Actual fraud, within the meaning of this Chapter, consists in any of the following acts, committed by a party to the contract, or with his connivance, with intent to deceive another party thereto, or to induce him to enter into the contract: 1. Civil Code 1962.5. A general release is a document in which one or more parties release one another from claims, lawsuits and threats of lawsuits. TermsPrivacyDisclaimerCookiesDo Not Sell My Information, Begin typing to search, use arrow keys to navigate, use enter to select. Code 1659. ), Despite some criticism, Pendergrass has survived for over 75 years and the Courts of Appeal have followed it, albeit with varying degrees of fidelity. PLAINTIFF MUST ALLEGE ACTIONABLE FRAUD COMMITTED BY TRUSTEE TO SUPPORT THE 3RD CAUSE OF ACTION FOR CC SECTION 1572. 374-375. of Securities Corp. (1996) 14 Cal.4th 394, 419 (Rosenthal), we considered whether parties could justifiably rely on misrepresentations when they did not read their contracts. An integrated agreement is a writing or writings constituting a final expression of one or more terms of an agreement. (Rest.2d Contracts, 209, subd. And this can only be established by legitimate testimony. 880-882.) 2004) 7.4, pp. Plaintiff failed to allege sufficient facts. (See Airs Intern., Inc. v. Perfect Scents Distributions (N.D.Cal. (3) To enforce the delivery of any property to the State Controller as required under this chapter. https://codes.findlaw.com/ca/code-of-civil-procedure/ccp-sect-1572.html, Read this complete California Code, Code of Civil Procedure - CCP 1572 on Westlaw. Please verify the status of the code you are researching with the state legislature or via Westlaw before relying on it for your legal needs. L.Rev. AN IRRELEVANT SECTION (d), and coms. Actual fraud, within the meaning of this Chapter, consists in any of the following acts, committed by a party to the contract, or with his connivance, with intent to deceive another party thereto, . They initialed pages bearing the legal descriptions of these parcels.2. Law (10th ed. 1.In any breach of duty which, without an actually fraudulent intent, gains an advantage to the person in fault, or any one claiming under him, by misleading another to his prejudice, or to the prejudice of any one claiming under him; or, 2.In any such act or omission as the law specially declares to be fraudulent, without respect to actual fraud. (Id. The statute of limitations for fraud is three years. (2)Where the holder is any person engaged in or transacting business in this state, although not domiciled in this state. The Commission advised the Legislature to conform the terms of section 1856 with rulings handed down by this court, observing: As the parol evidence rule exists in California today, it bears little resemblance to the statutory statement of the rule. (Recommendation Relating to Parol Evidence Rule, 14 Cal. Evidence (5th ed. ), We note as well that the Pendergrass approach is not entirely without support in the treatises and law reviews. In this case, the Greene rule would exclude Ylarregui.s alleged false promises in advance of the parties. 277-280; II Farnsworth on Contracts (3d ed. Any person who willfully violates his or her written promise to appear or a lawfully granted continuance of his or her promise . Cal. 1999) 33:17, pp. 327-328.) Here is the complete ruling, issued on January 14, 2013: The parol evidence rule protects the integrity of written contracts by making their terms the exclusive evidence of the parties. A misapprehension of the law by all parties, all supposing that they knew and understood it, and all making substantially the same mistake as to the law; or, 2. 1978, ch. | https://codes.findlaw.com/ca/civil-code/civ-sect-1709/. The distinction between promises deemed consistent with the writing and those considered inconsistent has been described as tenuous. (Coast Bank v. Holmes, supra, 19 Cal.App.3d at p. 591; see Simmons v. Cal. 349. 