Menasco

I. BACKGROUND

In 2016, the Menascos filed a complaint against the Kilarrs alleging that in 2002 the two couples jointly purchased a 13-week timeshare unit in South Lake Tahoe; that the Menascos and the Kilarrs were thereafter partners in the ownership of the timeshare unit; that they agreed to share in the payment of timeshare expenses on a 50/50 basis; and that the Kilarrs failed to pay their share of the expenses. According to the Kilarrs, “[m]any years ago” they told the Menascos that “they could have” the Kilarrs’ interest in the timeshare; but to the Kilarrs’ surprise, “[a]fter not having heard from the Menasco[s] for about ten years,” the Menascos “suddenly brought [this] lawsuit claiming that [the Kilarrs] were liable to them for half of the timeshare expenses going back to the time we told them they could have our interest.” The parties entered into a written settlement agreement in 2018 settling the Menascos’ 2016 lawsuit pursuant to an arrangement in which the Kilarrs, who were still shown on the deed as joint owners of record, would sign a quitclaim deed, but then would immediately acquire the timeshare unit from the Menascos for $117,726 as part of a tax-free 1031…