Sunday, November 18, 2012

Does a claim of mistake invalidate a divorce agreement?

In the case of Rachid v. Perez, 26 So.3d 70 (Fla. 3rd DCA 2010), the court ruled a claim of mistake in a settlement agreement is invalid unless conclusively proven.
The husband and wife were married in 1978 and entered into a prenuptial agreement which provided that the past, present and future property of each spouse would remain the separate property of the respective spouse. In 2006 the husband died while divorce proceedings were pending. The wife sought an elective share of the estate along with other property. The trial court ordered mediation, the parties settled the case and the trial court approved the agreement. When the wife later failed to comply with the terms of the agreement, the personal representative of the estate moved to enforce the settlement. The wife appeared at the hearing and testified that she wanted more time to consult with an attorney and to investigate the settlement and the prenuptial agreement. The court granted the motion to enforce. The wife did not appeal. Instead, she retained new counsel who filed an emergency motion to stay the proceedings, a motion for rehearing and a motion to set aside the order of enforcement. The motions were denied and the wife appeal, seeking rescission of the settlement agreement. The District Court held:
1. "[The wife's] argument is without merit as the record does not support the legal remedy of rescission on the basis that the settlement agreement was the product of unilateral mistake."
2. "Under Florida law, the party seeking rescission based on unilateral mistake must establish that: (1) the mistake was induced by the party seeking to benefit from the mistake, (2) there is no negligence or want of due care on the part of the party seeking a return to the status quo; (3) denial of release from the agreement would be inequitable; and (4) the position of the opposing party has not so changed that granting the relief would be unjust."
3. "Here, [the wife] does not claim that any party misled or induced her to enter into the settlement agreement. Rather, she contends that her attorney misled or induced her.

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