> The new owner built on what was technically someone else's land, but later the "true" owner lost in court, and the owner who built on it was given ownership rights, and I don't believe was required to compensate the "true" owner.

Sounds like a case of adverse possession, which is a special feature of real property law not shared with personal property.

So, while that story is plausible, its not something you should generalize to non-real-estate law.