Colangelo v. Cashelmara Co.

8 Ohio App. Unrep. 326
CourtOhio Court of Appeals
DecidedNovember 21, 1990
DocketCase No. 57581
StatusPublished

This text of 8 Ohio App. Unrep. 326 (Colangelo v. Cashelmara Co.) is published on Counsel Stack Legal Research, covering Ohio Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Colangelo v. Cashelmara Co., 8 Ohio App. Unrep. 326 (Ohio Ct. App. 1990).

Opinion

MATIA, P.J.

Defendants-appellants, Cashelmara Co., et al., appeals from the judgment of the trial court granting reformation of contract.

I. THE FACTS

A. THE MUTUAL MISTAKE OF BOTH PARTIES

On June 20, 1984, plaintiff-appellees James and Carol Colangelo (hereinafter appellees) entered into a purchase agreement with defendants-appellants, Cashelmara Co., et al. (hereinafter appellants), to purchase condominium unit number 39, described as "containing approximately 2,000 square feet." The agreed purchase price of the condomini[327]*327urn was One Hundred Dollars ($100.00) per square foot.

In early 1985 appellees discovered that the unit was listed in the Condominium Association's Declarations and Bylaws as being 1,700 square feet. This discrepancy could not be settled satisfactorily between the parties and their attorneys.

B. THE BENCH TRIAL TO THE COURT OF COMMON PLEAS

In December 1988, the claim was tried to the court, which determined that a mutual mistake existed between the parties because of the definition used by the parties to determine the square footage of the condominium.

The trial court reformed the contract and awarded the appellees the difference between what was paid at 2,000 square feet and the actual footage of 1,700 square feet.

C. THE VERDICT

In December 1988, the claim was tried to the court which found for the appellees against the appellants Cashelmara Co., Robert Corna, individually; the Estate of Spartico DiBenedetto; the Estate of Spartico DiBenedetto as Trustee; and Patricia Corna as Trustee.

Appellees were awarded $30,000 for their overpayment of the purchase price plus interest from June 20, 1984.

D. THE TRIAL COURT'S JUDGMENT

"Judgment for appellees. Appellees are entitled to $30,000 reduction in the agreed upon sale price to reflect the 300 square foot difference between what the parties believed the unit to contain and its actual size. Appellees are further entitled to prejudgment interest on the $30,000 from June 30, 1984 at the rate of 10% per annum. Appellees are entitled to judgment against Cashelmara Co. and each individual partner as required by Ohio Revised Code Section 1775.14."

E. APPELLANTS' TIMELY APPEAL

Thereafter, the appellants timely brought the instant appeal from the judgment based on reformation of contract, and the judgment of the trial court.

II. THE FIRST ASSIGNMENT OF ERROR

The appellants' first assignment of error is that:

"THE TRIAL COURT ERRED TO THE PREJUDICE OF DEFENDANTS-APPELLANTS IN GRANTING JUDGMENT FOR THE PLAINTIFFS, SUCH JUDGMENT BEING AGAINST THE MANIFEST WEIGHT OF THE EVIDENCE."

The appellants, in their first assignment of error, argue that the trial court erred by reforming the contract between the parties. Specifically, the appellants argue that there was no clear and convincing evidence that because of mutual mistake, the writing did not express the intention of the parties.

This assignment of error is not well

REFORMATION OF CONTRACT

Reformation of contract is available upon clear and convincing evidence. Restatement of Law 2d, Contracts (1932), Section 155, Comment a In actions such as this where reformation of an instrument is sought, the mistake and its mutuality, set up as a ground for such reformation, must be proved by clear and convincing evidence. Farr v. Ricker (1889), 46 Ohio St. 265.

The mere fact that at the time of trial the appellants' and appellees' testimony differs as to what their agreement was does not necessarily mean that there was no agreement between them; nor does it necessarily mean that they were not mutually mistaken concerning the expression of their agreement in the instrument. Castle v. Daniels (1984), 16 Ohio App. 3d 209.

The province of reformation is to make a writing express the agreement that the parties intended. Restatement of the Law 2d, Contracts (1981) 406, Section 155, Comment a.

The written purchase agreement which both parties signed was based on a purchase price of $100.00 per square foot. The parties understood that the square footage of a unit was calculated based upon the usable living area of the unit. Appellants were of the belief that the unit would have approximately 2,000 square feet of living area. The appellees were under the same belief and the 2,000 square feet became a basis for calculating the price of the unit. (Tr. 79, 82-83.)

The actual size of the unit as stated in the Declarations and Bylaws of the Condominium Association, and also according to expert testimony, is approximately 1,700 square feet. (Tr. 118; Trial Exhibit 6.)

The purchase agreement as written does not express the true agreement between the parties by reason of their mutual mistake [328]*328concerning the size of the unit. Once the existence of mutual mistake is established, it is within "the province of reformation to make a writing to express the agreement that the parties intended it should." Castle v. Daniels, supra.

B. CONCLUSION

Therefore, the trial court did not err in reforming the contract to reflect the understanding of the parties, to wit: "that the sale price based on $100.00 per square feet and a square footage of 1,700 square feet in an amount reduction of $30,000.00."

Thus, upon review of the record, the trial court's decision is sufficiently supported by the evidence and the trial court did not err in finding that the appellees had met their burden of proving mutual mistake. Finding mutual mistake, it was within the province of the court to reform the contract to correctly state the intention of the parties.

Consequently, the appellants' first assignment of error is not well taken.

III. THE SECOND ASSIGNMENT OF ERROR

The appellants' second assignment of error is that:

"THE TRIAL COURT ERRED TO THE PREJUDICE OF DEFENDANTS-APPELLANTS ROBERT CORNA, INDIVIDUALLY; THE ESTATE OF SPARTICO DIBENEDETTO; THE ESTATE OF SPARTICO DIBENEDETTO AS TRUSTEE; AND PATRICIA CORNA AS TRUSTEE BY ENTERING JUDGMENT AGAINST THEM DIRECTLY (AS PARTNERS IN DEFENDANT CASHELMARA CO.)."

The appellants, in their second assignment of error, argue that the trial court erred by entering judgment against Robert Corna, individually; the Estate of Spartico DiBenedetto; the Estate of Spartico DiBenedetto as Trustee, and Patricia Corna as Trustee. Specifically, the appellants argue that no evidence presented at trial invalidated the contractual provision limiting liability to Cashelmara Co.

This assignment of error is not well taken.

R.C. 1775.14 provides that partnerships are jointly and severally liable. The provisions of R.C. 1775.14 state that subject to section 1339.65 of the Revised Code, all partners are liable as follows:

"...a) jointly and severally for everything chargeable to the partnership under sections 1775.12 and 1775.13 of the Revised Code; and

"b) jointly for all other debts and obligations of the partnership, but any partner may enter into a separate obligation to perform a partnership contract."

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Related

Lewis v. Joseph Hartley & Sons Co.
83 N.E.2d 438 (Indiana Court of Appeals, 1949)
Paine v. . Upton
87 N.Y. 327 (New York Court of Appeals, 1882)
Castle v. Daniels
475 N.E.2d 149 (Ohio Court of Appeals, 1984)

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8 Ohio App. Unrep. 326, Counsel Stack Legal Research, https://law.counselstack.com/opinion/colangelo-v-cashelmara-co-ohioctapp-1990.