John C. Ponder v. David R. Willey ( 2020 )


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  •                                 COURT OF CHANCERY
    OF THE
    STATE OF DELAWARE
    PATRICIA W. GRIFFIN                                                     CHANCERY COURTHOUSE
    MASTER IN CHANCERY                                                           34 The Circle
    GEORGETOWN, DELAWARE 19947
    Final Report:      November 17, 2020
    Date Submitted:    October 7, 2020
    Via File & ServeXpress
    James P. Sharp, Esquire
    Moore & Rutt, P.A.
    122 West Market Street
    P.O. Box 554
    Georgetown, Delaware 19947
    Via U.S. Mail
    David R. Willey
    28388 Evans Lane
    Unit 1106
    Dagsboro, DE 19939
    Re:      John C. Ponder v. David R. Willey
    C.A. No. 2019-0349 PWG
    Dear Counsel and Mr. Willey:
    The last stage of a partition proceeding involves the division of the proceeds
    from the sale of the partitioned property. This dispute addresses whether the
    proceeds should be divided equally between two brothers who purchased property
    as tenants in common, or whether one of the brothers is entitled to contributions for
    John C. Ponder v. David R. Willey
    C.A. No. 2019-0349-PWG
    November 17, 2020
    payments he made related to the Property, as well as offsets against the other
    brother’s share of the proceeds. I recommend the Court deny the contribution and
    offset claims, except for the offset related to property taxes paid when the property
    was sold. This is my final report.
    I.     Background
    On November 29, 2016, Petitioner John C. Ponder (“John”) and his
    brother, Respondent David R. Willey (“David”), purchased real property
    (“Property”) located at 34534 Hitch Pond Road, Laurel, Delaware, as tenants in
    common, from their brother, Robert Willey (“Robert”).1 The Property consisted of
    a three-bedroom, two-bathroom double-wide trailer located on approximately 1.6
    acres.2 John wanted the Property as a home for their mother to live in.3 The
    parties agreed that the arrangement was for David to also reside in the home. 4
    Their mother relocated to the Property shortly after its purchase and remained in
    the home until she passed away on or about October 31, 2018. 5 In addition, their
    mother’s sister moved into the home around the end of July of 2018 and stayed in
    1
    Docket Item (“D.I.”) 1, Ex. A. I use first names in pursuit of clarity and intend no
    familiarity or disrespect.
    2
    Trial Tr. 28:22-24; Trial Tr. 23:3-4.
    3
    D.I. 1, ¶ 7.
    4
    Trial Tr. 80:19-21; Trial Tr. 90:22-24.
    5
    Trial Tr. 36:16-37:5.
    2
    John C. Ponder v. David R. Willey
    C.A. No. 2019-0349-PWG
    November 17, 2020
    the home until she died at the end of January of 2019.6 David resided at the
    Property from the time of purchase until after the partition sale.
    On May 13, 2019, John filed a petition (“Petition”) to partition the Property
    and for contributions and offsets affecting the division of the partition sale
    proceeds between him and David.7 Following a hearing on the Petition, a partition
    sale by public auction was ordered on July 3, 2019, and the Property was sold on
    October 1, 2019 for $80,000.00.8         With no objections having been filed, the
    Trustee’s return of sale was confirmed by the Court on October 30, 2019. 9
    John filed his petition for decree and order of distribution on November 18,
    2010, asking that his share be increased by his $40,000.00 purchase payment,
    $16,150.00 for one-half of the fair rental value of the Property from the time of its
    purchase, $1,566.55 for one-half of the unpaid real property taxes, $2,353.44 for
    improvements he made to the Property, $19,015.00 for one-half of the waste
    committed by David on the Property, and attorney’s fees and costs.10 A decree for
    distribution hearing was held, using Zoom, on October 7, 2020. 11
    6
    Trial Tr. 108:12-16.
    7
    D.I. 1.
