Property and Sovereignty.

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Property 1

Lent Term 2004

1 Property and Sovereignty

A. The emergence of native title

1 Themes and Questions

These lectures, and the accompanying seminars, focus on the question of indigenous title. In the common law world, claims to indigenous title have become especially prominent in North America and Australia, where Aboriginal peoples, or the `First Nations’, have sought ownership of their ancestral lands. Substantively, these claims might be construed as demands for some measure of sovereignty or self-determination, but they take the form of claims to the ownership of land. As a result, the private law structure of rights in land has been exposed to a number of political questions about the justification of sovereign acquisition, and a set of theoretical questions about the nature of property. From our perspective, claims to indigenous title are to the point precisely because they expose a number of the hidden assumptions which structure commonsense ideas about ownership as much as developed doctrines of property law. We approach the question of indigenous title by reflecting on the form of 'native title' which was recognised by the High Court of Australia in Queensland v Mabo (No2) (1992). We set this contemporary discussion in relation to the conception of property that was developed by John Locke some three hundred years ago, and which is still the most influential justification of ownership. In the last set of lectures in this part of the course, we return to the legal formulation of native title, with particular reference to the question of how native title is `extinguished’.         

2 Terra nullius 

What did the British Crown get when it `took’ the continent of Australia? According to what might now be called the `discredited’ view, `on the foundation of New South Wales, every square inch of territory in the colony became the property of the Crown’ (Milirrpum v Nobalco (1971) FLR 245, per Blackburn J.).

The basis of this finding was the long-standing legal determination that Australia was terra nullius at the time it was colonised:

The waste lands of this Colony are, and ever have been, from the time of its first settlement in 1788, in the Crown; ...they are, and ever have been, from that date ...in the Sovereign's possession.

The territory of New South Wales, and eventually the whole of the vast island of which it forms a part, have been taken possession of by British subjects in the name of the Sovereign. They belong, therefore, to the British Crown...

(Attorney General v. Brown (1847) 1 Legge 312)

The concept of terra nullius emerges from international law, so it should initially be understood in terms of the three basic ways in which territory could be acquired in international law: conquest, cession, and occupation. One should also distinguish between discovery and possession. In undertaking his 1776 expedition, Captain Cook was authorised `with the consent of the Natives to take possession, in the name of the King of Great Britain, of convenient situation in such countries as you may discover, that have not already been discovered or visited by any other European Power…But if you find the Countries so discovered are uninhabited, you are to take possession of them for His Majesty’ (cited in Reynolds, The Law of the Land, at p 52). So, discovery was just the preliminary step to taking possession.

Moreover, it was unusual for states to justify their acquisition of territory in terms of the occupation of a terra nullius:

It appears that, on the whole, European States, in establishing their dominion over countries inhabited by peoples in a more or less backward stage of political development, have adopted, as the method of such extension, Cession of Conquest, and have not based their rights upon the Occupation of territorium nullius.

(M.F. Lindley, The Acquisition and Government of Backward Territory in International Law (1926), at p 43).

           

Even where territories were taken by conquest or cession, the new sovereign was expected to respect for the inhabitants and their established laws (the case of French Canada, which, having been first colonised by the French, was then taken by the British Crown in 1760, offers an interesting parallel). Yet, the same respect was not shown to indigenous Australians. And, before the decision in Mabo No 2, indigenous people themselves identified the continuing insistence that Australia had been terra nullius as emblematic of the historically racist stance of the Australian government:

[T]he arrogance displayed towards indigenous Australian people is epitomised by Australia’s failure to recognise the fundamental basis of its claim to territorial sovereignty. The discredited racist doctrine of Terra Nullius lies at the heart of the issue. The failure by the original British colonists to recognise the efficacy, legitimacy and integrity of Aboriginal people’s culture and their legitimate claim to possession precipitated and justified the original genocidal acts. The failure of modern Australia to denounce Terra Nullius and its implications perpetuates attitudes and conditions which will continue to affect Aborigines in a similar manner as did the original genocidal acts.

