Neal v. Green

426 P.2d 485, 71 Wash. 2d 40, 1967 Wash. LEXIS 900
CourtWashington Supreme Court
DecidedApril 6, 1967
Docket38782
StatusPublished
Cited by11 cases

This text of 426 P.2d 485 (Neal v. Green) is published on Counsel Stack Legal Research, covering Washington Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Neal v. Green, 426 P.2d 485, 71 Wash. 2d 40, 1967 Wash. LEXIS 900 (Wash. 1967).

Opinion

Langenbach, J.

The following facts were found by the trial court. Respondents, Mr. and Mrs. Neal, owned two parcels of land in Yakima County. One parcel, referred to as the motel property, was composed of two contiguous tracts. The other parcel, referred to as the Danker property, was situated a few miles away. In September, 1957, respondents and the appellants Lind signed a real estate contract whereby respondents were to sell the motel prop *41 erty to appellants. Through a mistake, there was included in the real estate contract a description of the Danker property, which property was not intended to be sold by respondents. Appellants took possession of the motel property but did not take possession of the Danker property. Respondents, through Dankers, remained in possession of the Danker property, paying taxes on it, until May, 1958, when they contracted to sell it to Mr. and Mrs. Danker. The Dankers have ever since been in possession of it. They declared a homestead in 1960.

In 1962, acting under the same mistake as that under which the real estate contract of September, 1957, had been made, and using a copy of the same mistaken description, respondents signed and acknowledged a fulfillment deed. They did not deliver it.

A portion of the motel property had been condemned for highway purposes after appellants had entered possession. A controversy arose between appellants and respondents over the disposition of the price paid by the state for the condemned part of the motel property. The Superior Court for Yakima County ordered that respondents be paid a portion of that price equal to the unpaid balance of the purchase price under the real estate contract of September, 1957, with interest, in exchange for a fulfillment deed containing a description which was identical to that stated in the real estate contract. No issue was raised, litigated or decided between the parties to that proceeding as to whether there had been a mistake in the description contained in the real estate contract. At that time, the mistake had not been discovered. Neither was it discovered when the fulfillment deed was accordingly delivered to appellants.

In October, 1963, appellants purportedly made a gift of the Danker property to a daughter and son-in-law by quitclaim deed for which no consideration was paid. These grantees, the Greens, were upon notice of the rights of the respondents and of the Dankers who had given notice by *42 recording the declaration of homestead. In November, 1963, the Greens demanded possession of the Danker property.

Respondents sued in Yakima County for reformation of the real estate contract and fulfillment deed by deleting therefrom references to the Danker property. Venue was changed to King County for convenience of the witnesses. Having made its findings of fact, the trial court granted reformation and quieted title to the Danker property in respondents, subject to the rights of the Dankers. Appellants’ counterclaims were dismissed with prejudice.

Appellants challenge the trial court’s findings of fact which established that the Danker property was included in the real estate contract and fulfillment deed by mutual mistake. In Slater v. Murphy, 55 Wn.2d 892, 896, 898, 339 P.2d 457 (1959), we said:

The evidence to justify the reformation of a deed on the ground of mutual mistake must be clear, cogent, and convincing. [Citing cases.]
“. . . Courts of equity do not grant the high remedy of reformation upon a probability, nor even upon a mere preponderance of evidence, but only upon a certainty of the error. . . . ”

The question is whether the mistake upon which the reformation of the contract and deed was based is “established by such clear, cogent, and convincing evidence that we can say that the trial judge or any reasonable man should have been convinced thereby.” Slater v. Murphy, supra, at 898.

There was conflict in the testimony. But this does not mean that the court must deny reformation. “ ‘Certainty of the error’ is not the equivalent of ‘uncontradicted testimony of error.’ ” Jones v. National Bank of Commerce, 66 Wn.2d 341, 345, 402 P.2d 673 (1965). Mr. Lind, his son and daughter testified that to induce appellants to purchase the motel property, respondents, during negotiations, agreed to throw in the Danker property. (The trial court stated at the hearing on motion for judgment notwithstanding court’s decision that on the crucial issue it did not believe *43 the testimony of Mr. Lind.) Neals testified that they did not intend to include a description of the Danker property and that such description was included by mistake. Mr. Neal explained that the descriptions in the real estate contract had been based on tax statements which he had handed to an employee of the title company. He had meant to turn over only the statements regarding the motel property but had inadvertently given a statement regarding the Danker property as well. When he later saw the real estate contract, he thought the separation of the description into tracts A and B reflected the fact that the motel property was composed of two contiguous tracts. In fact, however, one of those described tracts was the Danker property.

Faced with a conflict of testimony and having in mind the standard of proof applicable here (a standard mentioned by the court four times in its five page oral opinion), the trial court examined the conduct of the parties. It pointed out that the earnest money agreement did not refer to the Danker property and that there was no evidence that such property was ever referred to in discussions with the title company employee who prepared the agreement. It pointed out that the title company wrote to another title company concerning this transaction and made no reference to the Danker property. It also noted that the Linds never took possession of the Danker property whereas the Neals were paying taxes and receiving rents on the property up to 1958 when they sold it to the Dankers who were thereafter in possession of and paying taxes on it. The court concluded that:

It is the opinion of the court that the conduct of the parties subsequent to the morning of September 3, 1957 is consistent with the testimony of the Neals and inconsistent with the testimony of the Linds to such an extent that the court is of the opinion that the evidence is clear, cogent and convincing that the mistake was made when Mr. Neal gave to Mr. Johnson in the office of the Everett Abstract and Title Company on September 3, 1957, the tax receipt describing the Danker property. This was a mistake, unconsciously done, and in the opinion of the court was probably not discovered by anyone *44 until after the Linds sold the balance of the motel property.

The trial judge had before him the conflicting testimony of the witnesses, the demeanor of the witnesses, corroboration (or lack of it) from contemporary records and evidence of the parties’ subsequent conduct.

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Cite This Page — Counsel Stack

Bluebook (online)
426 P.2d 485, 71 Wash. 2d 40, 1967 Wash. LEXIS 900, Counsel Stack Legal Research, https://law.counselstack.com/opinion/neal-v-green-wash-1967.