Haugh v. Lanz

187 Iowa 841
CourtSupreme Court of Iowa
DecidedMay 14, 1919
StatusPublished
Cited by14 cases

This text of 187 Iowa 841 (Haugh v. Lanz) is published on Counsel Stack Legal Research, covering Supreme Court of Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Haugh v. Lanz, 187 Iowa 841 (iowa 1919).

Opinions

Gaynor, J.

This action was begun by the plaintiff, Myrtle Haugh, to reform a certain written instrument, entered into between her and the defendants. The defendants appeared, and filed answer and cross-petition, making the husband of Myrtle Haugh a party. In their answer, defendants deny the right of plaintiff to a reformation of the written contract, and in a cross-petition, pray for the enforcement of the contract as made, against the plaintiff and her husband. The relationship of the parties is a material matter. The plaintiff is the daughter of one Herman Lanz. The defendant Hattie Lanz is his widow. Defendants Herman and Colen Lanz are his sons. His estate is valued at about $21,000. The defendants, Herman, Colen, and the widow, desire to purchase the interests of all the heirs. They have purchased the interest of all the others, and paid to each $3,100. They then entered into this written contract with Myrtle Haugh, to purchase her interest at the same figure. This is the contract which Myrtle Haugh, the plaintiff, asked to have reformed, and this is the contract which the defendants wish to have enforced. It provides that the plaintiff, Myrtle Haugh, shall take, in full settlement of her interest in her father’s estate, and the defendants shall pay her therefor, the sum of $3,100, to be secured by a mortgage on the Clem Starrett 80, to be executed and [843]*843delivered on the 1st day of March, 1914, said $3,100 to be payable on or before 5 years from that date, and to draw 5 per cent interest from March 1, 1914; that, upon the signing of this contract, plaintiff shall sign a deed conveying all her interest in the real and personal property of her father, Herman Lanz, to the defendants; and that, upon the execution of this instrument, it shall evidence an indebtedness of $3,100 from the defendants to the ‘plaintiff.

Plaintiff prays to have this written contract reformed, so as to conform to what she claims to be the real contract entered into between her and the defendants, and she asks to have it reformed so as to make the interest payable annually, and to provide that the mortgage be a first mortgage upon the Starrett land. A decree was entered, dismissing plaintiff’s petition and defendants’ cross-petition. Both parties appeal. Defendants, having first appealed, are denominated appellants.

We will dispose of plaintiff’s appeal first, and this may be thus disposed of:

l. reformation OF INSTBUmbnts: evideuce: weight and sufficiency. The contract, having been reduced to writing, is presumed to contain the agreement of the parties, and if she would have it speak other than it does, she must satisfy the court, by clear and satisfactory evidence, that the writing does not contain the true contract entered into between the parties, r We are satisfied, from an examination of the record, that she has not done this. The contract was written as the parties had talked, prior to the writing. There was no mistake or fraud in its making. It expressed just what the parties then intendea it should express, no more and no less. They recorded in the instrument just what they intended the writing should say. The parties were all familiar with the situation. They knew and understood just what the contract was, that they had entered into, and what obligations they assumed in the [844]*844contract. This is manifest from the interpretation which has been placed upon the contract by the parties themselves. It appears that she has tendered to the defendants a deed to her interest in her father’s estate, in fulfillment of the contract, and the defendants have tendered her a mortgage, with interest payable annually, according to the tenor and effect of this promissory note, providing for the payment of interest annually. So it appears that defendants have undertaken to, and offered to, and desired to, execute their part of the agreement in accordance with the contention of the plaintiff, and have tendered performance to her by executing to her a note, with interest payable annually, and a mortgage to secure the same, according to. the terms of the contract, with interest as stipulated in the note.

Her claim that the contract should provide for a first mortgage is not only disproven by a preponderance of the oral testimony, but is negatived by the facts and circumstances disclosed in the record. She practically concedes that a second mortgage is ample security to her for the payment of the $3,100, and also that she knew, at the time the writing was executed, that there was already a mortgage upon the premises. This is a circumstance negativing her claim that the contract in this respect should read other than it does. She executed a quitclaim deed to the defendants, without demanding a reformation of the contract, and defendants have tendered to. her a note and mortgage, with provision for interest as urged by her.

[845]*8452. Reformation OF INSTRUMENTS : grounds: tender of performance before suit. [844]*844It appears that defendants, before the commencement of this action, were ready, able, and willing to perform the contract on their part in accordance with the contention of [845]*845the plaintiff, and have tendered her a note and mortgage, with interest payable annually. There is no occasion for the interposition of equity upon this contention of the plaintiff’s. The note and mortgage were executed on the 1st day of March, 1914. The suit was not commenced until the 29th day of April, 1914. On the 6th dáy of March, 1915, defendants paid the plaintiff the first year’s interest, $155, and this was accepted and retained by her as a payment made in part fulfillment of the contract which she seeks to reform.

s. reformation OF INSTBÜments : eyi- • deuce: weight and sufficiency, As has been frequently said by this court, the evidence that justifies the reformation of a written contract must be clear and satisfactory. Written instruments entered into between parties are not to be lightly set aside or changed, and never should be unless the evidence is clear and convincing. It has been said by this court that a contract will not be reformed in equity where neither party intended that any different words should be used from those which were employed. To reform a writing on the ground of mistake, it must appear that there is a mistake in the writing, and the evidence to show this must be clear, satisfactory, and free from reasonable doubt. More than a mere preponderance of the evidence is required to sustain a decree for the reformation of a written instrument. It has further been said that a court will not disturb the provisions of a written agreement unless there is clear and convincing evidence that the instrument does not set forth the true intent of the parties, and that the failure to make it express such intent arose from oversight, or mistake in drafting. The general rule seems to be that the proof necessary must be almost sufficient to establish the right to a reformation beyond a reasonable doubt.

[846]*846We think the court did not err in refusing to reform the contract, and in dismissing plaintiff’s petition.

*' oraiEagreement: band’s' agreewif?sa properBpéciflc°per-‘ formance. This brings us to a consideration of defendants’ cross-petition. This presents more difficulty, and the disposition of the matter involves us in a difference of opinion. The controversy upon this issue centers upon the plaintiff’s husband, Charlie Haugh.

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Bluebook (online)
187 Iowa 841, Counsel Stack Legal Research, https://law.counselstack.com/opinion/haugh-v-lanz-iowa-1919.