Michael L. Medkiff - Page 6




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                                     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 is a contract, and general principles             
          of contract law apply in interpreting the settlement.  Id. at 330           
          (citing Robbins Tire & Rubber Co. v. Commissioner, 52 T.C. 420,             
          435-436, supplemented by 53 T.C. 275 (1969)).  A settlement may             
          be reflected in a formal written agreement or more informally,              
          such as in an offer and acceptance made by an exchange of                   
          letters.  Id. (citing Lamborn v. Commissioner, T.C. Memo. 1994-             
          515).  Written settlement agreements are enforced as binding                
          agreements.  Id. (citing Haiduk v. Commissioner, T.C. Memo. 1990-           
          506).                                                                       
               Ordinarily, once a settlement has been reached, it cannot be           
          repudiated by either party.  Id.  However, we may relieve a party           
          of an otherwise binding settlement agreement if the party can               
          show a lack of formal consent, fraud, mutual mistake, or other              
          similar ground.  Id. at 335; Revell v. Commissioner, T.C. Memo.             
          2007-37; see also Stamm Intl. Corp. v. Commissioner, 90 T.C. 315,           
          321-322 (1988).                                                             
               Both parties signed the stipulation in this case creating an           
          enforceable, binding settlement agreement between them.  Counsel            
          for respondent notified the Court on the day of trial that a                







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