McBride v. Johnson Oil & Tractor Co.

279 S.E.2d 117, 52 N.C. App. 513, 1981 N.C. App. LEXIS 2450
CourtCourt of Appeals of North Carolina
DecidedJune 16, 1981
DocketNo. 8022SC1036
StatusPublished
Cited by4 cases

This text of 279 S.E.2d 117 (McBride v. Johnson Oil & Tractor Co.) is published on Counsel Stack Legal Research, covering Court of Appeals of North Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
McBride v. Johnson Oil & Tractor Co., 279 S.E.2d 117, 52 N.C. App. 513, 1981 N.C. App. LEXIS 2450 (N.C. Ct. App. 1981).

Opinion

HILL, Judge.

Defendant Johnson Oil and Tractor Company relies upon Battle v. Clanton, 27 N.C. App. 616, 220 S.E. 2d 97 (1975), cert. denied, 289 N.C. 613, 223 S.E. 2d 391 (1976), to support the summary judgments herein. The Battle case involved an automobile accident in which the plaintiff filed a complaint against defend[515]*515ants Stallings, Clanton and Joyner. Plaintiff settled his claims against defendants Clanton and Joyner and executed a release. This instrument released Clanton and Joyner and “all other persons, firms, or corporations who are or might be liable, from all claims of any kind or character which I have or might have against it, him or them . . The trial court then allowed summary judgment dismissing plaintiff’s claim against defendant Stallings on the basis of this release, and plaintiff appealed. This Court affirmed, holding “that the subject release, by its express terms, provided for the discharge and release of all other tort-feasors from all other claims resulting from the subject release on 10 August 1974, including both the defendant Stallings and his insurer, Nationwide Mutual Insurance Company.” Id. at 621, 220 S.E. 2d at 100. The plaintiffs in the present case urge us to overrule Battle in favor of “the modern trend of decisions in other jurisdictions.” This we refuse to do. We reaffirm the holding of Battle. We agree, however, with the plaintiffs’ alternative argument to the effect that the present case is distinguishable from Battle.

The plaintiff in Battle argued that the release therein was not intended to release anyone other than Clanton and Joyner and that the critical phrase quoted above was “mere surplusage.” In the present case, the plaintiffs have amended their complaints in order to allege that the critical phrase was inserted in the releases through mutual mistake, and they have prayed for reformation of the releases in order to delete the phrase. Further, they have presented affidavits in support of their allegations of mutual mistake. No such issue of reformation was presented in the Battle case.

An instrument which fails to express the true intention of the parties may be reformed to express such intention when the failure is due to the mutual mistake of the parties, to the mistake of one party induced by fraud of the other, or to mistake of the draftsman. Parker v. Pittman, 18 N.C. App. 500, 197 S.E. 2d 570 (1973). Such a mutual mistake of the parties may be one relating to the legal effect of the instrument. Where, by reason of an error of expression or mistake as to the force and effect of the language used, an instrument fails to express the intent of the parties, equity will afford relief. Trust Co. v. Braznell, 227 N.C. 211, 41 [516]*516S.E. 2d 744 (1947); 13 Williston on Contracts, § 1585 (3rd ed. 1970); 66 Am. Jur. 2d, Reformation of Instruments § 19 (1973).

In Trust Co. v. Braznell, supra, two of the defendants conveyed a building to the third defendant by a deed which included a provision purporting to protect the leases of existing tenants, including the plaintiff. The new owner thereafter refused to recognize plaintiffs lease, and plaintiff sued. The evidence at trial tended to show that it was understood and agreed that the deed should protect the tenants’ leasehold rights but that this intention was inadequately expressed. Judgment was entered for the plaintiff and the Supreme Court found no error. The Supreme Court wrote:

A bare, naked mistake of law affords no grounds for reformation. This, however, is the general rule, qualified by many exceptions. [Citations omitted.]
Where the error of law induces a mistake of fact, that is, where, by reason of an error of expression or mistake as to the force and effect of the language used, the contract fails to express the intent of the parties, equity will afford relief. [Citations omitted.]
“The phrase ‘mutual mistake’ means a mistake common to all the parties to a written instrument and usually relates to a mistake concerning its contents or its legal effect.” [Citation omitted.] “It is wholly immaterial whether . . . the parties failed to make the instrument in the form they intended, or misapprehended its legal effect.” [Citations omitted.]
All the parties conceived that the language used adequately protected the outstanding leases. This was a mistake of law. They intended to include in the deed a provision which would fully protect plaintiff and other tenants. By reason of the use of language mistakenly believed to be, but which was not, sufficient to accomplish the common purpose, such provision does not appear in the deed. They intended the deed to include what it does not include. This constitutes a mistake of fact justifying reformation.

Id. at 214-15, 41 S.E. 2d at 746-47.

In Durham v. Creech, 32 N.C. App. 55, 231 S.E. 2d 163 (1977), this Court dealt with a conveyance of land in which the parties in[517]*517tended to reserve a life estate for the grantors but the instruments as executed failed to do so. In reversing a directed verdict for the defendant-grantees, this Court wrote:

When, due to the mutual mistake of the parties, or perhaps a mistake by their draftsman, the agreement expressed in a written instrument differs from the agreement actually made by the parties, the equitable remedy of reformation is available. . . .
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It is immaterial whether the mistake arose out of the attorney’s ignorance. This is not a case where reformation is sought of a bare mistake of law. A bare mistake of law generally affords no grounds for reformation. Trust Company v. Braznell, 227 N.C. 211, 41 S.E. 2d 744 (1947). There is evidence that the parties agreed and intended to reserve a life estate. The instrument purporting to reserve the life estate, executed along with the deed, was ineffectual, which may be a mistake of law as to the legal efficacy of the transaction. However, the failure to accomplish the intention of the parties, to reserve a life estate, was a mistake of fact which will afford reformation. See, Trust Company v. Braznell, supra.
Evidence which tends to show the draftsman’s error also tends to show that the parties were mistaken in their beliefs. The evidence would support a finding of mutual mistake by the parties.

Id. at 59-60, 231 S.E. 2d at 166-67. Accord, Phillips v. Woxman, 43 N.C. App. 739, 260 S.E. 2d 97 (1979), cert. denied, 299 N.C. 545, 265 S.E. 2d 404 (1980).

More recently, this Court decided Cunningham v. Brown, 51 N.C. App. 264, 276 S.E. 2d 718 (1981). In Cunningham plaintiff-husband was operating a motorcycle on which plaintiff-wife was a passenger. The motorcycle collided with a vehicle driven by the defendant, and plaintiffs sued. The defendant moved for summary judgment as to plaintiff-wife’s claim in reliance upon a release executed by her. This instrument provided that plaintiff-wife released her husband and “any other person, firm or corporation charged or chargeable with responsibility or liability” in connec[518]*518tion with the accident.

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Bluebook (online)
279 S.E.2d 117, 52 N.C. App. 513, 1981 N.C. App. LEXIS 2450, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mcbride-v-johnson-oil-tractor-co-ncctapp-1981.