    8
    D.I. 10; D.I. 11, ¶¶ 5, 6.
    9
    D.I. 14.
    10
    D.I. 15, ¶ 30.
    11
    The hearing was originally scheduled for March 16, 2020, and was rescheduled, due to
    the pandemic.
    3
    John C. Ponder v. David R. Willey
    C.A. No. 2019-0349-PWG
    November 17, 2020
    II.     Analysis
    This is my decision regarding the distribution of the partition sale proceeds.
    $67,692.68 in sale proceeds remains to be distributed, after partition sale costs of
    $12,307.32 are deducted from the $80,000.00 sale price. 12            John’s claims for
    offsetting liabilities or contributions related to the Property are addressed in turn
    below. The party claiming contribution for repairs, improvements, taxes or other
    costs has the burden of proof. 13
    A. Reimbursement of John’s purchase costs
    John seeks to be reimbursed for his $40,000.00 payment to purchase the
    Property, alleging that David made no contribution to the purchase price.14
    However, pursuant to the deed dated November 29, 2016, John and David each
    own 50% of the property. 15          The evidence shows that David did contribute
    financially towards the purchase of the Property through the payment arrangement
    he made with Robert. 16 Further, the agreement between John and David regarding
    12
    D.I. 12, Ex. E.
    13
    Cf. Estate of Weber v. Weber, 
    2014 WL 589714
    , at *6 (Del. Ch. Feb. 17, 2014).
    14
    D.I. 15, ¶¶ 9, 10.
    15
    D.I. 1, Ex. A.
    16
    Robert testified that he believed, based upon statements from a realtor, the Property
    was worth $80,000.00 at the time he sold it to John and David. Trial Tr. 87:19-20. And
    that the parties’ agreement regarding the purchase of the Property was that John and
    David would be co-owners, with John paying $40,000.00 to Robert, and David paying
    another $40,000.00 to Robert in installments, since he had recently lost his job. Trial Tr.
    89:10-15. John paid $40,000.00 up front. D.I. 1, Ex. B. Robert testified that there was
    4
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    C.A. No. 2019-0349-PWG
    November 17, 2020
    the Property’s purchase included other contributions from David, such as
    performing maintenance of the Property. 17 David performed some aspects of the
    agreement, including cutting the grass, making repairs and living in the home with
    their mother until her death.18 And, even assuming arguendo David breached the
    agreement, there is no evidence that the parties agreed John would be reimbursed
    for his $40,000.00 payment for a breach, or that reimbursing John for his payment
    is an appropriate remedy for a breach. To do so would value John’s contribution to
    the exclusion of David’s contributions under the agreement. Therefore, John is not
    entitled to be reimbursed for his $40,000.00 payment towards the purchase of the
    Property from the sale proceeds.19
    B. Claim for rental value benefit against David
    no written agreement regarding the payment arrangement in order to save the cost of
    legal services to prepare the agreement. Trial Tr. 89:22-90:19. He further testified that
    David has paid him between $200.00 and $400.00 per month, and provides handyman
    services, to pay on the debt, and still owes him about $30,000.00. Trial Tr. 97:11-98:4.
    John confirmed that he believed Robert “had some sort of arrangement with David to do
    some labor, some work.” Trial Tr. 32:3-5.
    17
    Trial Tr. 52:17-19; Trial Tr. 96:21-23. John remembers that, in addition, the agreement
    was their mother would have the master bedroom, and David would not bring his dogs
    inside the home and would pay property taxes. Trial Tr. 79:4-18. David and Robert recall
    that David’s main obligation under the agreement was to take care of their mother. Trial
    Tr. 94:7-9; Trial Tr. 114:7-8.
    18
    Trial Tr. 79:11-13.
    19
    Obligations under the agreement between David and Robert, with approximately
    $30,000.00 still due to Robert, are not addressed in this report or in this partition action.
