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Dispute Resolution Keyed to Menkel-Meadow, 3rd Ed.
Stare v. Tate
Citation:
21 Cal. App. 3d 432, 98 Cal. Rptr. 264 (1971)Facts
Joan and Tim Tate were negotiating a divorce settlement after years of protracted negotiations. Both parties were represented by counsel. The main disputes centered on the value of certain real estate (the Holt property) and the community property status of stocks in Tim’s name. Joan valued the Holt property at $550,000, while Tim valued it at $425,000-$450,000. In preparing a settlement proposal, Joan’s attorney made two significant mathematical errors that undervalued her share by approximately $50,000. Tim’s accountant discovered the errors and informed Tim’s attorney, who decided to use the erroneous figure in the counteroffer, presenting only the equity value rather than the gross value minus encumbrances as was done with other properties. The parties reached a settlement based on this counteroffer. After the divorce was finalized, Tim sent Joan a note gloating about the “$100,000 mistake in your figures,” prompting her to file for reformation of the agreement.
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