Madrid v. Spears
United States Court of Appeals for the Tenth Circuit
220 F.2d 51 (1957)
Spears (plaintiff) sued to quiet title to a one-half interest in property after alleging a deed conveying her interest had been forged, during which time Madrid (defendant) had occupied and made improvements to the property over four years; Spears conceded Madrid deserved compensation for the improvements' value but sought an offset for profits from Madrid's wrongful use, while the trial court awarded Madrid credit for half the improvements' value without offsetting for profits (lacking evidence of the improved-versus-unimproved rental-value difference), then partitioned the property with a lien against Spears's share for that credit. Both parties appealed - Madrid arguing compensation should be measured by the increase in overall property value rather than the improvements' actual cost, and Spears arguing she should have received an offset for Madrid's profits.
Whether, under New Mexico law, a good faith improver upon wrongfully occupied real property is entitled to credit for the increase in value to the property as a whole resulting from improvements when the failure to award credit for the increase in value to the property as a whole would not result in unjust enrichment of the plaintiff.