(Aboriginal submission to the United Nations Commission on Human Rights , 1986)

3 The Mabo litigation

The Meriam people may have been particularly strong candidates for native title because they were recognised as almost English. They were, apparently, `a stable community’ with `a strong of sense of the observation of propriety in respect of land.’ So, where in the Gove case a different indigenous group – the Yolngu – had lost their claim in part because they were seen as having only a spiritual relationship with their land, the Meriam were seen as having an instrumental or economic relationship with their land:

The evidence seems to establish that within the boundaries of a village the land continues to be divided into what in modern town planning jargon might be referred to as single residential lots or house sites upon which is erected a single unit dwelling… Each site was and is divided from the adjoining site by some geographical or artificial feature, although on occasion adjoining occupiers might share some facilities. The rights associated with a site include a right to use it for domestic residence to the exclusion of others and an entitlement to determine the disposition of land, either during life or as a consequence of death.

(Findings of fact of Moynihan J in Mabo No2 at first instance).

The point here is that `the Meriam's land tenure system has qualities - in particular private rights to land - which bear a recognisable resemblance to Western property rights’ (Nonie Sharp, `No Ordinary Case; Reflections Upon Mabo (No 2),' in (1993) 15 Sydney Law Review, at p 154). Also, the Meriam people seemed to evidence judicially recognisable continuity in their genealogy and traditions:

The people who were in occupation of these Islands before first European contact and who have continued to occupy these Islands to the present day are known as the Meriam people.  Although outsiders, relatively few in number, have lived on the Murray Islands from time to time and worked as missionaries, government officials, or fishermen, there has not been a permanent immigrant population.  Anthropological records and research show that the present inhabitants of the islands are descended from the people described in early European reports.  The component of foreign ancestry among the present population is small compared with most communities living in the Torres Strait.  The Meriam people of today retain a strong sense of affiliation with their forbears and with the society and culture of earlier times.  They have a strong sense of identity with their Islands.  The plaintiffs are members of the Meriam people.’  (Brennan, J. in Mabo No 2)

However, in 1879 the islands were formally annexed and declared to be part of the Colony of Queensland, so that henceforth they were administered from mainland Queensland. There was an island court administered by a Meriam chief, which dealt with such things as property disputes, but there is no doubt that the islands were under the control of the colonial government. What was the effect of that annexation?  

4 Distinguishing property from sovereignty: the concept of radical title

The majority view in Mabo: was that the doctrine of terra nullius should be recognised to have been inapplicable to the colonisation of Australia:

The theory that the indigenous inhabitants of a `settled' colony had no proprietary interest in the land [depends] on a discriminatory denigration of indigenous inhabitats, their social organisation and customs. As the basis of the theory is false in fact and unacceptable in our society, there is a choice of legal principle to be made in the present case. … It is imperative in today's world that the common law should neither be nor be seen to be frozen in an age of racial discrimination.

(per Brennan J at pp 421 and 422).

Rather than apply that doctrine, the court held that the acquisition of sovereignty does not imply the acquisition of property:  

The strong assumption of the common law was that interests in property which existed under native law or customs were not obliterated by the act of State establishing a new British Colony but were preserved and protected by the domestic law of the Colony after its establishment. Thus, in In re Southern Rhodesia [1919] AC, at p 233, the Privy Council expressly affirmed that there are 'rights of private property', such as a proprietary interest in land, of a category 'such that upon a conquest it is to be presumed, in the absence of express confiscation or of subsequent expropriatory legislation, that the conqueror has respected them and forborne to diminish or modify them'. Similarly, in Amodu Tijani v Secretary, Southern Nigeria ('Amodu Tijani') [1921] 2 AC 399, at p 407, the Privy Council affirmed and applied the 'usual' principle 'under British ... law' that when territory is occupied by cession, 'the rights of property of the inhabitants (are) to be fully respected'.

(per Deane and Gaudron JJ).

