This section contains the nature of the case and procedural background.

Neary (P) sued the Regents of the University of California (D) for libel and won a $7-million-dollar judgment. D published a report about P that claimed he engaged in deficient ranch management that caused the death of many of P's cattle. P contended that the deaths were from government pesticide spraying used to control an infestation of scabies mites. Both parties appealed and while that was proceeding they agreed to a settlement of the case wherein P would be paid $3 million if the appeals would be dismissed with prejudice. The Court of Appeals rejected the request for a stipulated reversal of the lower court’s ruling and a dismissal with prejudice.

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