Lopez v. Phillipsen
Plaintiff appeals from the trial courts order granting defendant Judy Phillipsens motion to enforce a settlement agreement regarding their dispute over the ownership of real property in Palm Desert. The settlement agreement provided that Lopez would obtain title to the property after fulfilling various conditions, including paying off all liens and encumbrances. After executing the agreement, the parties discovered that the Franchise Tax Board had filed a lien against the property for Phillipsens personal tax debt of $12,782.77. When Lopez refused to pay the tax lien and thereby failed to close escrow within the allotted time provided under the agreement, Phillipsen filed an action to enforce the agreement, which would have extinguished any claim Lopez had in the property. On appeal, Lopez claims that the trial court erred in granting Phillipsens motion under Code of Civil Procedure section 664.6. He specifically argues that he was the de facto owner of the property and the agreement was unenforceable because there was a lack of mutuality of consent or a mistake of fact. While Court cannot make a determination as to whether Lopez was the de facto owner of the property, Court agree with Lopezs argument that the settlement agreement was void because of a unilateral mistake of fact.
Comments on Lopez v. Phillipsen