Shapiro v. Union Bank

Opinion

KAUS P. J. This application or motion for a “stipulated reversal” of a trial court judgment was filed by appellant Martha Shapiro and by the Union Bank, respondent and executor of the will of Saul Shapiro.

In August 1972 an interlocutory judgment was entered dissolving the marriage of Martha and Saul Shapiro, determining separate and community property, approving as valid a 1962 property settlement agreement, and ordering a division of the community property.

In October 1972, Martha filed a timely notice of appeal from those provisions in the interlocutory judgment dealing with the property. In December 1972, Saul died. No final judgment of dissolution hás been entered. The Union Bank was appointed executor under Saul’s will and an appropriate substitution of parties was effected.

All of the primarily affected parties—Martha and the various beneficiaries under the husband’s will—entered into a settlement agreement concerning Saul’s estate. The agreement encompassed the property covered by the interlocutory judgment on appeal. The settlement agreement “requires that the parties take appropriate steps to cause the appeal [sic] [462]to be reversed and remanded to the Superior Court and the interlocutory judgment to be modified to accord with the Settlement Agreement.”

In December 1973, the attorneys for wife and Union Bank filed a stipulation and motion to reverse the interlocutory judgment and to remand the case to the superior court for modification. This document has been supplemented by additional submissions.

The reason stated for not just abandoning the appeal is that “. . . it appears that the effective date of the judgment would relate back to the date of entry, prior to the husband’s death. This would destroy the community character of the property and, because of the terms of the judgment, would result in a division and distribution of the property effective as of a date prior to the husband’s death. The property would not be distributed through probate and the wife would suffer substantial and unnecessary tax burdens.” (Italics added.)

We do not know exactly how much money and property is involved in husband’s estate. However, the amount of just the disputed property in the dissolution action was about $6,200,000. The settlement will yield to Martha “a tax savings of between 45-55%. . . .”