Collins v. Parkinson

527 P.2d 1252, 96 Idaho 294, 1974 Ida. LEXIS 434
CourtIdaho Supreme Court
DecidedSeptember 5, 1974
Docket11541
StatusPublished
Cited by22 cases

This text of 527 P.2d 1252 (Collins v. Parkinson) is published on Counsel Stack Legal Research, covering Idaho Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Collins v. Parkinson, 527 P.2d 1252, 96 Idaho 294, 1974 Ida. LEXIS 434 (Idaho 1974).

Opinions

DONALDSON, Justice.

This quiet title action arises from a dispute over ownership of a piece of land involved in two distinct, conflicting transactions.

On September 15, 1965, E. J. Soelberg, respondent, entered into a real estate sale contract with Ralph and Theda Parkinson, husband and wife, who are co-respondents. The contract involved a parcel of rural land near the Arco Airport in Butte County, Idaho. This property was the community property of Soelberg and his wife Exie. Mr. Soelberg signed the contract along with Mr. and Mrs. Parkinson in 1965 and the Parkinsons have farmed it continuously since that time. Mrs. Soelberg signed the contract in 1972, after the commencement of this action, and the contract was recorded at that time.

In 1969 the Soelbergs conveyed certain unimproved land, supposedly adjacent to the land previously sold to the Parkinsons, by a quitclaim deed to Floyd and Irene Collins, husband and wife, appellants. The deed was signed by both Soelbergs and subsequently recorded in February, 1969. The deed was to complete a 1958 transaction between Mr. Soelberg and Mr. Collins. In 1958, for various considerations, Mr. Collins was to have received approximately six and one half (61/2) acres of ground near the airport from Mr. Soelberg. Collins subsequently determined that he had received only three (3) acres and sought completion of the arrangement from Soelberg. The 1969 quitclaim deed was to complete the agreement. In order to prepare the quitclaim deed, Soelberg, an attorney, instructed Collins to obtain a legal description of the land in question. The land to be conveyed was adjacent to land obtained by Collins from Soelberg in 1958 and occupied by Collins from that date. Collins obtained the description for the deed from maps and records in the county recorder’s office. Soelberg had the quitclaim deed prepared using that description.

The description in the quitclaim deed included a strip of land which had previously been included in the real estate sale contract between the Soelbergs and the Parkinsons. Thus, in 1972, the inevitable conflict arose as to which party had title to the disputed parcel of land. In July, 1972, Collins brought suit against the Parkinsons and the Soelbergs to quiet title, to enjoin the Parkinsons from trespassing on the property, and for the rental value of the property. The Soelbergs defaulted but that default was later vacated on Collins’ motion, and an amended complaint was filed asking for damages against the Soelbergs. The Parkinsons answered and cross-complained against Collins, asking the court to set over to them a certain portion of the property, and asking that title be quieted in accord with the sale contract between the Soelbergs, as sellers, and the Parkinsons, as buyers.

The trial court denied the Collins any relief, and quieted title to the portion claimed by the Parkinsons in the Soelbergs, subject to the Parkinsons’ rights under the contract of September 15, 1965. The Collins now appeal from that decree.

In essence, the trial court reformed the 1969 quitclaim deed to exclude the strip of land in controversy. The trial court found the inclusion of the parcel to be a mutual mistake between grantor and grantee and therefore amended the deed to conform with the intentions of the parties. Although appellants present numerous assignments of error, it is necessary to consider only four issues. These are as follows: (1) did the trial court properly consider the remedy of reformation, (2) was parol evidence properly admitted to the issue of mutual mistake, (3) was the standard of evidence as to mutual mistake met by the [296]*296respondents, and (4) must the evidence of mutual mistake in the conveyance of community property extend to both the husband and the wife.

Before discussing the specific issues, it is necessary to outline the remedy of reformation. Idaho courts have long recognized reformation of instruments to be a proper remedy, given the necessary circumstances. Houser v. Austin, 2 Idaho 204, 10 P. 37 (1886); Bilbao v. Krettinger, 91 Idaho 69, 415 P.2d 712 (1966). In utilizing the remedy, the court is not making a new contract, but rather enforcing the agreement the parties would have made but for the mistake. Exum v. Portneuf-Marsh Valley Irr. Co., 38 Idaho 155, 220 P. 112 (1923). Therefore a court is acting properly in reforming an instrument when it appears from the evidence (the standard of which will be discussed below) that the instrument does not reflect the intentions of the parties and that such failure is the product of a mutual mistake, a mistake on the part of all parties to the instrument.

We turn now to the specific issues. First, the appellants contend that the trial court erred in reforming the deed due to mutual mistake because such theory was not presented in the pleadings. This contention is incorrect. Issues not raised by the pleadings yet tried by express or implied consent of the parties are to be treated as though they had been raised in the pleadings. I.R.C.P. 15(b). The record indicates no objection to the inquiries as to the issue of mistake in preparation of the quitclaim deed. Therefore the issue was properly raised at trial. Moreover, the remedy of reformation was properly utilized by the trial court because the final judgment in an action is to afford the prevailing party the relief to which he is entitled even if that relief is not demanded in the pleadings. I.R.C.P. 54(c); Nab v. Hills, 92 Idaho 877, 452 P.2d 981 (1969).

Second, the appellants urge a finding of error in the admission of parol evidence to modify a written instrument. The contention is also not tenable in regard to questions of mutual mistake. The parol evidence rule applies only to integrated writings, and if the mistake is mutual the writing is not integrated. Therefore parol evidence is admissible in this instance. G. Bell, Handbook of Evidence for the Idaho Lawyer, at 197 (2d ed. 1972); Bilbao v. Krettinger, supra; Gould v. Frazier, 48 Idaho 798, 285 P. 673 (1930).

Third, we come to the standard of evidence necessary to find a mutual mistake. The party alleging the mistake has the burden of proving it. Metropolitan Life Ins. Co. v. McClelland, 57 Idaho 139, 63 P.2d 657 (1936). This burden will be met only by a showing of mutual mistake by clear and satisfactory evidence, a mere preponderance of evidence will not suffice. Metropolitan Life Ins. Co. v. McClelland, supra; Exum v. Portneuf-Marsh Valley Irr. Co., supra. In this case the trial court found clear and satisfactory evidence indicating that Mr. Collins and Mr. Soelberg intended an agreement different from that embodied in the quitclaim deed. Mr. Collins was seeking approximately three (3) acres to complete the 1958 arrangement. Mr. Soelberg was willing to convey all the land of his remaining unencumbered in that immediate area, this parcel being somewhat greater than three (3) acres. As noted above, the Parkinsons had been on the land for four years prior to the negotiations for the quitclaim deed. Mr. Soelberg clearly knew of his contract with the Parkinsons. Collins had observed the Parkinsons on the land, farming, making improvements, generally exercising the rights of ownership. It cannot be said as a matter of law that Mr. Soelberg and the Collins intended to include in their agreement the land occupied by the Parkinsons.

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Bluebook (online)
527 P.2d 1252, 96 Idaho 294, 1974 Ida. LEXIS 434, Counsel Stack Legal Research, https://law.counselstack.com/opinion/collins-v-parkinson-idaho-1974.