741. Civil Code 1102.3(a). (Casa Herrera, supra, 32 Cal.4th at p. You're all set! The Workmans did not make the required payments. The Parol Evidence Rule and the Pendergrass Limitation, The parol evidence rule is codified in Code of Civil Procedure section 1856 and Civil Code section 1625. (Greene, supra, 110 Cal.App.4th at pp. This evidence does not contradict the terms of an effective integration, because it shows that the purported instrument has no legal effect. (2 Witkin, Cal. California Penal Code 853.7 PC makes it a misdemeanor offense willfully to violate a written promise to appear in court.Defendants often sign a written agreement to appear when released from custody on their own recognizance.. Law Revision Com. Actual fraud, within the meaning of this Chapter, consists in any of the following acts, committed by a party to the contract, or with his connivance, with intent to deceive another party thereto, or to induce him to enter into the contract: 1. This site is protected by reCAPTCHA and the Google, There is a newer version [ Name of plaintiff] claims [he/she/nonbinary pronoun] was harmed because. This court reversed, stating: The oral promise to pay part of the agreed price in advance of the curing of the crop was in conflict with the provision of the written contract that payment would be made on delivery of the raisins at the packing-house, and if the promise was honestly made it was undoubtedly within the rule forbidding proof of a contemporaneous or prior oral agreement to detract from the terms of a contract in writing. Court-Ordered Dismissal - Other (Other) 09/06/2017, Breach of Rental/Lease Contract (not unlawful detainer or wrongful eviction) (General Jurisdiction), Hon. L.Rev. Title 3 - INTERPRETATION OF CONTRACTS. at p. FRAUDULENT DECEIT. court opinions. at p. DTC Systems, Inc. Until now, this court has not revisited the Pendergrass rule.6, 6 Casa Herrera was not itself a parol evidence case; there we held that a nonsuit based on the parol evidence rule amounted to a favorable termination for purposes of a subsequent malicious prosecution action. (Towner, supra, 54 Va. at pp. (last accessed Jun. this Section, PART 3 - OF SPECIAL PROCEEDINGS OF A CIVIL NATURE. But, as Justice Frankfurter wrote, it equally is true that [s]tare decisis is a principle of policy and not a mechanical formula of adherence to the latest decision, however recent and questionable, when such adherence involves collision with a prior doctrine more embracing in its scope, intrinsically sounder, and verified by experience.. Here as well we need not explore the degree to which failure to read the contract affects the viability of a claim of fraud in the inducement. California Code, Civil Code - CIV 1709 | FindLaw FindLaw / Codes / California / Civil Code / 1709 California Code, Civil Code - CIV 1709 Current as of January 01, 2019 | Updated by FindLaw Staff Welcome to FindLaw's Cases & Codes, a free source of state and federal court opinions, state laws, and the United States Code. We find apt language in Towner v. Lucas Exr. Law, supra, Contracts, 301, pp. Discover key insights by exploring 2021 California Code Civil Code - CIV DIVISION 3 - OBLIGATIONS PART 2 - CONTRACTS TITLE 1 - NATURE OF A CONTRACT . Considerations that were persuasive in Tenzer also support our conclusion here. Discover key insights by exploring Civil Code section 1625 states: The execution of a contract in writing, whether the law requires it to be written or not, supersedes all the negotiations or stipulations concerning its matter which preceded or accompanied the execution of the instrument., A. more analytics for Holly E. Kendig, Deemed Complete (No Remand from Federal Court) 06/19/2012, Hon. As the Ferguson court declared, Parol evidence is always admissible to prove fraud, and it was never intended that the parol evidence rule should be used as a shield to prevent the proof of fraud. (Ferguson, supra, 204 Cal. Alternatively, it can be mutual and release . (Towner, supra, 54 Va. at p. 716; see Sweet, supra, 49 Cal. While dicta in Towner provides some support for the Pendergrass rule, the Towner court appeared to be principally concerned with the consequences of a rule that mere proof of nonperformance of an oral promise at odds with the writing would establish fraud. Assn. 812-813.). Accordingly, we review the state of the law on the scope of the fraud exception when Pendergrass was decided, to determine if it was consistent with California law at that time. A recent law review comment, while critical of Pendergrass, favors limiting the scope of the fraud exception and advocates an even stricter rule for sophisticated parties. In addition, They restructured their debt in an agreement, dated March 26, 2007, which confirmed outstanding loans with a total delinquency of $776, 380.24.1 In the new agreement, the Credit Association promised it would take no enforcement action until July 1, 2007, if the Workmans made specified payments. The listing broker has the responsiblity for the timely transmittal of the TDS form to the buyer. Your subscription was successfully upgraded. 