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Page Atkinson and Emerson Atkinson, Appellees, v. J. A. Darling, Appellant

Kansas Supreme Court1920-07-10No. No. 22,474
107 Kan. 229

Summary

Holding. The judgment is affirmed. The trial court properly exercised its authority to set aside the jury's verdict and grant a new trial where evidence supported reformation of the written lease for mutual mistake, despite the tenant's contention that only one party was mistaken.

The landowners offered a property at public auction and promised the successful bidder a five-year lease on adjacent arable land and sixty acres of pasture. The owners intended to reserve forty acres of their pasture for their own farming purposes during the lease term, but this reservation was accidentally omitted from the written lease document. During the first year, the owners retained the forty acres and farmed it themselves. When the tenant attempted to farm those acres in the second year, the owners objected and brought suit to reform the lease to include the reservation.

At trial, the tenant denied that any reservation was agreed upon and claimed he understood the lease to grant him full access to all sixty acres. A jury found in the tenant's favor with nominal damages of one dollar. The trial court rejected this verdict and granted the owners a new trial. The tenant appealed, arguing that a contract cannot be reformed based solely on one party's mistake and that he fully understood the agreement as written.

The court upheld the trial court's decision to grant a new trial. The court determined that the evidence could support a finding of mutual mistake—the written lease simply did not express what the parties had actually agreed upon regarding the forty-acre reservation. The court noted that even if the tenant noticed the error when signing but remained silent, equitable reformation would still be appropriate because his silence could constitute constructive fraud. The trial court had proper authority under applicable law to set aside the verdict and order a new trial.

Summary generated by law.co from the public-domain opinion. The opinion text itself is public domain.

Key issues

  • Whether a written lease can be reformed when one party claims mutual mistake but the other denies any mistake occurred
  • Whether clear and convincing evidence of mutual mistake can be established without the testimony of the party resisting reformation
  • Whether a party's silence upon discovering a scrivener's error constitutes constructive fraud warranting equitable reformation

Procedural posture

The owners appealed from the trial court's grant of a new trial after a jury verdict in favor of the tenant-lessee in a suit to reform the lease and enjoin the tenant from the disputed forty acres.

Authorities cited

No cited authorities resolved to law.co cases yet.

Opinion

majority opinion

The opinion of the court was delivered by

Dawson, J.:

This was a suit to reform a written lease and to enjoin the tenant from entering upon some lands which by mistake had been included in the lease.

The plaintiffs held a public auction at which they offered one hundred acres of land for sale, and as an inducement to its sale they offered to give the purchaser a lease for five years on some adjacent arable land and on sixty acres of pasture land. The plaintiff’s pasture contained about one hundred acres, but they intended to reserve forty acres of the pasture for the purpose of breaking it and putting it into crops themselves. The defendant was the successful bidder for the land offered for sale. When the lease was prepared, no reservation of the forty acres of the pasture land which plaintiffs intended to break and farm themselves was inserted in the lease. During the first year covered by the lease, however, the plaintiffs did retain possession of the forty acres, and did break it and farm it. Next year, the tenant attempted to commence farming operations. Plaintiffs objected, and he advised them to read the lease. They did, and this lawsuit followed. The defendant’s answer denied the pertinent matters pleaded by plaintiffs; and alleged that the forty acres was only withheld from the lease for one year so as to enable plaintiffs to break it and prepare it for tillage by the tenant for the remainder of the five-year •term. Defendant also cross claimed for damages for his exclusion from the forty acres during the second year of the lease.

A jury was called to advise the trial court on the equitable issues and to determine the issue of damages. The special findings, and a verdict for $1 as damages, were in favor of defendant. Defendant’s motion for judgment on the findings and verdict was denied; and plaintiffs’ motion for a new trial was granted.

Defendant appeals. He contends that a contract cannot be reformed for the mistake of one party only; that he fully understood the contract; and that there was no mutual mistake. But the trial court may have thought he was not telling the truth about the matter. Perhaps the trial court did not fully believe the testimony for either party. We cannot tell what prompted the trial court to grant a new trial. The plaintiffs’ evidence was sufficient to prove a mutual mistake — if the trial court gave it full credence. Perhaps the court did believe it; perhaps the trial court heartily disagreed with the findings of its advisory jury. One thing is certain: the written contract did not express the terms of the parties. It did not cover the reservation of the forty acres even for the one year which de fendant admits to have been reserved. There was to be a reservation of that forty acres, whether for the full term of the lease or for one year only; and to that extent there was a mutual mistake. Moreover, no written instrument which fails to truly recite the bargain of the parties could ever be reformed for mutual mistake if the one who resists its reformation could defeat its correction by his mere self-serving avowal that there was no mistake on his part. While the evidence to justify a reformation of a written instrument on the ground of mutual mistake must be clear, decisive and convincing, yet it. may be so proved — and usually has to be — without the evidence of- the party who resists and seeks to profit by the alleged mutual mistake. Furthermore, if indeed the forty acres was to be-reserved for the full duration of the lease, and the defendant noticed the mistake of the scrivener at the time the lease was executed, and if he purposely or thoughtlessly kept silent about it, the want of mutuality in the matter of the mistake would not stay the hand of a court of equity to correct the writing, as the attitude of defendant in such case would be treated as a constructive fraud on his part. (Cox v. Beard, 75 Kan. 369, 89 Pac. 671; Simpson Plumbing & Heating Co. v. Geschke, 76 N. J. Eq. 475.)

The other matters urged by defendant need no discussion now. If the trial court, for any reason covered by the code (Civ. Code, §§ 305-308), was dissatisfied with the jury’s verdict, it was its duty to set that verdict aside, and to grant a new trial. Ordinarily it is only when the trial court indicates the exclusive and specific ground upon which a new trial is granted, and that ground happens to be one which this court is in as good a position to consider and determine as the trial court, that reversible error can be effectively based upon the granting of a new trial. (Ryan v. Topeka Bridge Company, 7 Kan. 207; Howell v. Pugh, 25 Kan. 96; City of Sedan v. Church, 29 Kan. 190; Sanders v. Wakefield, 41 Kan. 11, 14 Pac. 251; Manufacturing Co. v. Bowers, 71 Kan. 260, 80 Pac. 565; Goehenour v. Construction Co., 104 Kan. 808, 810, 180 Pac. 776; Moffatt v. Fouts, 105 Kan. 58, 181 Pac. 557.)

Affirmed.