Massachusetts  |  Civil Litigation

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1/19/08, 6:29 pm

Legal Question


Theory of Quantum Meruit, Constructive Trust, both, neither?

Hello. Here goes. An unmarried couple enters an oral agreement to purchase and restore a property. Down payment is split evenly. Working capital is provided by one partner, who is the sole title holder. The other partner invests about $200,000 in sweat equity throughout the course of a full gut-out and remodel. The arrangement is to split the profit equally upon sale. Immediately after completion, couple breaks up and labor partner never resides in home. Two years go by, title holder still resides on property and informs labor partner that the agreement will no longer be honored. Title holder claims there is no profit in a $700+ home purchased for less than $300K, after years of mortgage payments and utilities are recouped. Is labor partner just, in law, to the recovery of damages under quantum meruit? Can labor partner be awarded a constructive trust? Can title holder be reimbursed living expenses from profit? Sticky situation.


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