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expense deductions and Schedule E adjustments after the
stipulation of settled issues was signed and filed. Respondent’s
counsel denies that she promised petitioners anything other than
what had been agreed upon in the stipulation.
Respondent filed a Motion for Entry of Decision in each of
these consolidated cases. Each petitioner filed an Objection to
respondent’s motion and a Reply to respondent’s response.3
Discussion
A controversy before this Court may be settled by agreement
of the parties. Dorchester Indus. Inc. v. Commissioner, 108 T.C.
320, 329 (1997), affd. without published opinion 208 F.3d 205 (3d
Cir. 2000). A settlement stipulation is in essence a contract.
Stamos v. Commissioner, 87 T.C. 1451, 1455 (1986). Accordingly,
general principles of contract law determine whether a settlement
has been reached and, if so, whether the stipulation is binding
and enforceable. Dorchester Indus. Inc. v. Commissioner, supra
at 330.
Under such principles, we enforce a valid settlement
stipulation absent a showing of lack of formal consent, fraud,
3 The documents initially submitted by petitioners on July
23 and Oct. 10, 2002, asked the Court for an entry of decision in
which there would be no deficiencies, no additions to tax, and no
penalties for all taxable years in issue. The Court filed the
documents as petitioners’ (1) Opposition to Respondent’s Motion
for Entry of Decision and (2) Reply to Respondent’s Response to
Petitioner’s Opposition to Motion for Entry of Decision,
respectively. See Rule 54.
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