Georgia Farm Bureau Mutual Insurance v. Wall

249 S.E.2d 588, 242 Ga. 176, 1978 Ga. LEXIS 1132
CourtSupreme Court of Georgia
DecidedSeptember 7, 1978
Docket33639
StatusPublished
Cited by35 cases

This text of 249 S.E.2d 588 (Georgia Farm Bureau Mutual Insurance v. Wall) is published on Counsel Stack Legal Research, covering Supreme Court of Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Georgia Farm Bureau Mutual Insurance v. Wall, 249 S.E.2d 588, 242 Ga. 176, 1978 Ga. LEXIS 1132 (Ga. 1978).

Opinions

Hill, Justice.

E. B. Wall and his son Hugh Wall1 filed suit in the Superior Court of Schley County on March 23, 1973, seeking to reform the coverage provisions of an insurance contract issued by the defendant, Georgia Farm Bureau Mutual Insurance Company, on the basis of alleged mutual mistake. The insurance company answered and subsequently filed a motion for summary judgment which was granted. On appeal, this court reversed (Wall v. Ga. Farm Bureau Mut. Ins. Co., 238 Ga. 275 (232 SE2d 555) (1977)), finding that there were genuine issues of material fact to be tried.

E. B. Wall amended his complaint to add a second count realleging the allegations in the original complaint and seeking recovery of damages for breach of the policy as it would be when reformed. Pursuant to a stipulation of the parties, the two matters were severed. Upon the trial of the reformation issue, the jury returned a general [177]*177verdict for the plaintiff and the trial court entered an order that the insurance contract be reformed.

1. Following Code Ann. § 81A-154 (b), the trial court included in its order the required express direction entering final judgment on Count 1 and the required express determination that there was no just reason for delay in the entry of final judgment. Such certification is appropriate where, in the words of Code Ann. § 81A-154 (b), "more than one claim for relief is presented in an action . .Here, however, the trial court erred in ruling that the two "counts” (for reformation of the policy and damages for breach of the reformed policy) were separate claims. A suit for reformation and damages for breach of the reformed contract constitutes only one claim for relief.2 In cases such as this, however, where the trial court erroneously enters a certification pursuant to Code Ann. § 81A-154 (b), this court may treat the certification as one entered pursuant to Code Ann. § 6-701 (a) (2).3 Having so considered this matter, the court hereby grants the application for interlocutory appeal and considers the errors enumerated.

2. The jury was authorized by the evidence to find the following facts: The defendant issued to plaintiff a farmowner’s insurance policy covering plaintiffs house and appurtenant structure and certain other buildings, for a period of twelve months. The house and its appurtenant structure were covered against damage caused by ice and snow. When issued, the policy did not cover plaintiffs poultry and brooder houses and [178]*178equipment. Plaintiff sought and later obtained an endorsement to coyer his poultry houses. When defendant’s agent inspected these houses to prepare the endorsement, plaintiff requested and, according to plaintiffs testimony, defendant’s agent stated that the endorsement would provide coverage for damage caused by ice and snow. Also according to plaintiffs testimony, the agent’s statement as to coverage was repeated when the endorsement was delivered. Plaintiff did not read the endorsement. Thereafter the buildings were severely damaged by ice and snow while the policy was in effect. Plaintiff testified further that when this loss was reported, the agent again said that the poultry houses were covered. The agent’s testimony contradicted that given by plaintiff, his wife and son.

Before decreeing reformation "The authorities all require that the parol evidence of the mistake and of the alleged modification must be most clear and convincing, —in the language of some judges, 'the strongest possible,’ —or else the mistake must be admitted by the opposite party ...” 3 Pomeroy, Equity Jurisprudence, § 859a (5th Ed. 1941). Harp v. Bacon, 222 Ga. 478, 483 (150 SE2d 655) (1966); Hartford Acc. &c. Co. v. Walka Mountain Camp No. 565, 224 Ga. 194 (160 SE2d 833) (1968). Although the evidence as to the mistake must be clear, unequivocal and decisive (Code § 37-202), there is no rule that reformation will be denied unless the mistake be admitted by both parties.

The defendant objected to testimony by the plaintiff that the defendant’s agent said the plaintiff had "coverage” or was "covered” against ice and snow damage. Defendant objected to such testimony on the grounds, among others, that it was a legal conclusion and the ultimate issue in the case, that the agent was not authorized to enter into such a contract, and that such testimony violated the parol evidence rule. Regardless of what the rule may be as to a party testifying as to a legal conclusion (the ultimate issue in the case) in his favor, a party generally is permitted to testify that his opponent made a legal conclusion against himself; i.e., made an admission against interest (in an auto accident case, the plaintiff could testify that the defendant said: "I’m sorry; [179]*179it was my fault”). Green, Georgia Law of Evidence, §§ 113, 234, 242 (1957).

The evidence does not show that the agent lacked authority to write insurance against ice and snow damage. In fact he wrote such insurance as to the farm dwelling in this case and was authorized to do so as to other farm buildings. Defendant may be arguing that its agent lacked authority to enter into any contract not shown by the writing. However, as has often been said, corporations act only through agents, and such a rule in this case would insulate all corporations from suits for reformation of their contracts. We have found no case holding that insurance contracts are immune to suits for reformation. See Aetna Cas. &c. Co. v. Horton, 232 Ga. 355 (206 SE2d 487) (1974); Great Am. Indem. Co. v. Southern Feed Stores, Inc., 184 Ga. 560 (192 SE 1) (1937); Niagara Fire Ins. Co. v. Jordan, 134 Ga. 667 (68 SE 611) (1910).

In a suit for reformation of contract based upon alleged mutual mistake, the parol evidence rule does not bar introduction of testimony as to the oral agreement reached by the parties which the writing was intended to reflect. Cotton States Life Ins. Co. v. Carter, 65 Ga. 228 (1880); Green v. Johnson, 153 Ga. 738 (7) (113 SE 402) (1922).

The statements made by the insurance company’s agent, as testified to by the plaintiff, as to what the policy would cover, were not inadmissible as relating to future events. Moreover, the plaintiff’s son testified that in the midst of the storm he reported the loss being incurred and the agent said that the poultry houses were covered against loss due to ice and snow but they might as well wait until the storm was over before inspecting the damage.

The defendant urges that the plaintiff could read and that by failing to read the endorsement in conjunction with the policy, he is estopped by his own negligence from obtaining reformation. The failure of a party to read a contract which is not signed by that party, such as a policy of insurance, does not bar reformation as a matter of law. Niagara Fire Ins. Co. v. Jordan, supra; Overland Southern Motorcar Co. v. Maryland Cas. Co., 147 Ga. 63, 66-69 (92 SE 931) (1917). In the Niagara Fire Ins. Co. case, supra, the [180]*180court said (134 Ga. at 671): "It is contended that the plaintiffs failure to inspect the policy which was in his possession for nearly three months amounts to such laches and negligence on his part as to preclude any right of reformation of the policy. The trend of authority is that a, mere failure of the insured to read his policy does not amount to such laches as will debar him from having such policy reformed for mistake therein.

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Bluebook (online)
249 S.E.2d 588, 242 Ga. 176, 1978 Ga. LEXIS 1132, Counsel Stack Legal Research, https://law.counselstack.com/opinion/georgia-farm-bureau-mutual-insurance-v-wall-ga-1978.