Stone v. Jetmar Properties, LLC

Keith Hammond (defendant) signed articles of organization for Jetmar Properties (defendant) but never filed them, then, acting as Jetmar's president, fraudulently induced retiree Dale Stone (plaintiff) to quitclaim a duplex to Jetmar by promising Stone an interest in a condominium development and promising to later deed the duplex back; Hammond instead mortgaged the duplex to Ortega (defendant) in exchange for a loan extension, never repaid the loan or deeded the property back, and Ortega foreclosed. Stone sued, arguing the quitclaim deed was void because Jetmar didn't legally exist (and thus couldn't take title) at the time of the transfer; the trial court awarded Stone the property and damages, and Ortega appealed.