Stone v. Jetmar Properties, LLC
Court of Appeals of Minnesota
733 N.W.2d 480 (2007)
Keith Hammond (defendant) drafted and signed articles of organization for Jetmar Properties, LLC (Jetmar) (defendant), but failed to file the articles with the secretary of state. Acting as president of Jetmar, Hammond purchased commercial property from Selwin Ortega (defendant). Hammond financed the purchase with a $200,000 loan from Ortega. Hammond then met with Dale Stone (plaintiff), a retiree, and convinced Stone to quitclaim a duplex property to Jetmar, which Jetmar would use to secure financing for a condominium development. In exchange, Hammond promised Stone an interest in the condominium development. Hammond also told Stone that Hammond would deed the duplex property back to Stone, and that Stone could continue to collect rent. Stone quitclaimed the property to Jetmar, and Hammond mortgaged the duplex to Ortega in exchange for an extension on the $200,000 loan. Hammond did not repay the loan to Ortega or deed the property back to Stone. Ortega foreclosed on the duplex property. Hammond subsequently filed Jetmar’s articles of organization and received a certificate of organization. Stone filed suit against Jetmar, Hammond, and Ortega, alleging that Hammond and Jetmar defrauded Stone. Stone argued that Jetmar did not exist at the time of the quitclaim deed on the duplex, and therefore Jetmar was incapable of taking title. Therefore, Stone argued the quitclaim deed was void, that Jetmar never acquired the property, and that Ortega’s mortgage and foreclosure were also void. The court awarded Stone damages and title to the duplex property. Ortega appealed.
Rule of Law
Holding and Reasoning (Lansing, J.)
What to do next…
Unlock this case brief with a free (no-commitment) trial membership of Quimbee.
You’ll be in good company: Quimbee is one of the most widely used and trusted sites for law students, serving more than 97,000 law students since 2011. Some law schools—such as Yale, Vanderbilt, Berkeley, and the University of Illinois—even subscribe directly to Quimbee for all their law students. Read our student testimonials.
Learn more about Quimbee’s unique (and proven) approach to achieving great grades at law school.
Quimbee is a company hell-bent on one thing: helping you get an “A” in every course you take in law school, so you can graduate at the top of your class and get a high-paying law job. We’re not just a study aid for law students; we’re the study aid for law students. Read more about Quimbee.
Here's why 174,000 law students have relied on our case briefs:
- Written by law professors and practitioners, not other law students. 14,000 briefs, keyed to 188 casebooks. Top-notch customer support.
- The right amount of information, includes the facts, issues, rule of law, holding and reasoning, and any concurrences and dissents.
- Access in your classes, works on your mobile and tablet. Massive library of related video lessons and high quality multiple-choice questions.
- Easy to use, uniform format for every case brief. Written in plain English, not in legalese. Our briefs summarize and simplify; they don’t just repeat the court’s language.