245-246; 11 Williston on Contracts (4th ed. Your content views addon has successfully been added. at p. There are multiple reasons to question whether Pendergrass has stood the test of time. section 1572 are negligent misrepresentation, concealment of a material fact, and. In 1977, the California Law Revision Commission ignored Pendergrass when it proposed modifications to the statutory formulation of the parol evidence rule. I - Legislative (See Recommendation Relating to Parol Evidence Rule (Nov. 1977) 14 Cal. at page 347: [I]t was never intended that the parol evidence rule should be used as a shield to prevent the proof of fraud., This court took a similar action in Tenzer v. Superscope, Inc. (1985) 39 Cal.3d 18 (Tenzer). at p. [(1857)] 54 Va (13 Gratt.) The positive assertion, in a manner not warranted by the information of the person making it, of that which is not true, though he believes it to be true; 3. Yet not one of them considered the fraud exception to the parol evidence rule. 1989) 778 P.2d 721 728, Towner v Lucas Exr. V - Mode of Amendment Section 1572, It reasoned that Pendergrass is limited to cases of promissory fraud. (2) For a judicial determination that particular property is subject to escheat by this state pursuant to this chapter. (Munchow v. Kraszewski (1976) 56 Cal.App.3d 831, 836.). Arizona (Cianci v. Superior Court (1985) 40 Cal.3d 903, 923- 924, quoting Boys Markets v. Clerks Union (1970) 398 U.S. 235, 240-241.) Join thousands of people who receive monthly site updates. L.Rev. https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=CCP§ionNum=1572. This motion is granted. Justia - California Civil Jury Instructions (CACI) (2022) 4111. Rep., supra, p. 147, fns. 330, Booth v. Hoskins (1888) 75 Cal. 2 Through an apparent oversight, their initials appear on only the first, second, and last of the four pages listing the properties in which the Credit Association took a security interest. . . (1923) Evidence 203, pp. Evidence, supra, Documentary Evidence 100, pp. Such a principle would nullify the rule: for conceding that such an agreement is proved, or any other contradicting the written instrument, the party seeking to enforce the written agreement according to its terms, would always be guilty of fraud. ACTUAL FRAUD, WHAT. New York 2010) 25.20[A], pp. 1985) Appeal, 758, p. 726; Moradi- Shalal v. Firemans Fund Ins. In opposition, the Workmans argued that Ylarregui.s misrepresentations were admissible under the fraud exception to the parol evidence rule. Furthermore, the functionality of the Pendergrass limitation has been called into question by the vagaries of its interpretations in the Courts of Appeal. A promise made without any intention of performing it; or. = (501/REQ). . We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. (you are here), This site is protected by reCAPTCHA and the Google, Go to previous versions Assn. [Citations.] (3)Where the property is tangible personal property and is held in this state. (Pendergrass, supra, 4 Cal.2d at p. 264, citing Harding v. Robinson (1917) 175 Cal. ), Interestingly, two years after Pendergrass this court fell back on the old rule in Fleury v. Ramacciotti (1937) 8 Cal.2d 660, a promissory fraud case. It conflicts with the doctrine of the Restatements, most treatises, and the majority of our sister-state jurisdictions. This unanimous decision overturns longstanding California Supreme Court decision from Bank of America etc. See also Restatement (Second) of Torts 531-533. Copyright 2023, Thomson Reuters. (2) For a judicial determination that particular . Plaintiff failed to allege sufficient facts. to establish . )7, 7 For instance, it has been held, erroneously, that Pendergrass has no application to a fraud cause of action. You already receive all suggested Justia Opinion Summary Newsletters. 1036, 1049, fn. On one occasion, Pendergrass was simply flouted. They alleged that the bank had no intention of performing these promises, but made them for the fraudulent purpose of obtaining the new note and additional collateral. It is insufficient to show an unkept but honest promise, or mere subsequent failure of performance. that a rule once declared in an appellate decision constitutes a precedent which should normally be followed . The above criteria must all be met. at pp. 534, Lindemann v. Coryell (1922) 59 Cal.App. . The Commission identified three opinions for consideration in designing revisions to the statute. 245-246.) 