Adam agreed to manufacture customized machinery to be sold to Brown for $100,000. Brown's factory burned down four months after the contract had been entered into. Adam had incurred an expenditure of about $25,000 and Brown had made payment to Adam of $15,000. Brown sues for restitution of its $15,000 payment and Adam countersues for payment of its expenditures in reliance. How should these claims be disposed of?