How much is your “sweat equity”  really worth? David put many hours of sweat equity into restoring a 1932 Ford Roadster.  It was in great shape until it was totaled by Elizabeth, and it was bye, bye Highboy and hello Tristate Insurance Company.  The company offered to pay David the total value of the car, which was $35,000.  David said, “no way,” what about my sweat equity, and claimed the car was worth $80,000.  He sued hoping to sweat out of the insurance company the sweat equity he put into the car.  But the Court decided the only measure of value of an item completely destroyed is its market value at the time of destruction, and only if the market value cannot be ascertained, will the Courts turn to other ways of determining value.  The Court added, to award sweat equity would open the door to all sorts of speculation.  So you can’t mark up market value, and the Court said there’s no sweat in equity, but whoever said life was fair anyway.

THIS IS NEIL CHAYET LOOKING AT THE LAW™

David James Giacomino v. Tri-State Insurance Co.,  Court of Appeals of Minnesota, 6/29/99, Schumacher, J., 1999 W.L. 430788 (Minn. App.)

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