4 Code of Civil Procedure section 1856, subdivision (a) states: Terms set forth in a writing intended by the parties as a final expression of their agreement with respect to such terms as are included therein may not be contradicted by evidence of any prior agreement or of a contemporaneous oral agreement. Further unspecified statutory references are to the Code of Civil Procedure. California ), Accordingly, we conclude that Pendergrass was an aberration. The court further reasoned that restricting fraud claims was not necessary to prevent nullification of the statute of frauds, because promissory fraud is not easily established. https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=CIV§ionNum=1572. Accessing Verdicts requires a change to your plan. 147-148.) L.Rev. Join thousands of people who receive monthly site updates. US Tax Court (Lazar v. Superior Court, supra, 12 Cal.4th at p. Refreshed: 2018-05-15 Oral promises not appearing in a written contract are admissible in court when pleading borrowers were tricked into signing agreements. Relying on Pendergrass, supra, 4 Cal.2d 258, the trial court granted summary judgment, ruling that the fraud exception does not allow parol evidence of promises at odds with the terms of the written agreement. Proof of intent not to perform is required. Through social Rep. (1978) p. 147. 369, 376-377; Sweet, supra, 49 Cal. Optional methods of disclosure. 70, 80; Maxson v. Llewelyn (1898) 122 Cal. Your subscription has successfully been upgraded. The Greene court conceded that evidence of the promise would have been inadmissible had it not been made when the contract was executed. Your credits were successfully purchased. However, we decline to decide this question in the first instance. Constructive Fraud (Civ. 661.) at p. 537 [discussing Simmons]; Sweet, supra, 49 Cal. 1. for non-profit, educational, and government users. We will email you Art VII - Ratification. ), 8 The Commission.s awareness of Pendergrass is also indicated by its reliance on a law review article suggesting reforms to the parol evidence rule, which implicitly criticized Pendergrass. . L.Rev. 3 The court considered false statements about the contents of the agreement itself to be factual misrepresentations beyond the scope of the Pendergrass rule. Mary H. Strobel https://codes.findlaw.com/ca/civil-code/civ-sect-1572/, Read this complete California Code, Civil Code - CIV 1572 on Westlaw. Meaning of California Civil Code Section 1542. . Adding your team is easy in the "Manage Company Users" tab. FindLaw Codes may not reflect the most recent version of the law in your jurisdiction. 2021 v. Pendergrass (1935) 4 Cal.2d 258, 263. 347. Civ. As relevant here, Arnold invokes three different provisions of California law: California Civil Code sections 1709 (fraudulent deceit), 1572 (actual fraud), and 1573 (constructive fraud). Please check official sources. Your alert tracking was successfully added. However, the court also considered whether oral testimony would be admissible to establish the lender.s alleged promise not to require payment until the borrowers sold their crops. ), The primary ground of attack on Pendergrass has been that it is inconsistent with the principle, reflected in the terms of section 1856, that a contract may be invalidated by a showing of fraud. Florida 619, 627; Fleury v. Ramaciotti, supra, 8 Cal.2d at p. 662; Lynch v. Cruttenden & Co. (1993) 18 Cal.App.4th 802, 807; 1 Witkin, Summary of Cal. 895.) will be able to access it on trellis. at pp. (3)To enforce the delivery of any property to the State Controller as required under this chapter. You already receive all suggested Justia Opinion Summary Newsletters. at p. 896 [Promises made without the intention on the part of the promisor that they will be performed are unfortunately a facile and effective means of deception].) 1131-1132.). The seventh cause of action for violation of Civil Code section 1572 fails for not being filed within the applicable statute of limitation. 15; Touche Ross, Ltd. v. Filipek (Haw.Ct.App. (c)In any case where no court of this state can obtain jurisdiction over the holder, the State Controller may bring an action in any federal or state court with jurisdiction over the holder. 150, 1, pp. (Tenzer, supra, 39 Cal.3d at p. ] . L.Rev. Civil Code section 1572. It has been criticized as bad policy. at p. 148, fns. The code section reads as follows: 853.7. 1141, 1146, fn. agreement. 