Final answer:
A Quiet Title Action is the court process to establish clear property ownership when the title is unclear or disputed, which is crucial for legally transferring property and resolving property rights issues.
Step-by-step explanation:
The court action used to establish property ownership when title is clouded is a Quiet Title Action. This legal process clears any outstanding claims or title defects on a property, which is essential for a farmer looking to sell land to developers. Accurate property titles without claims or disputes are critical for such transactions, and a Quiet Title Action can resolve any uncertainties or competing claims that might hinder the sale of property, especially where metes and bounds create irregular property divisions.
Coase's theory on property rights further highlights the importance of defined legal ownership to prevent disputes and to resolve existing ones efficiently. A clear property right empowers the owner to protect their interests and seek solutions to potential conflicts, as evidenced by the case where either a farmer or a railroad company would bear the responsibility to avoid damages caused by fire sparked by train operations.
The seventh amendment also emphasizes the significance of legal proceedings in resolving property ownership and value conflicts through a jury or bench trial, ensuring justice based on evidence and the law.