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California Courts of Appeal

Aug. 11, 2022

Court clarifies when adverse judgment can be vacated

“He who seeks equity, must do equity and have ‘clean hands.’” wrote Justice Kenneth R. Yegan.

An adverse judgment for an unfulfilled settlement cannot be vacated if the parties recognize the amount as damages in the agreement, a unanimous appellate panel ruled.

The 2nd District Court of Appeal ruling came last month in the case of a Ventura County man who inadvertently admitted owing rent monies by signing a settlement to close a dispute. The panel said that the man’s “financial wound was self-inflicted” because he failed to fulfi...

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