Fox v. Washburn

Carley, Justice,

dissenting.

I fully agree with the majority that there is no rule whereby re*620formation of a written document, on the basis of mutual mistake, must be denied unless the mistake is admitted by both parties. There is, however, an established rule whereby reformation of a written document must be denied unless the mistake is shown to be mutual. OCGA §§ 23-2-30; 23-2-31. In my opinion, the evidence, when construed most favorably for appellant-defendants Mr. and Mrs. Fox, shows that no genuine issue of material fact remains as to the existence of a reformable mutual mistake. Accordingly, I must respectfully dissent to what I perceive to be the majority’s erroneous reversal of the trial court’s grant of summary judgment in favor of appelleeplaintiffs Mr. and Mrs. Washburn.

The majority focuses solely upon the fact that a genuine issue of material fact yet remains as to the existence of an original oral agreement between Washburn and Fox to reserve a life estate in Fox. However, the existence of that original oral agreement is ultimately immaterial, unless a genuine issue of material fact also remains as to whether, notwithstanding the statute of frauds and the parol evidence rule, the subsequent written deed given to Washburn should be reformed so as to add the reservation of a life estate in Fox. To abrogate the statute of frauds and the parol evidence rule

would destroy the very foundation of business intercourse, and would render written contracts solemnly executed vulnerable to attack by verbal testimony. The law regards the signature of a-party to a contract as evidence of his assent to the terms of that contract, and such evidence is not subject to change as conditions change or as parties might change their minds, and is of the highest quality.

McCullough v. Kirby, 204 Ga. 738, 744 (5) (51 SE2d 812) (1949). See also Prince v. Friedman, 202 Ga. 136, 138 (1) (42 SE2d 434) (1947).

It is settled law in this state that “ ‘a party to a contract who can read must read, or show a legal excuse for not doing so, and that fraud which will relieve a party who can read must be such as prevents him from reading.’ [Cit.]” McCullough v. Kirby, supra at 744 (5). Thus even assuming the existence of the purported oral agreement which Washburn denies and Fox asserts, Fox clearly cannot prevail under the theory that Washburn fraudulently omitted the reservation of a life estate from the terms of the deed. Fox’s own failure to read the deed precludes him from a recovery under that theory.

Fox seeks to avoid this result by asserting that the omission of the reservation of a life estate from the deed was the result of a mutual mistake.

A “mutual mistake” in an action for reformation means one *621in which both parties had agreed on the terms of the contract, but by mistake of the scrivener the true terms of the agreement were not set forth. [Cit.]

Cox v. Smith, 244 Ga. 280, 282-283 (1) (260 SE2d 310) (1979). The deed was drafted by an attorney. Accordingly, Fox could meet his burden of proof by showing that the attorney had been instructed to reserve a life estate in Fox, but that the attorney mistakenly omitted the reservation from the deed. However, Fox makes no claim that he himself instructed the attorney to reserve the life estate. Instead, Fox relied entirely upon Washburn to have the attorney draw the deed in accord with the purported oral agreement. Fox cannot show that Washburn ever instructed the attorney to reserve a life estate and that the attorney thereafter mistakenly omitted it from the deed. Washburn denies that reservation of a life estate was ever part of the agreement and the attorney himself does not recall being instructed by Washburn to reserve a life estate. Construing this evidence most favorably for Fox, any non-fraudulent omission of a life estate from the deed would be the sole result of Washburn’s unilateral mistake in failing to advise the attorney that a life estate was to be reserved. The non-fraudulent omission of a life estate would necessarily be the sole result of Washburn’s unilateral mistake in this regard, since Fox relied entirely upon Washburn to advise the attorney as to the terms of the deed and made no effort himself to advise the attorney to reserve a life estate.

Thus, the undisputed evidence shows that there was no reformable mutual mistake made in the actual preparation of the deed itself. See A. J. Concrete Pumping v. Richard O’Brien Equip. Sales, 256 Ga. 795, 796 (1) (353 SE2d 496) (1987); Layfield v. Sanford, 247 Ga. 92 (274 SE2d 450) (1981); Martin v. Heard, 239 Ga. 816, 817 (1) (238 SE2d 899) (1977); Gauker v. Eubanks, 230 Ga. 893, 896 (1) (199 SE2d 771) (1973). The evidence shows, at most, a unilateral mistake on the part of Washburn in the preparation of the deed. The holding of the majority will, in effect, nullify the statute of frauds and the parol evidence rule. Under the majority’s holding, any and all written instruments will now be subject to reformation so long as one party thereto asserts that, even though he elected not to read the instrument before signing it, the other party mistakenly caused terms to be omitted therefrom when it was prepared. To such a holding, I must respectfully dissent.

I am authorized to state that Presiding Justice Benham and Justice Fletcher join in this dissent. *622Decided November 14, 1994. Bowles & Bowles, Jesse G. Bowles, for appellants. Paula T. Hanington, for appellees.