Facts: Mary Jones often cared for her wealthy elderly neighbor, James Smith. He paid her $25 per day for her help and even gave her a vintage Rolex watch as a thank you for her kindness. She took the watch to an antique store and had it appraised for $15,000 and then put it in her bank's safety deposit box. Mary also claimed that shortly before his death, Smith gave her a large number of shares of stock in a company that he founded in his youth, that is now worth billions of dollars. In fact, Smith called his broker, intending to instruct him to transfer the shares to Mary's name, but the broker was ill and out of the office that day. So, Smith told Mary to write her name on the stock shares certificates and keep them, which she did. Two weeks later, Smith died of natural causes. When Mary presented the shares to Smith's broker to transfer ownership to her, the broker refused because Smith had never endorsed (signed over) the shares as the law requires. In effect, the broker argued, it was like Smith wrote Jones a check without ever signing it, making it legally null and void.

Smith's estate also sued Mary for the return of the Rolex watch, claiming there was no written proof or evidence that the watch was intended as a gift. Mary counter-sued Smith's estate for the shares of stock and for a declaration that the Rolex is hers to keep.

Argument for Mary Jones:The purpose of the law is to do what a donor intended, and it is obvious that Smith intendedfor Mary to have both the watchand the shares of stock. Why else would he have given them to her? Smith's greedy and undeserving heirs should not be allowed to interfere with the deceased's intention.Mary was the one who helped Smith during his later years, not his adult children.

Argument for the Estate:Mary is not entitled to the watchbecause we have no way of knowing what Smith's intentions were when he gave it to her since he is now dead and cannot testify as to what he intended. Moreover, she is not entitled to the shares of stock because Smith's failure to endorse them over to her meant he never delivered them, and that is an essential element of a gift.

You be the Judge:

A. Is Mary entitled to keep the Rolex watch? Explain your answer.

B. Should the estate be required to hand over the shares of stock to Mary?Explain your answer.