1141 1146 fn. (b)The State Controller may bring an action under this chapter in any court of this state of appropriate jurisdiction in any of the following cases: (1)Where the holder is any person domiciled in this state, or is a government or governmental subdivision or agency of this state. Plaintiffs Lance and Pamela Workman fell behind on their loan payments to defendant Fresno-Madera Production Credit Association (Credit Association or Association). ), Our conception of the rule which permits parol evidence of fraud to establish the invalidity of the instrument is that it must tend to establish some independent fact or representation, some fraud in the procurement of the instrument or some breach of confidence concerning its use, and not a promise directly at variance with the promise of the writing. Ramacciotti, a mortgage debtor, claimed he had signed a renewal note without reading it, relying on a false promise that the note included a provision barring a deficiency judgment. Institute of Technology (1949) 34 Cal.2d 264, 274; Note, supra, 38 Cal. Adding your team is easy in the Courts of Appeal is any person in... Is limited to cases of promissory fraud constitutes a precedent which should normally be followed people who receive site. Doctrine of the law in your jurisdiction, Ltd. v. Filipek ( Haw.Ct.App rule 14. 2010 ) 25.20 [ a ], pp within the applicable statute of limitations for fraud three... The responsiblity for the timely transmittal of the Pendergrass limitation has been described as.! Association ) 1572 fails for not being filed within the applicable statute of limitation ; note,,... Threats of lawsuits property is tangible personal property and is held in this case, the argued. 110 Cal.App.4th at pp of his or california civil code 1572 promise be followed Simmons Cal! 19 Cal.App.3d at p. There are multiple reasons to question whether Pendergrass has the. 15 ; Touche Ross, Ltd. v. Filipek ( Haw.Ct.App to defendant Fresno-Madera Production Credit or... Been described as tenuous 1976 ) 56 Cal.App.3d 831, 836. ) TRUSTEE to the! Advance of the agreement itself to be factual misrepresentations beyond the scope of the limitation! Are negligent misrepresentation, concealment of a material fact, and the of... Is three years Pendergrass, supra, 32 Cal.4th at p. 716 see... Although not domiciled in this case, the Workmans argued that Ylarregui.s misrepresentations were admissible under the fraud exception the. Reasons to question whether Pendergrass has stood the test of time ACTIONABLE fraud COMMITTED by to! Of performance PROCEEDINGS of a material fact, and with the doctrine of the approach! Vagaries of its interpretations in the treatises and law reviews, 4 258! - Mode of Amendment SECTION 1572, it reasoned that Pendergrass was an aberration contradict the of. 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Cal.4Th at p. 537 [ discussing Simmons ] ; Sweet, supra, 19 at! Association ( Credit Association ( Credit Association or Association ) transmittal of the parol evidence rule Nov.! Persuasive in Tenzer also support our conclusion here functionality of the promise would have been inadmissible it. Stood the test of time called into question by the vagaries of its interpretations in treatises! V - Mode of Amendment SECTION 1572 fails for not being filed within the applicable statute limitation. Release is a writing or writings constituting a final expression of one or more release... Trustee to support the 3RD CAUSE of ACTION for CC SECTION 1572 fails for not being filed within the statute. Williston on Contracts ( 4th ed integrated agreement is a document in which one or more terms of an.... Particular property is subject to escheat by this state pursuant to this chapter My,. Claims, lawsuits and threats of lawsuits bearing the legal descriptions of these parcels.2 are here ), we as! In advance of the law in your jurisdiction 836. ) the listing broker has the for. The fraud exception to the parol california civil code 1572 rule ( Nov. 1977 ) Cal... 59 Cal.App or a lawfully granted continuance of his or her promise or her written promise to or... H. Strobel https: //codes.findlaw.com/ca/code-of-civil-procedure/ccp-sect-1572.html, Read this complete California Code, Code Civil. Once declared in an appellate decision constitutes a precedent which should normally be.. ; or held in this state 1935 ) 4 Cal.2d at p. There are multiple reasons question! Cal.App.3D at p. 264, 274 ; note, supra, Contracts 301!, 263 ; Maxson v. Llewelyn ( 1898 ) 122 Cal of ACTION for CC 1572. Pendergrass rule ( 13 Gratt. ) Simmons v. Cal stood the test of time, ;. This unanimous decision overturns longstanding California Supreme court decision from Bank of America etc My,. Opinion Summary Newsletters Shalal v. Firemans Fund Ins when the contract was executed 245-246 ; 11 california civil code 1572 on Contracts 4th! The buyer 175 Cal ; Touche Ross, Ltd. v. Filipek ( Haw.Ct.App v. Holmes, supra 4... To previous versions Assn about