    5
    John C. Ponder v. David R. Willey
    C.A. No. 2019-0349-PWG
    November 17, 2020
    John seeks $16,150.00 for one-half of the fair rental value of the Property
    from the time of its purchase, claiming that David ousted John by his “full and
    exclusive access” of the Property. 20       “A co-tenant living on property has no
    obligation to pay rent unless the co-tenants agreed that rent would be paid.”21
    However, if a co-tenant has exclusive possession of the property and ousts other
    co-tenants, then the rental value (representing the benefit received by the co-tenant
    having exclusive possession) may be set off against their share of the sale
    proceeds.22 In this case, there is not sufficient evidence that David had exclusive
    possession of the Property or that he ousted John. Although it is questionable
    whether John had a key to the Property, John stayed at the Property at various
    times while he and David co-owned the Property and accessed the Property when
    he visited their mother, typically once or twice a year. 23 There is no evidence John
    was excluded from accessing the Property by David. Accordingly, since no ouster
    20
    D.I. 15, ¶¶ 12, 13, 30(b).
    21
    In re Real Estate of Hunsucker, 
    2019 WL 1984242
    , at *3 (Del. Ch. May 3, 2019).
    22
    
    Id.
    23
    Trial Tr. 49:16-18. John testified that he did not have a key to the Property until April
    of 2018, when their sister got him a key. Trial Tr. 49:21-50:7. He further testified,
    however, that he didn’t recall whether he had asked for a key prior to that time and stated
    “they didn’t usually have the door locked.” Trial Tr. 50:8-13. And that he stayed at the
    home on the Property for the majority of the time he came home for their mother’s
    hospice care and that, after their mother passed, he was able to access the Property. Trial
    Tr. 77:12-20; Trial Tr. 50:21-51:11. David responded that, when he changed the locks,
    he had the locks keyed alike so there was no need to give John a new key. Trial
    Tr.113:23-114:2.
    6
    John C. Ponder v. David R. Willey
    C.A. No. 2019-0349-PWG
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    has been shown and there is no evidence David agreed to pay rent, David had no
    obligation to pay rent and no benefit from rental value is set off against him from
    the sale proceeds.24
    C. Contributions regarding property taxes
    John claims $1,566.55 should be added to his share of the sale proceeds,
    representing one-half of the unpaid real property taxes. He asserts David agreed to
    pay all of the taxes as a part of the agreement regarding the purchase of the
    Property. 25 Generally, co-tenants share the cost of taxes on the property equally,
    because those costs benefit all of the co-tenants. 26           However, an agreement
    between the co-tenants distributing the payment of property obligations between
    co-tenants can affect that conclusion. Here, John testified that: he and David had
    an agreement that David would pay property taxes on the Property; the property
    tax invoices were mailed to David; and, at one point, when John became aware that
    24
    John also argues that their mother and aunt paid rent to David while they resided at the
    Property, which was not shared with John. Trial Tr. 38:6-20. David responds that neither
    paid rent to him but acknowledges they serially paid him $200.00 per month towards
    utilities (their mother paying until her death and their aunt paying after that until her
    death). Trial Tr. 107:22-108:6. David did not share those payments with John, since they
    were for utilities, which he was responsible for. Trial Tr. 109:3-6. I find David’s
    testimony credible, especially since John testified he knew their mother “wanted to
    contribute . . . towards some of the utilities.” Trial Tr. 36:4-6.
    25
    D.I. 15, ¶ 14.
    26
    Estate of Weber, 
    2014 WL 589714
    , at *5 (“Delaware law requires cotenants to share
    equally the taxes imposed on jointly-owned property . . .”) (citations omitted); see also In
    re Real Estate of Turulski, 
    1993 WL 18767
    , at *5 (Del. Ch. Jan. 21, 1993) (co-tenant is
    reimbursed for payments on taxes because they benefitted all of the co-tenants).
