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In Re Estate of Fenimore

Delaware Court of Chancery
1999 WL 959204 (1999)


On November 6, 1989, Audrey Serge (plaintiff) entered into a written agreement with her brother, Donald Fenimore (defendant), in which Serge advanced $12,500 to Fenimore to conduct the business of buying and selling motor vehicles. Under the agreement, Serge and Fenimore agreed to share in the profits from the sales of the vehicles. Fenimore became insolvent, and creditors referred to as Villabona (plaintiff) obtained a judgment against Fenimore for $32,000. Fenimore had recently inherited $20,000 of property. Villabona and Serge filed suit, seeking to recover the $20,000 as creditors of Fenimore. Villabona argued that the 1989 agreement between Serge and Fenimore was a partnership rather than a loan and that, therefore, Villabona had priority status over Serge as a creditor.

Rule of Law


Holding and Reasoning (Chandler, J.)

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