Ring v. Ashworth

3 Iowa 452
Supreme Court of Iowa·Decided December 15, 1856·Published·Cited by 11 cases

Opinion

Weight, C. J.

Two questions are presented in this case. Complainant alleges in his bill, that one parcel of the land sold him by respondents, was by mistake misdescribed in the written contract. He therefore prays, that this mistake [457] may be corrected, and tbat respondents may be decreed to convey tbe parcel intended and designed to be sold, wbicb is specifically set ont. . In tbe argujnent, the parties bave treated this averment as denied by tbe answer, and tbe question made is, tbat a court of equity has no jurisdiction to correct a mistake in a contract, and then decree its specific performance as corrected.

On this question, tbe authorities are not uniform, but we think tbe better reasoning is in favor of tbe prayer of this bill, and against tbe position assumed by respondents.' Tbe general rule, tbat excludes parol evidence to vary or control written contracts, is well understood. Where, however, tbe terms or stipulations of a contract have been procured, suppressed, or omitted, by fraud, or imposition, courts of equity bave not hesitated to grant relief, notwithstanding tbat to admit parol proof of such suppression or omission, may be said to violate tbe general rule upon wbicb parol evidence is excluded.

To allow tbe fraud and imposition to be thus proved, however, is regarded as a proper exception to tbe general rule; for tbe rule and exception are alike found’ed upon tbat principle, wbicb would “ suppress frauds and promote general good faith and confidence, in tbe formation of all contracts.” To reject such evidence entirely, would be to allow tbe general rule, wbicb was designed to suppress fraud, “ to be tbe most effectual promotive and encouragement of it.” And upon the same ground it is, tbat equity interferes in cases of mistake.

“Acourt of equity would be of little.value, if it could suppress only positive frauds, and leave mutual mistakes, innocently made, to work intolerable mischief, contrary to tbe intention of tbe parties. It would be to allow an act, originating in innocence, to operate ultimately as a fraud, by enabling tbe party who receives tbe benefit of tbe mistake, to resist tbe claims of justice, under tbe shelter of a rule formed to promote it. In a practical view, there would be as much mischief done by refusing relief in such eases, as there would be introduced by allowing parol evidence in all [458] cases, to vary written contracts.” Cases of fraud and mistake, then, properly form exceptions to the general rule, which excludes parol evidence to control or vary the written contract; and though exceptions, they, stand upon the same policy as the rule itself. But while such proof is admissible, it is equally true, that the mistake must be made entirely clear, and established by the most satisfactory proof. In the Marquis of Townsend v. Stangroom, 6 Vesey, 328, Lord Eldon said, that he owned that those who undertook to rectify an agreement, by showing a mistake, undertook a task of great difficulty, but he could not say that such evidence was incompetent. And in Gillespie v. Moore, 2 Johns. Ch. 596, the chancellor-says, that “ the cases concur in the strictness and difficulty of the proof, but still they admit it to be competent; and the only question is, does it satisfy the mind of the court?” And to the same effect, are the authorities generally. Story’s Eq. Jur. §§ 152, 162 and note 1, to § 161; Keiselbrack v. Livingston, 4 Johns. Ch. 144; Bradford v. Union Bank, 13 How. 57.

Assuming then, that parol proof is admissible to show the mistake, is it competeüt for complainant to ask for such correction, and a specific performance of the contract ? It is said in the argument, that the rule is different where a party is seeking, from what it is when he is resisting, a specific performance, and this distinction appears to be recognized by the English authorities. And it is therefore claimed, that while the respondent may be allowed to show in defence that there was a mistake in thé written agreement, and thus resist the specific performance as prayed; and while equity might for him, reform and correct the contract, whether the alleged mistake was set up by answer or cross bill, yet the same relief will not be extended to the party who, as complainant, seeks similar relief. To our minds, there is no room for this distinction. So far as the introduction of proof to show mistake, may be said to violate the statute of frauds, it must be very evident that it can make no difference, whether it comes from the complainant or respondent. And the same is true, where the abjection is that it tends to contradict or vary the [459] written agreement. There is certainly as much good sense and justice in saying, that a complainant shall have the right to insist upon the specific performance of his bond as written, without change, by the introduction of parol proof, as there -is in giving to respondent such right, and denying it to complainant. And why, on the other hand, the complainant, if a'mistake has occurred to his prejudice, may not set it up, when seeking relief, in like manner as the respondent may when resisting the relief, we cannot conceive. As we view ■the mutual rights of the parties in a court of equity, and the jurisdiction and duty of the chancellor, the distinction is narrow, and unsupported by either reason or justice.

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Ring v. Ashworth, 3 Iowa 452 (iowa 1856).

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