By attributing to the Crown a radical title to all land within a territory over which the Crown has assumed sovereignty, the common law enabled the Crown, in exercise of its sovereign power, to grant an interest in the land to be held of the Crown or to acquire land for the Crown's demesne. The notion of radical title enabled the Crown to become Paramount Lord of all who hold a tenure granted by the Crown and to become absolute beneficial owner of unalienated land required for the Crown's purposes. But it is not a corollary of the Crown's acquisition of a radical title to land in an occupied territory that the Crown acquired absolute beneficial ownership of that land to the exclusion of the indigenous inhabitants. If the land were desert and uninhabited, truly a terra nulllius, the Crown would take an absolute beneficial title (an allodial title) to the land [because] there would be no other proprietor. But if the land were occupied by the indigenous inhabitants and their rights and interests in the land are recognised by the common law, the radical title which is acquired with the acquisition of sovereignty cannot itself be taken to confer an absolute beneficial title to the occupied land.

(per Brennan J)

What exactly is `radical title’? The phrase is first used in a decision of the Privy Council with respect to indigenous title in New Zealand, but it has never been used as a term of art. Perhaps the reference to `allodial title’ suggests part of what is going on here. To some extent, radical title is a way of modernising the old idea of feudal tenure. In other respects, it is a way of trying to hold the difficult balance between property and sovereignty.    

5 How is native title recognised?

Native title has its origin in and is given its content by the traditional laws acknowledged by and the traditional customs observed by the indigenous inhabitants of a territory.

Where a clan or group has continued to acknowledge the laws and (so far as practicable) to observe the customs based on the traditions of that clan or group, whereby their traditional connexion with the land has been substantially maintained, the traditional community title of that clan or group can be said to remain in existence. The common law can, by reference to the traditional laws and customs of an indigenous people, identify and protect the native rights and interests to which they give rise. However, when the tide of history has washed away any real acknowledgment of traditional law and any real observance of traditional customs, the foundation of native title has disappeared. A native title which has ceased with the abandoning of laws and customs based on tradition cannot be revived for contemporary recognition. (per Brennan J.).

What does this mean?

What is involved in recognising native title? According to some commentators, native title is just an additional – if somewhat exceptional – category tacked on to the structures of Anglo-Australian property law. But it might be argued that title based in the (normative) culture of indigenous groups implies something more than this:    

The recognition of native title is about far more than simply the recognition of a particular kind of land tenure, surviving from the period before contact. It is intrinsically bound up with issues of political organisation and self-government. This is true, first, in that the title is grounded in and its content determined by contemporary indigenous societies, which have their own legal orders and their own continuing capacity for legal change. Indigenous societies are, by the very doctrine of indigenous title itself, contemporary polities with continuing control over their own normative orders (at least until displaced). The recognition of indigenous title is simultaneously a recognition of that political capacity.

(Jeremy Webber, `Beyond Regret: Mabo’s Implications for Australian Constitutionalism’).

The question is whether or how the recognition of political capacity affects property doctrine.  

6 Why feudalism?

The idea that doctrines ascribed to feudalism  are central to Anglo-Australian land law, and impose limits to the development of the jurisprudence of native title:

The peace and order of Australian society is built on the legal system. It can be modified to bring it into conformity with contemporary notions of justice and human rights, but it cannot be destroyed. It is not possible, a priori, to distinguish between cases that express a skeletal principle and those which do not, bit no case can command unquestioning adherence if the rule it expresses seriously offends the values of justice and human rights (especially equality before the law) which are the aspirations of the Australian legal system. If a postulated rule of the common law expressed in earlier cases seriously offends those contemporary values, the question arises whether the rule should be maintained or applied. Whenever such a question arises, it is necessary to assess whether the particular rule is an essential doctrine of our legal system and whether, if the rule were to be overturned, the disturbance to be apprehended would be disproportionate to the benefit flowing from the overturning.

(Mabo No2, per Brennan J).

In what senses might the feudal structure of land law doctrine be said to be essential to Anglo-Australian land law?      



Week 1: Questions for seminar discussion

1.        What elements have to be proved in seeking to establish native title?

2.        What kind of materials or evidence would you need to assemble in seeking to make good such a claim?

Readings*

Shaunnagh Dorsett        `Land Law and Dispossession’, in Bright & Dewar, eds, Land Law: Themes and Perpectives, pp 279-301.