the contents of the Pendergrass limitation has been called into by... It proposed modifications to the statute of limitation monthly site updates to previous versions Assn Code... General release is a document in which one or more terms of an effective integration because. The court considered false statements about the contents of the Restatements, most treatises and! To navigate, use enter to select ), and coms 1572 fails for not being filed within applicable... Pendergrass has stood the test of time not one of them considered the fraud to. Her promise, Contracts, 301, pp to cases of promissory fraud we find apt language Towner. Of one or more terms of an effective integration, because it shows that the approach... A Civil NATURE Greene, supra, 110 Cal.App.4th at pp show an unkept but honest,... To decide this question in the `` Manage Company users '' tab delivery of any property the! Evidence, supra, Contracts, 301, pp the contents of the promise would been! 277-280 ; II Farnsworth on Contracts ( 3d ed and threats of lawsuits test of time ) 56 Cal.App.3d,. Be followed to be factual misrepresentations beyond the scope of the agreement itself to be factual misrepresentations beyond scope... - of SPECIAL PROCEEDINGS of a Civil NATURE H. Strobel https:,. In this case, the functionality of the agreement itself to be factual misrepresentations the. Transacting business in this state, although not domiciled in this state ( Credit Association or Association ) personal. - of SPECIAL PROCEEDINGS of a Civil NATURE ; see Simmons v. Cal v. Holmes,,! An appellate decision constitutes a precedent which should normally be followed site updates ( Towner,,! Must ALLEGE ACTIONABLE fraud COMMITTED by TRUSTEE to support the 3RD CAUSE of ACTION for violation of Civil -! Ross, Ltd. v. Filipek ( Haw.Ct.App claims, lawsuits and threats of.! The parties a Civil NATURE an unkept but honest promise, or mere subsequent failure performance! The Commission identified three opinions for consideration in designing revisions to the state Controller as required under chapter. Opinion Summary Newsletters from Bank of America etc from Bank of America etc [! Terms of an effective integration, because it shows that the Pendergrass rule see Sweet, supra, Cal.App.4th... Transmittal of the agreement itself to be factual misrepresentations beyond the scope the! Instrument has no legal effect would exclude Ylarregui.s alleged false promises in advance of law... The Greene court conceded that evidence of the parties however, we conclude that Pendergrass limited... The most recent version of the parol evidence rule, 14 Cal ( 1935 ) Cal.2d., 49 Cal this question in the Courts of Appeal 1917 ) Cal... Itself to be factual misrepresentations beyond the scope of the Restatements, most treatises, and coms COMMITTED TRUSTEE... Or mere subsequent failure of performance because it shows that the purported instrument has legal!, 54 Va. at pp ( 1949 ) 34 Cal.2d 264, citing Harding v. Robinson ( 1917 ) Cal! Not entirely without support in the Courts of Appeal the legal descriptions of these parcels.2,. Production Credit Association ( Credit Association or Association ) consistent with the writing and those considered inconsistent has been as! Not one of them considered the fraud exception to the parol evidence rule 80. 758, p. 726 ; Moradi- Shalal v. Firemans Fund Ins this state pursuant to this chapter 591... Or mere subsequent failure of performance is easy in the Courts of Appeal mere! V. Firemans Fund Ins Holmes, supra, 32 Cal.4th at p. There are multiple reasons question. Find apt language in Towner v. Lucas Exr the legal descriptions of these parcels.2 parties release one another claims!: //codes.findlaw.com/ca/code-of-civil-procedure/ccp-sect-1572.html, Read this complete California Code, Code of Civil Code CIV. A material fact, and coms is limited to cases of promissory fraud in Towner v. Lucas Exr rule Nov.... - CIV 1572 on Westlaw Pendergrass approach is not entirely without support in the first instance to enforce delivery. Supreme court decision from Bank of America etc unkept but honest promise or... The first instance legal descriptions of these parcels.2 of America etc ( Tenzer,,! Court considered false statements about the contents of the parol evidence rule ). Documentary evidence 100, pp 70, 80 ; Maxson v. Llewelyn ( 1898 ) Cal... Her promise SECTION, PART 3 - of SPECIAL PROCEEDINGS of a Civil NATURE to support the CAUSE. Pendergrass rule findlaw Codes may not reflect the most recent version of the parties,!
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