    7
    John C. Ponder v. David R. Willey
    C.A. No. 2019-0349-PWG
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    taxes on the Property were delinquent, he flew back from California to take David
    to set up payment arrangements on the overdue taxes.27 John further testified
    David told him that he would make payments on the taxes – and “did pay a little
    bit on a couple different occasions,” but “the amount of taxes that were past due
    were sizeable, thousands of dollars.” 28 David responds that there is no evidence of
    any agreement regarding the taxes, although he testified that he made “three or
    four payments” on the taxes.29 I find the credible evidence shows that David
    agreed to pay property taxes while he resided at the Property, as a part of the
    purchase agreement with John. In making this finding, I rely on David’s admission
    that he repeatedly paid property taxes in the past (while John only made a small
    initial payment related to the payment arrangement for delinquent taxes established
    by David), and the tax invoice was sent to the Property (where David resided).30
    Such an obligation appears consistent with David’s other obligations under the
    agreement, which allowed him to live at the Property rent-free. 31 Accordingly,
    27
    Trial Tr. 61:11-62:7; Trial Tr. 64:3-5.
    28
    Trial Tr. 61:12-13, 21; Trial Tr. 62:13-23.
    29
    Trial Tr. 130:9-10; Trial Tr. 109:7-10.
    30
    See Trial Tr. 64:3-5; Trial Tr. 61:19-20; Trial Tr. 63:1-5; Trial Tr. 109:7-10.
    31
    John stated that it was David’s failure to pay the taxes that led him to seek the partition
    of the Property. Trial Tr. 61:6-10. He testified it was his expectation that, if David
    complied with the agreement, David “was going to live [at the Property] for the rest of
    his life,” even after their mother’s death. Trial Tr. 79:24-80:2. For a long-term
    arrangement (extending after David’s obligation to care for their mother ended), it is
    reasonable that David would be obligated to pay all of the property taxes.
    8
    John C. Ponder v. David R. Willey
    C.A. No. 2019-0349-PWG
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    John’s share of the property taxes paid by the Trustee as partition sale costs will be
    paid by David, which means that David’s one-half share of the sale proceeds will
    be reduced by $1,326.41 (one-half of the total – $2,652.82 – assessed in property
    taxes at the time of sale).32
    D. Improvements to the Property
    John seeks $2,353.44 in contributions for improvements he made to the
    Property. 33      John testified the $2,353.44 represents expenditures he made on
    materials for improvements, including widening doors and replacing carpet with
    new flooring in several rooms in the home, which were made on or around May
    through July of 2018. 34 John testified that he purchased the materials and he and
    David, along with a couple of other helpers for specific jobs, completed the work
    32
    John testified that the tax bill submitted showed $3,140.98 was due on property taxes
    as of the date of the partition sale. Trial Tr. 63:12-23; Pet’r’s Trial Ex. 8. However, there
    is no evidence that amount was actually paid in taxes. The Trustee’s return of sale shows
    the Sussex County property taxes paid as costs of the partition sale totaled $2,652.82,
    including $2,400.80 in delinquent taxes and $252.02 in taxes accrued between 7/1/19 and
    10/31/19. D.I. 12, Ex. E. The parties have the burden of providing sufficient proof that
    their claimed contributions are not speculative. See generally H & H Brand Farms, Inc. v.
    Simpler, 
    1994 WL 374308
    , at *5 (Del. Ch. June 10, 1994). Without other evidence, I
    rely on the Trustee’s return of sale as an accurate reflection of the amount of taxes paid at
    the partition sale and one-half of that amount is set off against David’s share of the sale
    proceeds.
    33
    D.I. 15, ¶ 18. John increased the request for expenditures on improvements at trial to
    $2,728.37, based upon the credit card statements entered into evidence at trial. Trial Tr.
    48:6-17; Pet’r’s Trial Ex. 4.