Susan Reynolds                        Fiefs and Vassals, OUP, 1994, pp 48-74.

*All readings are contained in the Property I Study Pack

Case

Mabo v Queensland [1992] 66 CLR 408, esp. judgment of Brennan J and Toohey J (attached as Appendix One).

Further Reading

James Clifford                        The Predicament of Culture, ch 12

Hocking & Hocking        `Australian Aboriginal Property Rights as Issues of Indigenous Sovereignty and Citizenship’ (1999) 12 Ratio Juris 196.

Ivison et al (eds)                Political Theory and the Rights of Indigenous Peoples, esp chs 4 & 9.

Kerruish & Purdy                `He Look Honest – Big White Thief’ (1998) Law/Text/Culture 146.

Valerie Kerruish                `In the Court of the Strange God’ (2002) 13 Law & Critique 133.  

Sharon Korman                The Right of Conquest, esp ch 2.

Kent McNeil                        Common Law Aboriginal Title


B. Locke and the justification of appropriation

1 Locke and the primacy of property 

Well before the time of Locke, there were extensive discussions (in a conceptual vocabulary inherited from Roman law) of how dominium was distinguishable from imperium, and of the status of those `things’ which fell within imperium (e.g. res communes, res nullius). But Locke provided the most influential justification of what might be called `post-feudal’ ownership. In feudalism, property and sovereignty were indistinguishable, if only because there was, quite simply, `no idea of state and very little idea of impersonal, public obligations at all’ (Reynolds, Fiefs and Vassals, at page 20).

What were Locke's concerns in America and England? In America, the question of property and natural rights is of practical significance to Locke. It is important to note that Locke was not just thinking about these questions in his library, but that he was also involved in applying some of his answers to the problem of ordering and justifying the colonial administration of America in the late 17th century:

Locke had extensive knowledge and interest in European contact with aboriginal peoples. A large number of books in his library are accounts of European exploration, colonization and of aboriginal peoples, especially Amerindians and their ways. As secretary to Lord Shaftesbury, secretary of the Lord Proprietors of Carolina (1668-71), secretary to the Council of Trade and Plantations (1673-4), and member of the Board of Trade (1696-1700), Locke was one of the six or eight men who closely invigilated and helped to shape the old colonial system during the Restoration. He invested in the slave-trading Royal Africa Company (1671) and the Company of Merchant Adventurers to trade with the Bahamas (1672), and he was a Landgrave of the proprietary government of Carolina. His theoretical and policy-making writings on colonial affairs include the Fundamental Constitutions of Carolina (1669), Carolina's agrarian laws (1671-2), a reform proposal for Virginia (1696), memoranda and policy recommendations for the boards of trade, covering all the colonies, histories of European exploration and settlement, and manuscripts on a wide range of topics concerning government and property in America.

(Tully, Locke in Contexts).

The justification of appropriation in America depends on qualifiying it as a state of nature. What does that mean? One could say, following Hegel, that it is just a fiction:

The idea of the mass of individuals in a state of nature is an abstraction disguised as an empirical observation. The abstraction is constructed on the strength of the argument that all known social relations, customs and historical institutions are contingent and transitory. What remains after these historical residues have been subtracted, the chaos of individuals, is then said to be both `the basic truth of men’s condition’, and merely a `fiction’ which has to be imagined.

(Gillian Rose, Hegel Contra Sociology, at p 52, summarising Hegel’s essay on natural law).

The fictitious character of the `state of nature’ was probably quite clear at the time. We know that the process of colonisation was initially sustained by trade with Native Americans, and treaties which were concluded then still serve as a starting point for reflection on the question of indigenous title in North America.

 

Whether or not it should be seen as a fiction in this specialised sense, the model of the state of nature serves as a context for Locke’s account of natural law and the duty to preserve mankind. It also serves as a starting point for Locke’s invocation of labour as the basis for the acquisition of justifiable title to things. Rousseau, who argues in La Nouvelle Héloïse, that `La nature a tout fait, mais sous ma direction’ offers an interesting counterpoint to Locke here.

