29. The Buyout #2
“We have also jointly obtained and filed as Exhibit A a certified appraisal of the fair market value of the combined properties,” Ramirez went on. “That appraisal values the whole at seven hundred fifty thousand dollars.”
Another document changed hands. “Exhibit A,” the clerk intoned.
“Under Florida law governing partition and co-tenancy,” Ramirez said, slipping into the rhythm she’d no doubt practiced, “a co-tenant in sole possession who has made necessary expenditures and improvements which enhance the value of the property is entitled to equitable credits or setoffs when the property is partitioned or otherwise adjusted. Case law, specifically Condrey v. Condrey, 92 So. 2d 423, and its progeny, recognizes that it would be unjust to allow an absentee co-owner to reap the benefit of those expenditures without contribution.”
Judge Collins nodded again, more slowly this time. “Yes. I’m familiar with Condrey.”
“Applying those principles here,” Ramirez said, “and after discussions with opposing counsel, the parties have agreed that Ms. Hart’s capital improvements and carrying costs should be credited against Mr. Bailey’s claimed twenty-five percent equity interest. The parties have further agreed, as a compromise, that Ms. Hart and Ms. Cruz will pay Mr. Bailey a lump sum of one hundred twenty thousand dollars in exchange for his executing a quitclaim deed conveying any and all right, title, and interest he holds in the properties to Ms. Hart, who will also hold in trust for Ms. Cruz’s minority share.
The payment will fully satisfy his interest, and the partition action will be dismissed with prejudice. ”
The judge looked over at Decker. “Mr. Decker, is that an accurate summary of your client’s understanding?”
“Yes, Your Honor,” Decker said. “We concur with counsel’s recitation of the terms.”
“And you, Mr. Bailey?” Judge Collins asked, turning her gaze to Troy.
“Do you understand that if I approve this, you will receive a one-time payment of one hundred twenty thousand dollars, and you will permanently relinquish any ownership interest in the house and the bakery? No future claims. No percentage. You’re done. ”
Troy shifted in his seat but managed his trademark easy smile. “Yes, Your Honor. I understand. I’m satisfied with the arrangement.”
Emmie made a noise under her breath that was somewhere between a scoff and a growl. Jenna placed her hand lightly over her niece’s on the table to keep her from saying whatever came next.
“All right,” the judge said. “Before I rule, I want to briefly hear from Ms. Hart on the record. Ms. Hart, would you please come forward and be sworn?”
Jenna’s stomach plummeted. She stood, wiping her palms discreetly on her skirt, and walked to the witness stand. The bailiff met her there, Bible in hand.
“Raise your right hand,” he said. “Do you swear or affirm that the testimony you are about to give will be the truth, the whole truth, and nothing but the truth?”
“I do,” Jenna said.
She sat. The wooden seat was harder than she’d expected. The microphone loomed close enough that she could hear her own breathing.
“State your name for the record, please,” Judge Collins said.
“Jenna Marie Hart,” she replied.
“Ms. Hart, you’ve heard your attorney outline the settlement terms. In your own words, can you tell me why you’re agreeing to this buyout rather than proceeding with a traditional partition sale?”
Jenna glanced at Ramirez, who gave her the smallest nod.
“Because . . .” Jenna took a breath. “Because I don’t want to lose my home, Your Honor.
Or my sister’s bakery. My grandmother opened that bakery, and my sister and I grew up working in it.
My sister, Grace, took over when she was ready and ran it by herself.
My niece and I live there and work there.
A forced sale would mean selling those properties on the open market to whoever had the money.
We’d be uprooted, and the business would likely change hands.
It wouldn’t be ours anymore. This buyout lets Mr. Bailey receive money for his share, but it lets us keep the places that are . . . our life.”
“Are you satisfied that the amount, one hundred twenty thousand dollars, is fair, given the appraisal and the credits we’ve discussed?”
Jenna swallowed. Fair.
Nothing about writing a six-figure check to the man who had broken her sister felt fair. But that wasn’t the question the law asked.
“Yes, Your Honor,” she said. “It . . . it’s more than I’d like to pay, but it’s less than what we think a court would award if we had to go through a contested partition. It’s an amount I can raise with the help of my family and community without losing the house and bakery. It’s . . . survivable.”
“And you have the ability to fund this payment?” Judge Collins asked. “You’re not mortgaging beyond your means?”
“We’ve raised a substantial portion through a community fundraiser,” Jenna said, a small flicker of pride piercing the anxiety.
“And I have personal savings and a business line of credit unassociated with the contested business property. The numbers have been provided to the court in my affidavit. It will be tight, but it won’t sink us. ”
“And you understand that once I sign this order, this is final,” the judge said. “You cannot come back in six months and say you’ve changed your mind, that you now think Mr. Bailey should have gotten less.”
“Yes, Your Honor, I understand.”
“Do you feel that anyone has pressured you into this agreement?” the judge asked. “Your attorney? Mr. Bailey? Anyone else?”
“No,” Jenna said firmly. “This was my decision. Ms. Ramirez explained all my options. I chose this.”
Judge Collins regarded her for another moment, then nodded. “Thank you, Ms. Hart,” she said. “You may step down.”
Jenna’s legs felt boneless as she returned to the defense table. Emmie reached over and squeezed her hand.
“You did good,” she whispered under her breath.
Judge Collins shuffled papers, then addressed the room.
“All right,” she said. “Having reviewed the pleadings, the parties’ memoranda, the certified appraisal, the documentation of improvements and carrying costs, and having heard from counsel and Ms. Hart, the court finds that the proposed buyout is equitable and in the best interests of all parties, including the minor, Ms. Cruz, whose interests are adequately represented by Ms. Hart. ”
Jenna held her breath.
“In recognition of Ms. Hart’s substantial contributions to the maintenance and enhancement of the property’s value, and pursuant to the court’s equitable powers under Florida partition law and applicable case law including Condrey, the court approves the stipulated settlement,” Judge Collins continued.
“The plaintiff’s complaint for partition by sale is hereby resolved as follows: within thirty days, respondents shall pay to plaintiff the sum of one hundred twenty thousand dollars.
Upon receipt of said funds, plaintiff shall execute a quitclaim deed conveying any and all right, title, and interest in the subject properties to Ms. Hart, individually and as trustee for Ms. Cruz’s minority interest.”
Decker was already nodding, jotting something down.
“Upon filing of the fully executed deed, the clerk is directed to enter final judgment dismissing this partition action with prejudice and quieting title in favor of Ms. Hart and Ms. Cruz as sole owners,” the judge said.
“In plain language, Mr. Bailey, once you are paid and sign that deed, you are out. You have no further ownership claims to the house or the bakery.”
“Understood, Your Honor,” Troy said.
“And if Mr. Bailey fails or refuses to execute the deed after payment is tendered,” Judge Collins added, “the court will, upon motion, authorize the clerk to execute on his behalf. I do not anticipate that will be necessary, Mr. Bailey, but I like to be clear.”
Troy’s smile tightened. “It won’t be, Judge. I’m a man of my word.”
Emmie muttered something under her breath about that being a first, but the gavel was already coming down.