Acquisition by Adverse Possession

Adverse Possession of Chattels

(P) O'Keeffe v. Snyder

Supreme Court of New Jersey, 1980

416 A.2d 862
Pages 151-161 Case Book

Facts: In 1946 three paintings by O'Keeffe were stolen from an art gallery operated by her
husband, Stieglitz. O'Keeffe suspected that Estrick may have stolen the paintings. However, she
did not confront him about it; nor did she report the theft to the police. She said she didn't do
anything because she was settling her dead husbands estate. Then in 1972 O'Keeffe authorized
Bry to report the theft to the Art Dealers Association of America. In 1976, she found out that a
guy named Snyder bought them from another guy named Frank. Frank said he got them from his
father and said his father had them as early as 1941. Snyder conceded that the paintings are
stolen. Frank claimed continuous possession for over 30 years thru his father and claimed title
thru adverse possession.

Procedural History: Trial court granted summary judgment for Snyder. P appealed, Appellate
division granted summary judgment for the O'Keeffe. D appealed.

Issue: If possession of chattels is obtained through theft, and the true owner makes diligent
efforts to locate and recover the chattels, is the statute of limitations for adverse possession
tolled?

Holding: Reversed and remanded for trial in accordance with opinion.

Reasoning: Yes, a thief cannot transfer good title. If Frank acquired a voidable title from his
father, who may have been the thief, Frank has the power to transfer good title to a good faith
purchase under the U.C.C. If Snyder was not a good faith purchaser, or if Frank did not have
voidable title, Snyder may still acquire title by adverse possession.

RULE:

The statute of limitations is tolled if the owner of stolen chattel makes diligent efforts to locate
and recover the lost chattel.

Court makes it more difficult to obtain title to personal property by adverse possession: if the
owner uses diligence to locate and recover the property, the statue is tolled.

VOCAB:

1. Conversion: to take property from another

2. Discovery Rule: the rules by which one may obtain title to chattels by adverse possession. It
provides that the statute of limitations does not run if the true owner uses diligence to discover
the possessor of his property.
Acquisition by Adverse Possession
Adverse Possession of Chattels

3. Implead: to bring a third party into a lawsuit on the ground that such third party is liable to
the defendant.

4. Interrogatory: a formal set of questions propounded to a party designed to elicit the facts.

5. Legatees: a person who takes property under a will.

6. Plenary Hearing: a complete hearing of a case to fully determine the facts.

7. Replevin: an action to regain possession.

8. Replevy: to take or get back by a right for replevin.

9. Summary Judgment: judgment rendered in a case based only on consideration of the law,
where there is no dispute of the facts.

10. Voidable Title: title which remains valid until the true owner asserts ownership