Smith, Irvine Co. Nearing Accord, Attorney Says : Dispute: After eight years of litigation, the sides are eager to settle. Disbursement is the chief stumbling block.

Lawyers for the Irvine Co. and Joan Irvine Smith continued to negotiate Monday over how to end an eight-year-long dispute involving hundreds of millions of dollars, and a lawyer for Smith said an agreement could come in a few days.

Smith, the granddaughter of the company’s founder, forced the big developer to sue her in 1983 after agreeing to sell her stock to company owner Donald L. Bren but rejecting his offer of $115 million. Smith wanted $363 million.

Both sides claimed victory when a court referee decided a year ago that Smith should get $150.5 million.

Since then, subsequent rulings have gone against Smith.

She wanted a compound interest rate on her money of 11.5% over the eight years the case has dragged on; the company said it should be 9.16% simple interest. The referee awarded 9.22% simple interest.

She had asked for $17 million in attorneys’ fees. The referee didn’t award her any fees.

With interest, the company now owes her about $253 million.

Had she prevailed, the amount would have been closer to $600 million.

Since these last rulings in the spring, Smith said she was ready to give up going for the $600 million and call an end to the case. Turning up the heat on the company to settle quickly, she announced that she would give away millions from the award to nonprofit groups.

The company is also eager to settle and avoid more litigation and uncertainty. While lawyers for both sides won’t talk about the negotiations, it’s probable that one of the major sticking points is how soon Smith could be paid the quarter of a billion dollars.

The company said it had made arrangements years ago to borrow the money to pay Smith. But paying the entire sum at once could put a strain on even the giant developer, which owns about a sixth of the land in Orange County.

The case was heard by a court-appointed referee--so as not to tie up a judge for years--in Michigan, where the company is incorporated. The courts have yet to formally ratify his report, and indeed both sides had until Monday to file objections.

To cover itself in case the talks with Smith fell apart, the Irvine Co. filed its objections Monday. As reported earlier, the main objection is to the way the referee calculated the tax impact of the sale.

If upheld, that would make a difference of $17 million or so in the amount Smith was awarded. Likewise, the company’s other objections to the referee’s report were relatively minor.

Smith had filed her objections earlier. But both could become moot if the compromise is accepted this week.