Stamm International Corp. v. Commissioner
United States Tax Court
Shortly prior to trial, the parties negotiated a settlement, which was reduced to a written agreement specifying the manner of resolving various issues. Respondent thereafter moved to vacate the agreement, alleging that counsel had miscalculated the dollar value of the settlement. Held, unilateral error of counsel, in the absence of misrepresentation by the adverse party, is not a sufficient ground to vacate a settlement agreement.
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Shortly prior to trial, the parties negotiated a settlement, which was reduced to a written agreement specifying the manner of resolving various issues. Respondent thereafter moved to vacate the agreement, alleging that counsel had miscalculated the dollar value of the settlement. Held, unilateral error of counsel, in the absence of misrepresentation by the adverse party, is not a sufficient ground to vacate a settlement agreement. Held, further, the settlement agreement is susceptible of interpretation and enforcement in accordance with the terms set out in the writing.
1Opinion of the Court
OPINION
COHEN, Judge:
Respondent has filed a motion to withdraw memorandum of settlement and recalendar for trial, seeking to avoid the provisions of a memorandum of settlement filed November 25, 1986. Respondent contends that the agreed settlement was intended to be a “bottom line” settlement in which petitioner would pay between $1.8 million and $1.9 million. Petitioner contends that the settlement was on an issue-by-issue basis and should be enforced in accordance with its terms, although application of a provision of the Internal Revenue Code overlooked by respondent’s counsel reduces…
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