Colin Operated an Apartment Building in Which He Had Installed

question 29

Essay

Colin operated an apartment building in which he had installed dishwashers in the kitchen cabinets. The dishwashers were attached by a flexible plastic hose to the copper plumbing system of the apartment and were plugged into the wall electrical wiring by means of a normal socket. As an express term of Colin's mortgage, all appliances in the apartments were considered to be fixtures. Colin soon ran into financial difficulties in his operation and found himself pressed by his creditors. The holder of the mortgage foreclosed on the building, and the local hydro utility obtained a judgment against Colin. The hydro company seized upon the appliances of the building, including among them, the dishwashers. The mortgage holder brought an action to recover the property and appliances, including the dishwashers. Discuss the issues raised with respect to fixtures, treating the situation of the dishwashers as well as other appliances. Discuss the issues that both creditors may raise in their argument and explain why the mortgage holder should not simply limit his argument to the provisions of the mortgage. Render a decision.

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Definitions:

Index Funds

Mutual funds or ETFs designed to track the components of a market index, offering broad market exposure and low operating expenses.

Expected Monetary Value

A statistical concept that calculates the average outcome of a future event that may or may not happen, taking into account all possible scenarios and their probabilities.

Average Payoff

The expected outcome or return of an investment or decision averaged over all possible scenarios.

Expected Value

The predicted value of a variable, calculated as the weighted average of all possible values this variable can take; each value is weighted by its probability of occurrence.