Question

In: Finance

1. Cosmo Kramer has an express easement across Jerry Seinfeld’s property that Kramer uses as a...

1. Cosmo Kramer has an express easement across Jerry Seinfeld’s property that Kramer uses as a right of way to reach a public road. In which of the following circumstances has the easement been terminated by estoppel?

  1. Kramer starts occasionally using a shorter right of way across a portion of Newman’s property to access the public road.

  2. Kramer signs a written document agreeing to extinguish the easement.

  3. There is a giant landslide on Jerry’s property that destroys the right of way.

  4. Kramer tells Jerry that he no longer will be using the right of way, and Jerry builds a swimming pool where the right of way used to be.

Solutions

Expert Solution

The circumstance under which the easement has been terminated by estoppel is :-

Kramer tells Jerry that he no longer will be using the right of way, and Jerry builds a swimming pool where the right of way used to be.

Explanation:-

An easement is an interest in real property that allows its holder to enter into the land of another person and make a specific use of it without possessing the property. In simple words, an easement is a right of one person to use (or control the use of) another person’s land. Easements are helpful for providing pathways across two or more pieces of property, allowing individuals to access other properties or a resource, for example, to the main road or public beach etc. For instance,  let's assume that the only way to access a public beach is through someone's private property (like a driveway). The neighbors have a right to access the beach, but must trespass in order to do it. An easement gives them the legal authority to do so, but in a limited way that is non-possessory and non-disruptive to the property owner.

An easement may be implied or express. An express easement is created by a deed or by a will. Thus, it must be in writing. Even when no document or agreement has created an express easement, an easement right may still be understood (or "implied") by a situation or circumstances. Generally, these types of easements are applicable to sectors of land that were once part of a larger sector of land, such as a three-acre plot split into six separate plots. Again, there are two parties to an easement :- The party gaining the benefit of the easement is the dominant estate or dominant tenant, while the party granting the benefit or suffering the burden is the servient estate or servient tenant.

There are many ways to terminate an easement. They are :- merger, release, estoppel, prescription, abandonment, destruction of servient estate, forfeiture and expiration. Hence, one of the ways of terminating an easement is by esstopel.

Estoppel terminates an easement in circumstances similar to termination by abandonment. But instead of terminating the easement because the dominant tenant has given it up as is the case in abandonment, estoppel terminates the easement because the servient tenant has relied upon the dominant tenant’s conduct that indicates his intent to give it up.

The servient owner must prove the following to establish termination of easement by estoppel:

  • The dominant tenant indicated that he/she no longer intended to use the easement, whether by doing the same kinds of things that indicate abandonment or by verbally indicating his/her intention.

  • The servient tenant reasonably relied on the dominant tenant’s indications of intent.

  • The servient tenant’s reliance would cause her to suffer a material detriment if the easement were not terminated.

  • If the dominant owner doesn’t directly indicate authorization but merely hasn’t been using the easement for a long time and then doesn’t object when the servient owner builds the obstructing improvement, the dominant owner may be estopped if the servient owner’s reliance was reasonable and he/she would suffer significant enough harm if the easement were not terminated.

However, a typical termination by estoppel occurs when the dominant tenant somehow indicates that he authorizes a substantial improvement of the easement by the servient owner that prevents the use of the easement.

So, in the above given problem, when Kramer tells Jerry that he no longer will be using the right of way or the easement, we can say, that the dominat tenant verbally indicated that he is no longer intended to use the easement, thereby, satisfying the first condition of termination of easement by estoppel.
At the same time Kramer, by telling Jerry that he would no longer use the right of way, the dominant tenant somehow indicates that he authorizes a substantial improvement by the servient owner that prevents the use of the easement. Thus Jerry builds a swimming pool where the right of way used to be and terminates the easement by estoppel.


