Legal Question in Construction Law in California
cancellation of a signed contract between neighbors
what is the meaning of : confidential settlement negotiations pursuant to evidence code, section 152?
After signing the contract with my neighbor regarding our request that he removes his planter box &plants from our retaining wall, which he has agreed to do so,I later noticed
that while chatting & reading that I actually missed a very important line. The parties are each to bear their own costs, fees and expenses. I promptly called him & he verbally agreed to have his lawyer remove this line. We had agreed tat he was to bear the full cost. His home is in escrow. How can I cancel this signed contract of 11/19/05 ?
2 Answers from Attorneys
Re: cancellation of a signed contract between neighbors
Your post is unclear regarding what it is that you are specifically seeking to accomplish. I can't tell if you are seeking to undo a settlement agreement or some other type of contract.
Evidence Code Section 1152 (not 152) basically says that communications during settlement discussions are confidential and not admissible in court to prove liability. It is meant to encourage settlement negotiations. If someone offers you $100,000 to settle a case, you can't turn around and tell the jury at trial that the other side offered you that much money.
Re: cancellation of a signed contract between neighbors
The terminology "parties are each to bear their own costs, fees and expenses" or closely similar language is typical of settlement agreements and judgments, and usually refers to costs, fees and expenses in conection with a preceding lawsuit, and not necessarily to costs associated with carrying out the settlement.
In other words, it may refer to lawyer fees and court cost, and not to the cost to remove the planter boxes.
One would have to read the contract as a whole to make even an educated guess, however.
You have two possible legal theories to overturn the written agreement if it really doesn't read the way it was intended: mutual mistake and subsequent oral modification of a written contract. These are powerful theories if you have proof -- but proving that neither party intended the written contract to contain that boilerplate sentence, or proving that the neighbor orally agreed to have the line removed, could be exepsnive, time-consuming and difficult, especially if your dispute has just been dismissed pursuant to this settlement.