The theory of labour is also, and perhaps more directly, addressed to a debate that was taking place in England. Locke was opposed to the absolutism of the Stuart kings, and James II in particular. He had a quite specific adversary in mind, namely Sir Robert Filmer, whose Patriarcha, written in mid-17th century and re-published in 1679/80 was re-published in 1680 in an attempt to justify the right of James to succeed Charles II. Patriarcha became the sort of theoretical standard around which the various supporters of divine right gathered. The essential thesis of this work was that God had given the world to Adam in fee, and that it descended through him to his successors. The essential text is Genesis 1.28, which gives Adam dominion over `every living thing that moveth over the Earth’. Locke’s argument can be seen as an alternative interpretation of God’s original grant, an interpretation which argues for `ascending’ rather than `descending’ government.

2 Property and the emergence of `political individualism’

Locke may have had mediaeval precursors, notably William of Ockham and John of Paris:

Ockham, like John of Paris, does not try to give property rights to men, but attempts to describe the kinds of powers men have as individuals prior to government in the realm of power over things, and subsequently, to analyse the role of government in preserving or augmenting such power. [M]en were described in fourteenth-century political theory, in legal treatises, in political poetry and prose, polemic and ephemera, as individuals controlling their lives by being in some way responsible for their material welfare. Dominium in a variety of interpretations was taken to be the basic fact of their individualism.

(Janet Coleman, `Dominium in Thirteenth- and Fourteenth-Century Political Thought and its Seventeenth-Century Heirs; John of Paris and John Locke’(1985) 33 Political Studies 73.

What are the components of the power over material things that property is taken to be? How is that power over material things to be distinguished from the power possessed by popes or kings?

How does the idea of a distinct proprietary entitlement detach itself from the model of feudal relations? Or was the traffic the other way? Were originally proprietary relationships recast as feudal relationships by lords who discovered the idea of feudalism via the interpretations of a certain school of academic law, as Reynolds suggests? How does Locke’s theory work when land is eclipsed by money?

3 Individualising common property 

What was the nature of God’s grant to Adam? If Locke is right that God’s original grant established a regime of common property, how does this common property become private property? Filmer’s supporters were quick to point out this problem:

        [Locke says] that by the law of nature all things were at first common, and yet teacheth, after that propriety was brought in, it was against the law of nature to use community. He does thereby not only make the law of nature changeable, which he saith God cannot do, but he also makes the law of nature contrary to itself.    

How can a right that is a common right become private? Property, common and private?; the ius ad rem, or claim right, and the ius in re, a right of ownership in something that one presently possesses.

Week 3: Questions for seminar discussion

1.        What is the difference between property and sovereignty?

2.        How do you think Locke would have regarded the justification offered by Toohey J for recognising traditional title?

Readings

John Locke                2nd Treatise of Government, ch V.

Susan Reynolds                Fiefs and Vassals, OUP, 1994, pp 48-74

James Tully                 An Approach to Political Philosophy: Locke in Contexts, CUP, 1993, chapter 5.

Further reading

John Dunn                        Locke's Political Philosophy

Alan Ryan                        Property and Political Theory, esp ch 1

WT Murphy &

Simon Roberts                        Understanding Property Law (3rd ed, 1998) ch 1

James Tully                        Strange Multiplicity.


C. Extinguishment of Native Title

According to the explanation given in Mabo, native title will survive for so long as the Crown does not convert its radical title into full ownership, or plenum dominium. At that point, native title is said to be extinguished:

The strength of native title is that it is enforceable by the ordinary courts. Its weakness is that it is not an estate held from the Crown nor is it protected by the common law as Crown tenures are protected against impairment by subsequent Crown grant. Native title is liable to be extinguished by laws enacted by, or with the authority of, the legislature or by the act of the executive in exercise of powers conferred upon it (Brennan J, in Mabo No 2).

