Nelson v. Huhn CA2/8

INTRODUCTION

Following their parents’ death, disputes arose between a brother and sister about the administration of their parents’ trust and the value of the trust’s assets, including two real properties located in California. The trust required an equalizing payment be made to the brother by the sister, but the siblings disagreed as to the amount, leading to litigation in the state of Washington. The siblings participated in mediation pursuant to the Annotated Revised Code of Washington (ARCW) section 11.96A.300 conducted by a Washington mediator, resulting in settlement. The settlement term sheet resolved the pending disputes between the siblings, including the appraisal process for determining the value of the two real properties. The settlement term sheet expressly specified the “valuation shall be based . . . on the highest and best use of the property using the Uniform Standards of Professional Appraisal Practice.” The siblings’ mutually agreed-upon appraiser prepared and emailed the reports but, within days, notified the siblings that the report for one of the properties is erroneous and incomplete as a result of a subordinate’s mistake. The sister argued the appraiser’s…