    34
    Trial Tr. 45:12-46:20; John’s credit card statements were highlighted to indicate
    materials related to improvements, but those statements show only that the expenditures
    9
    John C. Ponder v. David R. Willey
    C.A. No. 2019-0349-PWG
    November 17, 2020
    during that time. 35 Robert testified that, generally, when repairs were needed on
    the home, John would pay for the materials and David, with Robert’s assistance at
    times, would make the improvements.36 Both John and David testified that they
    each completed work on the home. 37
    In dividing partition sale proceeds between co-tenants, a court “may, as a
    matter of equity, take into consideration improvements by one cotenant and, ‘to the
    extent those improvements have enhanced the value of the property, the improving
    cotenant will be compensated proportionally out of the proceeds of the sale.’” 38
    Here, there is no evidence that the repairs or improvements performed by either co-
    tenant increased the market value of the Property. And, I cannot conclude that
    John’s expenditures, if determined to be for improvements, exceed the value of the
    were made at Walmart, Lowes, or Family Dollar stores in Delaware or Maryland, and not
    what items were purchased. Pet’r’s Trial Ex. 4.
    35
    Trial Tr. 46:19-47:6.
    36
    Trial Tr. 95:9-13; Trial Tr. 102:24-103:10.
    37
    John repaired holes in the wall shortly after its purchase. Trial Tr. 116:16-20. David
    and Robert testified that David completely redid one of the bathrooms, replacing the
    floor, toilet and sink. Trial Tr. 107:15-17; Trial Tr. 103:10-20. John recalled that David
    replaced the bathroom floor, saying the work was “shoddy,” and indicated David “might
    have” done additional work. Trial Tr. 117:3-7; Trial Tr. 118:5-6; Trial Tr. 121:15-18;
    Trial Tr. 121:23-122:3.
    38
    Estate of Weber v. Weber, 
    2014 WL 589714
    , at *5 (Del. Ch. Feb. 17, 2014) (citing
    Burkett v. Ward, 
    2012 WL 6764072
    , at *1 (Del. Ch. Dec. 19, 2012)); Wilson v. Lank, 
    107 A. 772
    , 773 (Del. Ch. 1919) (“where one tenant in common improves the premises the
    cost of the improvements is not necessarily the measure of his rights to compensation or
    allowance, but it is the enhancement in value of the premises by reason thereof which is
    taken into consideration on equitable principle”).
    10
    John C. Ponder v. David R. Willey
    C.A. No. 2019-0349-PWG
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    labor performed by David on improvements, such that it would be equitable to
    increase John’s share of sale proceeds. Therefore, I deny John’s contribution claim
    for his expenditures on improvements.
    E. Waste on the Property
    John argues that David should be assessed damages because he committed
    waste, decreasing the value of the Property. 39 John asserts David let his dogs
    damage the home and failed to adequately maintain the Property – leaving debris
    (disabled cars, trash, junk and an old piano) strewn throughout the yard, and the
    grass uncut, at the time of the partition sale.40 David also refused access to the
    Property prior to, or at, the partition sale, which John argues had “a chilling effect
    on bidding” at the sale. 41
    The auctioneer at the partition sale testified that the weather was good the
    day of the auction, with 24 people attending the partition sale, 12 people registered
    to bid, and a final bid of $80,000.00. 42 He noted they had no access to the interior
    of the home or permission to be on-site.43 When asked if the inability to access the
    interior of the home negatively affected the bidding process, the auctioneer
    39
    D.I. 15, ¶ 22.
    40
    Id., ¶¶ 20, 21.
    41
    Id., ¶ 26.
    42
    Trial Tr. 11:6-18.
    43
    Trial Tr. 11:1-4.
    11
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    responded that he did not know since it was the first time it had happened to him
    but it “probably did not assist in the sale of the property.” 44 He commented on the
    unusual “debris” left outdoors on the Property, including cars, chairs, a boat,
    lawnmowers, a piano, and dog feces, testifying that the “condition of the property
    was not helpful.”45 He testified that the grass had not been cut in a month or
    more. 46 Although acknowledging that he is not a licensed real estate appraiser, the
    auctioneer testified that his gut feeling was that the Property would sell “within
    about 10 percent of a hundred thousand,” and that the $80,000.00 sale price “didn’t
    quite make it.”47 He also commented that “[i]t’s hard to say what people would
    pay at auction.”48 There was only one bidder (besides John’s attorney). 49 David
    responded that the condition of the yard would have “little impact at the auction.”50
    44
    Trial Tr.12:5-12.