The concept of extinguishment has been considered for some time in other jurisdictions. In Canada, for example, the question whether native title has been extinguished is addressed by asking whether the particular legislative act was one which sought to establish permanent adverse dominion. This test goes some way towards recognising the continuing existence of indigenous cultures, and it enables some sort of compromise to be reached between the objectives of government and the interests of indigenous peoples. In Australia, the question whether extinguishment has occurred will depend on whether the Crown has created property rights which are `inconsistent’ with the particular native title interests which exist in respect of a particular area of land. Since that test was first articulated – in the case of Wik & Thayorre Peoples v Queensland – the question of inconsistency has been debated in a number of legal decisions. Recently, the High Court of Australia has suggested that the question of extinguishment has to be addressed through the statutory framework of the Native Title Act 1993 and the Native Title (Amendment) Act 1998. Nevertheless, the tests formulated in the key decisions of Wik, Fejo and Ward will still inform the approach taken by judges.

1 Intention to extinguish

The starting point is the proposition that extinguishment will take place wherever the Crown (in one of its many personae) intended to become the full owner of the land. But as Kirby J makes plain in Wik, the question of intention is complicated because for centuries the agents of the Crown had no idea that there was such a thing as native title:

There is an inescapable element of artificiality, in looking back over Australian legal history, which developed upon a particular hypothesis about Aboriginal legal rights, and endeavouring to reinterpret that history with the knowledge afforded by Mabo [No 2]. But it is important to understand that the decision in Mabo [No 2] was not a legislative but a judicial act. It did not declare that thenceforth native title would be recognised. It held that native title had always existed. It had survived the advent of the sovereignty of the Crown in Australia. It was recognised by the common law. It would be enforced unless clearly extinguished. Thus the search must now be conducted to find indications of extinguishment. It is a search conducted at a disadvantage because it relies upon legal materials written in a completely different legal environment of contrary understandings and beliefs. One of the founders of the Australian Constitution, Alfred Deakin, stated that the judicial method enabled "the past to join the future, without undue collision and strife in the present". In this case the present must revisit the past to produce a result, wholly unexpected at the time, which will not cause undue collision and strife in future.

This point is amplified by Gummow J in the same case:

In this context, "intention" does not refer to any particular state of mind of the legislators, who may not have adverted to the rights and interests of the indigenous inhabitants. Moreover, statute law may be the result of a compromise between contending factions and interest groups and of accommodations between and within political organisations which are not made public and cannot readily be made apparent to a court. To speak here of "intention" will seldom assist and may impede the understanding of the effect of the legislation in question, unless it be kept in mind that what is involved is the "intention" manifested by the legislation. As Holmes put it, "[w]e do not inquire what the legislature meant; we ask only what the statute means". It will be necessary later in these reasons to consider the particular criteria by which the manifestation of legislative intention is to be assessed in this case.

All of this means that in determining intention, the courts ask what is the legal effect of a given proprietary grant. Usually, this involves determining what the Crown gave (eg fee simple, lease) and what the legal effect of such a grant is within the regime of property law. What kind of rights does the owner of a fee simple acquire, and what room (if any) do those rights leave for native title rights? These rather limited inquiries are the means by which courts in Australia address questions which arise from the politics of cultural difference.

2 The peculiarities of Australia 

In addressing the question of intention, it is important to mark the differences between Australia and England. Note the following observations, made by Gummow J in Wik:

Traditional concepts of English land law, although radically affected in their country of origin by the Law of Property Act 1925 (UK), may still exert in this country a fascination beyond their utility in instruction for the task at hand. So much became apparent as submissions were developed on the hearing of these appeals. The task at hand involves an appreciation of the significance of the unique developments, not only in the common law, but also in statute, which mark the law of real property in Australia, with particular reference to Queensland. I have referred above to some of these developments. There also is the need to adjust ingrained habits of thought and understanding to what, since 1992, must be accepted as the common law of Australia.

What was different about Australia? Or, more precisely, what was distinctive about land use in Australia, and why should those differences affect the interpretation or effect of common law property rights?

