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The facts indicate that the property was purchased to enhance the
Bensons’ personal residence. The fact that it was finally deeded
to the Bensons merely confirms this.
Clearly, the Bensons received a personal and economic
benefit when ERG purchased 143 Alice Lane. They had the
exclusive use of real property, and eventually the title, for
which they paid no consideration. We find and hold that ERG’s
payment in 1990 for 143 Alice Lane was a constructive dividend to
Burton. We also find and hold, under the same reasoning, that
ERG’s payment of property taxes, $3,879 in 1993 and $8,196 in
1994, also constituted constructive dividends to the Bensons.
4. ERG Check to Burton (Ref. Carroll)
According to a 1989 petition for confirmation of an
arbitration award, Burton owed Mr. Carroll $96,748.98, plus
interest thereon. In 1989, ERG issued a check payable to Burton
for $96,748.98, on which is written “for Michael B. Carroll”.
With these funds, Burton purchased a cashier’s check in the
amount of $97,467.21 made payable to Mr. Carroll. The Bensons
offered no evidence or explanation concerning this check other
than stating that ERG was also named as a defendant in that suit.
However, the fee arbitration award names only Burton as a
defendant. Indeed, we infer from the recitation of the facts
that the representation involved a personal and noncorporate
matter between the brothers. The petition for confirmation of
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