1: Jackie suffered from a serious knee injury in her last years and had asked her sister,...
Question:
1: Jackie suffered from a serious knee injury in her last years and had asked her sister, Susan, to live in her home, rent-free, and assist her with daily errands. Susan agreed to quit her job as a bank teller to move in with Jackie and help out. One year after Susan moved in, Jackie wrote a note saying, "Thanks for being such a sweet and loving sister. I want to pay for all your good work. I will give the two antique sports cars I have parked in my garage." Several weeks later Jackie died. Susan is suing Jackie's estate for the two antique cars. Should the estate give Susan the two cars? Why or why not?
2: Nathan has long been a supporter of Apex Law School and had told the Dean that he was going to give the law school $15,000 in his will. In his last conversation with the Dean, Nathan mentioned that he wanted to donate the money towards building a new wing of the library. The Dean then told Nathan that the Law School really needed a new fountain in the courtyard and that the School would be willing to name the new fountain in his honor if he could donate $25,000 instead. After hearing this, Nathan told the Dean, "I have decided to increase the amount from $15,000 to $25,000."
Since Nathan's death, the law school has decided not to build a new fountain given that construction costs would be far higher than anyone had anticipated. The ground where the fountain was going to be built contains large algae and that would make any construction difficult.
The law school is suing Nathan's estate for $25,000. Should the estate pay the law school $25,000? Why or why not?
3. Mary Mawlins has just finished a medical school residency in dermatology and she has been looking for full time employment both in the Chicago and Atlanta areas. She has been quite lucky. Even though she attended medical school in Emory and completed her residency in Atlanta, she has been a competitive candidate in the Chicago market.
She has received offers from both St Joseph's Hospital on the north side of Chicago and Evanston Hospital, located in Evanston (a north suburb of Chicago). She has also received an offer from the Atlanta Medical Center in Atlanta, Georgia.
On October 8, 2019, Mary interviewed with Dr. Getty at St Joseph's Hospital. During the interview, she let him know that she had already received an offer from Evanston Hospital, and that they had also made a two year commitment to her (at a starting salary of $140,000 for the first year and $150,000 for the second year). She also mentioned that she had received an offer from the Atlanta Medical Center in Atlanta, Georgia which made the same compensation commitment as Evanston Hospital. She also said although she would very much like to stay in Atlanta (where her siblings and parents lived); she found the generous offers from the two Chicago area hospitals very enticing.
Two days later, Dr. Getty called Mary to offer her a job at St Joseph's Hospital. Dr. Getty explained the firm's two year commitment, the compensation arrangements ($150,000 for the first year, $175,000 for the second year). But there also other terms and conditions, including the requirement that she commit not to seek work elsewhere in Illinois as a dermatologist during the two year period while she was under contract with St Joseph's. He also gave her a copy of the contract, which he said should be returned within two weeks if she decides to accept their offer.
After evaluating her options, Mary called Dr. Getty on October 12 to accept the offer from St Joseph's. Later that afternoon, she signed and faxed a copy of the contract to the hospital. She also called Evanston Hospital and Atlanta Medical Center to let them know she would not be accepting their offers. But she never received her copy of the contract signed by the hospital.
Mary started work at St Joseph's Hospital on November 15, 2019. But moving to Chicago was quite an undertaking for her. Transporting her furniture, family, and their pet bull terrier from Atlanta took three days and cost over $17,000. She performed very well at St Joseph's, maintaining an A- patient rating while she was there. Then seven months into her job, Dr. Getty stopped by her office and announced that her position will be terminated in two months. Mary was distraught. She insisted that St Joseph's had a commitment to her for two years. Dr. Getty mentioned that unexpected cuts by the city in medical care had made it unlikely that the hospital could meet its financial commitments and so the hospital administration had to make hard choices.
Assume you are a lawyer for Mary Mawlins. Advise her on her options.
South Western Federal Taxation 2015
ISBN: 9781305310810
38th Edition
Authors: William H. Hoffman, William A. Raabe, David M. Maloney, James C. Young