Essay Question 1 (50 minutes estimated time).

Marge lived in the city of Springfield in the state of Old York. She had two adult children, Lisa and Bart. Marge was homebound because of various illnesses, although she was mentally competent. She had an argument with Lisa in the 1970s, when Lisa was in her twenties, and announced that she was "disowning" Lisa. From that time forward, she never saw or spoke to Lisa again. Bart lived with Marge and took care of most of her needs, including management of her financial affairs.

Lisa knew that Marge owned a vacant parcel of land in Springfield that was zoned for commercial use. After Lisa completed law school and became a member of the bar, she needed an office in which to operate a law office. In early 1992 she asked Bart if he would convince Marge to sell the vacant land to Lisa. However, Bart never raised this matter with Marge, as he was certain that his mother would refuse. Instead, he prepared a deed purporting to transfer the land to Lisa and signed Marge's name as grantor. Marge knew nothing of this deed. Bart gave the deed to Lisa, telling her that Marge was making a gift to her of the land.

Lisa believed that the signature on the deed was genuine, and that she now owned the land. She wrote a thank-you note to Marge (which Bart intercepted and destroyed). She then employed a contractor and built a small office building on the land. While excavating for the construction, the contractor discovered in the soil a glass jar that was filled with U.S. currency and coins from the Nineteenth Century. These items were worth over $100,000. The contractor turned them over to Lisa, who sold them for that amount to a dealer. She did not mention the found money to Bart or Marge. She moved into the new building in December 1992, hung out her "shingle," and has been practicing law there continuously ever since.

Marge died in December 1996. She never learned of Lisa's possession of the land. Her valid will left all of her property to Bart.

On December 10, 2001 Bart happened to visit Lisa's office. He noticed an architect's model on Lisa's desk and asked what it represented. Lisa explained that she had outgrown her present building and was going to expand it, doubling its size. Bart decided to tell the truth; he admitted to Lisa for the first time that the deed purporting to be signed by Marge was forged. Lisa, deciding that it was also time for her to tell the truth, told Bart for the first time about the money she had found on the land.

Bart became extremely angry that Lisa had concealed the money from him. He demanded that Lisa pay him $100,000. When she refused, he told her that he was going to sue her and force her to move off the land, and to recover the $100,000. He said that both the land and the money now belonged to him as a result of Marge's will.

The land on which Lisa built her office has a present market value of $150,000, and her building adds $200,000 in additional value to the real estate.

Please discuss the claims and defenses that Lisa and Bart have against each other as a result of these facts. If you need additional facts in order to evaluate the question, please identify that information and explain how it would influence your analysis.

The statute of limitations for an action to recover possession of land in Old York is ten years, and is shortened to seven years if the person in possession has color of title to the land.

Essay Question 2 (50 minutes estimated time)

Olga Olsen had arrived from the Old County penniless, but through shrewd business dealings had amassed a portfolio of valuable real estate by the time she died in late 1998. Her will contained the following clause:

I leave Olsen Manor, my five-star hotel in the City of Columbia, State of Bliss, to my two nieces, Amy and Betty Olsen, as joint tenants, remainder to the survivor.

Amy, who was quite interested in the hotel business, moved to Columbia in early 1999 and took over active management of Olsen Manor. Betty lived out of state and took no active role in the business. The hotel has been highly profitable, generating revenues from room receipts, restaurants, banquet facilities, and parking. Amy has collected net profits from the hotel in excess of $1 million since she took over management, but has never sent Betty any of that money.

In 2000 Perry Plaintiff, a ten-year-old child, was in the hotel attending a reception that featured a large ice sculpture of a swan as a centerpiece. Perry stuck his tongue on the swan and it was frozen there. Perry (through a guardian ad litem) sued Amy in state court in Columbia for his injuries; Betty was not a party to the action. In July 2001 Perry obtained a judgment against Amy for $100,000, but has not yet collected that judgment. A statute of the State of Bliss provides that a judgment imposes a lien on the real property of the defendant in the county where the judgment is docketed.

The hotel's legal problems were multiplied in August 2001. A guest of the hotel, Ann Tique, brought a small zippered canvas satchel to the front desk and asked that it be held there for safekeeping for an hour while Tique worked out in the hotel's exercise room. The desk clerk did not inquire as to the contents of the satchel or look inside it, but placed it on the credenza behind the front desk after tagging it with Tique's name. It was not placed in the hotel's safe because at the time the combination lock on the safe was not in working order. When Tique returned to claim the satchel, it was missing and its whereabouts remain unknown. Tique has advised Amy Olsen that the stachel contained two rare Tibetan bells worth $500,000, and has demanded reimbursement in that amount. Thus far Amy has not paid and Tique has not filed any litigation.

Amy was understandably tired of dealing with the hotel's problems, and she decided that it would be better off with professional management. Effective October 1, 2001, she leased her interest in the property to the Marriott Corporation, which agreed to pay her rent of $25,000 per month. Betty had no involvement in this lease. Marriott took over the management of the property, and thus far has paid three monthly installments of rent totaling $75,000.

Last week Betty Olsen died in a traffic accident in another city. Her will leaves all her property to her son Brad, who is also her executor. You have been contacted by Amy Olsen, who has asked you to prepare an opinion letter for her advising (1) who owns interests in Olsen Manor, and (2) to what extent Amy may be liable for claims by Betty Olson's estate or by Ann Tique. Please prepare a response to this request, fully discussing all relevant legal issues.