Related Solutions

Cosmo has a margin account with a balance of $50,000 with a national broker-dealer. The initial...
Cosmo has a margin account with a balance of $50,000 with a national broker-dealer. The initial margin requirement on this account is 50%. Cosmo is interested in purchasing shares of Ardvark, Inc., which is currently selling at $40 per share. 1. Given the above information, how many shares of Ardvark can Cosmo purchase on margin? A. 625 B. 1,250 C. 2,000 D. 2,500 2. If Cosmo purchases 1,000 shares of Ardvark on margin and the price subsequently increases to $50...
1. Jerry was recently offered a position with a major accounting firm. The firm offered Jerry...
1. Jerry was recently offered a position with a major accounting firm. The firm offered Jerry either a signing bonus of $23,000 payable on the first day of work or a signing bonus of $26,000 payable after one year of employment. Assuming that he will remain at the firm for a least one year and given a relevant interest rate of 15%, which option should Jerry choose? a. The options are equivalent. b. Insufficient information to determine. c. The signing...
The Cosmo K Manufacturing Group currently has sales of $1,400,000 per year. It is considering the...
The Cosmo K Manufacturing Group currently has sales of $1,400,000 per year. It is considering the addition of a new office machine, which will not result in any new sales but will save the company $105,500 before taxes per year over its 5-year useful life. The machine will cost $300,000 plus another $12,000 for installation. The new asset will be depreciated using a modified accelerated cost recovery system (MACRS) 5-year class life. It will be sold for $25,000 at the...
Derive an expression for the instantaneous voltage across the capacitor. Express your answer in terms of...
Derive an expression for the instantaneous voltage across the capacitor. Express your answer in terms of the variables C, R, I0, and t. My previous answers that were incorrect: 1) VC=I0*Cos(omega*t)*R (Response was that the answer doesn't depend on (omega*t) 2)Vc=I0*Cos((1/RC)*t)*R (Response was Incorrect; Try Again; One attempt remaining You have found the voltage across the resistor. Note that the current and voltage across the capacitor are out of phase.) Previous question info: Part A) A 300 Ω resistor is...
Given a server.js file that uses express (i.e. var app = express();), write code to respond...
Given a server.js file that uses express (i.e. var app = express();), write code to respond to the routes below as specified in the description.  NOTE: all callback functions must be written in the new ES6 "Arrow Function" syntax: (1) Match the "GET" route "/users" and accept query string of "page=2&perPage=10" in the url, i.e. "/users? page=2&perPage=10". This route must show the following in browser: Query String Parameters: Page: 2 perPage: 10 Note: the query string parameters may have different values,...
Question 4 Jerry is the area co-ordinator for a State-wide community services program. Jerry has been...
Question 4 Jerry is the area co-ordinator for a State-wide community services program. Jerry has been in the job for five years now and knows the ins and outs of the program well. His job requires him to travel to each of the service delivery centres throughout the State to provide training and support to staff. Because of his experience in the program he is often called to provide advice of how to deal with various crisis situations. He is...
Fairyland has two citizens, Cosmo and Pixie. Each has the same utility function, U=ln(C) . Both...
Fairyland has two citizens, Cosmo and Pixie. Each has the same utility function, U=ln(C) . Both earn $1000 in their full-time jobs, but both face some risk of being laid off due to a potential shortage of fairy dust, in which case they will only earn $250 in an alternate part-time job. There is a 10% chance that Cosmo will be laid off and a 30% chance Pixie will be laid off.   The Governor of Fairyland, Jorgen von Strangle, is...
Kramer and Associates has the following account balances listed in alphabetical​ order: Accumulated​ Depreciation, $24,000; Accounts​...
Kramer and Associates has the following account balances listed in alphabetical​ order: Accumulated​ Depreciation, $24,000; Accounts​ Payable, $9,500, Accounts​ Receivable, $11,000;​ Cash, $4,000;​ Equipment, $47,000,​ Land, $23,000, Mortgage​ Payable, $46,000; Prepaid​ Insurance, $7,500;​ Supplies, $1,000; Unearned​ Revenue, $5,000; Wages​ payable, $2,000. Kramer and​ Associates' current liabilities​ are: A. ​$11,500. B. ​$62,500. C. ​$16,500. D. ​$57,500.
Chuck Stout is the RM for the Holiday Inn Express. His 220-room property normally sells 85...
Chuck Stout is the RM for the Holiday Inn Express. His 220-room property normally sells 85 percent of its rooms on Tuesday nights at an ADR of $141.50. All variable costs related to selling his rooms are $55.00 per room. The DOSM at his Holiday Inn Express is proposing to place a bid to sell 125 rooms for a Tuesday night next month at a rate of $109.00 per room. Chuck believes that if the hotel wins this group rooms...
. A certain supermarket has both an express checkout line and a super-express checkout line. Let...
. A certain supermarket has both an express checkout line and a super-express checkout line. Let X1 denote the number of customers in line at the express checkout at a particular time of day, and let X2 denote the number of customers in line at the super-express checkout at the same time. Suppose the joint probability distribution of X1 and X2 is as follows x2 0 1 2 0 0.1 0. 1 0.0 x1 1 0.1 0.2 0.1 2 0.0...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT