Frances McDormand and Joel Coen, the Oscar-winning acting and directing duo who have participated in community life since purchasing a home in Bolinas in 2005, sued their neighbors last month amid a years-long property line dispute. 

The lawsuit, filed in Marin Superior Court on Oct. 31, alleges that Donna and Randolph Rush failed to make good on a settlement agreement reached last May that drew a new line between the properties, which lie on the…