharged the associated obligations. AT on the other hand, did not properly manifest their intention to control. This shortcoming prevents AT from asserting their rights as occupier. 9
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