3 Interpreting property rights: general principles 

A case concerning hunting and fishing rights – Yanner v Eaton {1999] HCA 53 (7 October 1999) – gives some indication of the problems which arise in determining what kind of ownership is held by the Crown. The case suggests that what is involved is something more complicated than radical title/plenum dominium or sovereignty/property. Yanner concerned a statute which stated that `All fauna, save fauna taken or kept otherwise than in contravention of this Act during an open season with respect to that fauna, is the property of the Crown and under the control of the Fauna Authority’. How was the phrase `property of the Crown’ to be interpreted?  More specifically, did the vesting of property in the Crown automatically extinguish any native title interests in fauna (or, in this case, crocodiles)? In addressing these questions, the High Court cited Roscoe Pound:

It should be said, however, that while in form our courts and legislatures seem thus to have reduced everything but the air and the high seas to ownership, in fact the so-called state ownership of res communes and res nullius is only a sort of guardianship for social purposes. It is imperium, not dominium. The state as a corporation does not own a river as it owns the furniture in the state house. It does not own wild game as it owns the cash in the vaults of the treasury. What is meant is that conservation of important social resources requires regulation of the use of res communes to eliminate friction and prevent waste, and requires limitation of the times when, places where, and persons by whom res nullius may be acquired in order to prevent their extermination. Our modern way of putting it is only an incident of the nineteenth-century dogma that everything must be owned.

The court also showed some interesting flexibility in its approach to the definition of property. But perhaps Yanner was a misleading case, precisely because it did not concern one of the etablished common law categories of property right. Later cases have focused on the effect of particular kinds of grant, notably the fee simple and the lease.    

4 The effect of a fee simple grant 

A fee simple is assumed to extinguish automatically. In deciding the case of Fejo v Northern Territory, a majority in the High Court adopted the definition of Isaacs J in the old case of Cmwth v NSW:

In the language of the English law, the word fee signifies an estate of inheritance as distinguished from a less estate ... A fee simple is the most extensive in quantum, and the most absolute in respect to the rights which it confers, of all estates known to the law. It confers, and since the beginning of legal history it always has conferred, the lawful right to exercise over, upon, and in respect to, the land, every act of ownership which can enter into the imagination.

Notice how the court emphasises the idea of ownership as a kind of private sovereignty. The reality, not only in Australia, but here, is that any interest in land comes into being and is transferred within a dense network of regulatory norms and private law crieria such as planning restrictions, restrictive covenants, and credit regulations. Logically, one could just as well say that the fee simple is a form of interest that is always shaped by and subject to these various conditions. But in Fejo and subsequent cases the fee simple, irrespective of how bounded and constrained it might be by various kinds of regulatory legislation, is understood in terms of some primary exclusivity. Why sanctify the fee simple in this way? Perhaps, as Kirby J suggests in Wik, responding to the argument that if the actual situation on the ground was such as to allow co-existence, then even fee simple would not extinguish native title, certainty is the most important consideration:

This cannot be. It would introduce a dangerous uncertainty in the entitlements to land of all people in Australia to introduce such a principle. The answer is to be found in the character of the legal rights, not in the manner of their exercise.

In Fejo, the majority argued in similar terms:

In every society, rights in land which afford an enforceable entitlement to exclusive possession are basic to social peace and order as well as to economic investment and prosperity.

5 The effect of the grant of a lease

Much of the discussion in Wik and Ward turns on the legal distinction between two different kinds of contract for the use of land. In English law, there is a vital disticntion between a lease, which creates a right of possession, and a licence, which (except in rare circumstances) creates only a personal right of occupation. In the 1980s and 1990s, that distinction became important in English law because landlords tried to avoid rent control by creating licences rather than tenancies. The hallmark of the lease was said to be the intention to grant exclusive possession. What is exclusive possession and how is it interpreted in the English cases? How might that criterion apply to pastoral leases? Do pastoral leases grant exclusive possession?

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The terms of one of the pastoral leases in Wik were as follows:

The Crown does DEMISE AND LEASE unto the said [lessee] (hereinafter with their Successors in title designated 'the Lessee') and their lawful assigns, ALL THAT portion of Land situated in [name of district] ... to hold unto the Lessee and their lawful assigns, for pastoral purposes only, for and during the term of [number of years] ... subject to the conditions and provisoes in Part III, Division I of the said Act, and to all other rights, powers, privileges, terms, conditions, provisions, exceptions, restrictions, reservations, ...

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