    45
    Trial Tr.12:19-13:14; Trial Tr. 13:18-23; Trial Tr. 14:11-13.
    46
    Trial Tr.14:23-24.
    47
    Trial Tr. 15:6-12; Trial Tr. 21:11-14.
    48
    Trial Tr. 21:14-15. He testified that houses sell for less, and for more, than he thought
    they would. Trial Tr. 22:5-7.
    49
    Trial Tr. 15:12-13.
    50
    Trial Tr. 112:10-12.
    12
    John C. Ponder v. David R. Willey
    C.A. No. 2019-0349-PWG
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    Waste is “‘a spoil or destruction in lands, houses, trees, or other corporeal
    hereditaments committed or permitted’.” 51 A tenant in common can commit waste
    if they commit an act that causes substantial injury to the property. 52
    Here, the question is whether David’s actions constituted waste – or whether
    he substantially injured, or substantially diminished the value of, the Property.
    Robert testified that, when John and David purchased the Property, there were
    significant problems with the home, including leaking water pipes underneath the
    home, and that the home was an approximately 30-year old mobile home that had
    not been updated since it was built. 53 Robert testified that there had been dogs in
    the home prior to David’s moving into the home, David’s dogs were in the home
    as soon as David moved in, and that he did not see damage caused by David’s dogs
    after the improvements were made. 54
    It is undisputed that David left debris in the yard and the grass uncut at the
    time of the partition sale. Although it is possible those actions may have caused
    51
    Pilots’ Ass’n for Bay & River Delaware v. Lynch, 
    1992 WL 390697
    , at *3 (Del. Super.
    Nov. 19, 1992) (citation omitted).
    52
    Whitehead v. Whitehead, 
    181 A. 684
    , 686 (Del. Ch. 1935); see also Voss v. Green, 
    389 A.2d 273
    , 274 (Del. Super. 1978) (“[a] singular act of waste, [when the land was
    thereafter] put to productive agricultural use, [does not constitute a] showing that such
    use as such was a spoilage or was destructive of the land”).
    53
    Trial Tr. 93:17-22; Trial Tr. 92:21-24.
    54
    Trial Tr. 95:14-96:5. John may have desired that David not allow his dogs into the
    home but, if that was a condition of their agreement, there is no evidence that John
    13
    John C. Ponder v. David R. Willey
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    some reduction in the sale price, actual diminishment in value because of the
    debris or the uncut grass has not been shown – or quantified. The auctioneer’s
    testimony that it was his “gut feeling” the Property would sell for more than the
    $80,000.00 it sold for (within 10% of $100,000.00) must be contrasted with his
    statement that it is “hard to say” what a property will sell for during an auction.
    And, I cannot conclude that the “comparable” properties John presented to show
    that the Property should have sold for a higher price, are actually comparable to the
    Property. 55 Therefore, I find there is not sufficient evidence to show David’s
    actions substantially diminished the value of the Property, or he committed waste.
    F. Attorneys’ fees and costs
    John seeks to offset $5,572.18 in his attorneys’ fees and costs against
    David’s share of the sale proceeds. 56 “Under the American Rule and Delaware
    law, litigants are normally responsible for paying their own litigation costs,”
    notified David of his breach and took steps to prevent him from continuing to keep the
    dogs in the house.
