Notes on problem at pages 215-216 of casebook

I rushed through my analysis of this problem in class today. For your convenience, I am providing my notes on the problem:


D&M, pp. 215-16. Problem
1990 Albert, Bertha purchased, $50K each, 15K mtg, 3K prop-tax, 1K ins
Addition + swimming pool plans
Bertha leaves July 1993, refuses to help pay for completing pool
Albert cuts 5 trees: $40K profit
Sells clay $5,000
Corrine begins paying $500/mo Oct ’93; stops Jan ‘94
Worked vineyard, doubled size of hour
$500K insurance proceeds

1. What further info
• Value w/o improvements
• More about Bertha’s departure
• Portion of trees and clay removed and value remaining

2. What claims by Bertha
• Ouster
• Accounting-her share of sale of trees, clay, rend and rental value from Corrine
• Partition by sale=value of prop with additions and pool and working vineyard, share in ins proceeds
• Offset any contribution by imputed value of his occupancy

3. What answers by Albert
• No ouster; she left on her own
• Owes net rent from Bertha not rental value
• Share of value of trees and clay, not profits bcs resulted from skill as salesman
• Share of value of land not improvements which he made after she left
• No part of ins proceeds because he paid premiums
• Counterclaim for loan payments, insurance, taxes he paid

4. How resolve
• Probably no outster, at least until Corrine
• Bertha owes contribution for upkeep, including insurance and repairs, maybe offset by value of his occupancy
• Owes net rents, but not value of Corrine’s occupancy; use including letting friends stay there
• Accounting for net profits for trees, clay; no special skills
• Value of land w/o improvements
• Profits from winery belong to Albert, due to his labor to turn winery around