    55
    The auctioneer reviewed sale prices of other properties close to the Property, including
    one that settled at $118,000.00 on July 30, 2019 (from the foreclosure) and then sold on
    June 30, 2020 for $139,000.00, which he said was similar in size although “a little
    newer.” Trial Tr. 16:9-17:6. Unlike the Property, that property appears to be a single-
    family home (not an older mobile home), with three bedrooms and five bathrooms, in
    good condition. See Pet’r’s Trial Ex. 9. He also commented on another property that
    settled for $230,000.00, noting that it was a six-acre tract – significantly larger than the
    Property. Trial Tr. 17:23-18:1.
    56
    D.I. 15, ¶ 29.
    14
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    including attorneys’ fees.57 Equitable exceptions to the American Rule include the
    bad faith exception, 58 as well as the “common fund doctrine” and the related
    “common benefit doctrine,” which are based “on the equitable principle that those
    who have profited from a litigation should share its costs.” 59 Here, I find no basis
    to shift John’s attorneys’ fees and costs onto David. There is no evidence of bad
    faith conduct by David during the litigation, or that John’s efforts, in seeking to
    partition the Property, produced a benefit that would not otherwise have existed.60
    Therefore, John’s claim for attorneys’ fees and costs is denied and he must bear his
    own attorneys’ fees and costs.
    57
    Mahani v. Edix Media Grp., Inc., 
    935 A.2d 242
    , 245 (Del. 2007); see also ATP Tour,
    Inc. v. Deutscher Tennis Bund, 
    91 A.3d 554
    , 558 (Del. 2014); Korn v. New Castle Cty.,
    
    2007 WL 2981939
    , at *2 (Del. Ch. Oct. 3, 2007).
    58
    Delaware courts have awarded attorney’s fees for bad faith when “parties have
    unnecessarily prolonged or delayed litigation, falsified records or knowingly asserted
    frivolous claims.” Kaung v. Cole Nat. Corp., 
    884 A.2d 500
    , 506 (Del. 2005) (citation
    omitted); see also RBC Capital Markets, LLC v. Jervis, 
    129 A.3d 816
    , 877 (Del. 2015)
    (citation omitted). “The bad faith exception is applied in ‘extraordinary circumstances’
    as a tool to deter abusive litigation and to protect the integrity of the judicial process.”
    Montgomery Cellular Holding Co. v. Dobler, 
    880 A.2d 206
    , 227 (Del. 2005) (citation
    omitted).
    59
    Korn, 
    2007 WL 2981939
    , at *2 (citation omitted).
    60
    The common benefit doctrine “is designed to equitably spread the costs of producing a
    benefit realized by a group, which benefit, absent the [Petitioner’s] efforts, would not
    exist.” Moore v. Davis, 
    2011 WL 3890534
    , at *2 (Del. Ch. Aug. 29, 2011). Through the
    partition sale, the co-owners “exchang[ed] an asset of equal value, i.e., the co-tenants
    exchange[d] an undivided fractional ownership in the property for a corresponding
    fractional interest in the net value of the property upon sale,” so the exchange was “a
    wash.” Estate of Proffitt v. Miles, 
    2012 WL 3542202
    , at *2 (Del. Ch. Aug. 4, 2012);
    Moore, 
    2011 WL 3890534
    , at *2.
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    John C. Ponder v. David R. Willey
    C.A. No. 2019-0349-PWG
    November 17, 2020
    III.    Conclusion
    For the reasons set forth above, I recommend the Court find that John is
    entitled to receive $35,172.75, and David is entitled to receive $32,519.93 of the
    $67,692.68 remaining in the sale proceeds, after costs of the partition sale were
    paid.61 This is a final report and exceptions may be filed pursuant to Court of
    Chancery Rule 144.
    Respectfully,
    /s/ Patricia W. Griffin
    Patricia W. Griffin
    Master in Chancery
    61
    If the remaining sale proceeds were split equally, David and John would each receive
    $33,846.34. David’s share is reduced by one-half of the property taxes paid as a part of
    the partition sale, or $1,326.41, and John’s share of the sale proceeds is increased by the
    same amount.
    16