Opinion ID: 1689691
Heading Depth: 1
Heading Rank: 4

Heading: Did the Court commit reversible error in reforming the warranty deed based upon a finding of mistake on the part of the Plaintiff?

Text: ¶ 12. This Court has repeatedly stated that it will examine the record and accept the evidence reasonably tending to support the findings made below, along with all reasonable inferences which may be drawn therefrom which favor the trial court's finding of fact. In re Estate of Taylor, 609 So.2d 390, 393 (Miss.1992). The chancery court as trier of fact has the primary authority and responsibility to assess the credibility of witnesses. Bryan v. Holzer, 589 So.2d 648, 659 (Miss.1991). In Hill v. Southeastern Floor Covering Co., 596 So.2d 874, 877 (Miss.1992), this Court stated that the chancellor's findings will be upheld unless those findings are clearly erroneous or an erroneous legal standard was applied. ¶ 13. Todd claims that the trial court erred in finding that the warranty deed in question should be reformed based upon a mistake by Judy. We agree. ¶ 14. The standard of proof in reforming a deed is beyond a reasonable doubt. This Court has stated that [t]he law in Mississippi is clear that, to prove a mistake in a warranty deed, the party alleging the mistake, and seeking to reform the deed because of it, must prove the mistake beyond a reasonable doubt. McCoy v. McCoy, 611 So.2d 957, 961 (Miss. 1992) (citing Webb v. Brown, 404 So.2d 1029, 1032 (Miss.1981)) (emphasis added). The evidence presented to justify reformation of a deed must be sustained by proof beyond a reasonable doubt. Brown v. King, 214 Miss. 437, 439, 58 So.2d 922, 923 (1952). ¶ 15. Judy testified that in 1998 she had gotten behind on the payments on the house and the other 59.4 acres. The house on the 40 acres and the other 59.4 acres both had mortgages, but the mortgages were with different lenders. Judy testified that Deposit Guaranty National Bank held the trust deed on the 59.4 acres back 1998. She could not remember who held the trust deed on the house and 40 acres. The mortgage on the house and 40 acres was with First Nationwide Mortgage Company. Judy testified that she learned of the foreclosure notice running in the newspaper from her sister-in-law, Barbara Dunn Rogers, sister of Judy's deceased husband, Buddy Dunn. ¶ 16. She testified that she finally discussed her financial condition with her son, Todd, and they then came to an agreement on how to stop the foreclosure. Judy testified that she did not agree to deed Todd her house. She left everything up to Todd to arrange. Judy was asked on cross-examination whether she considered herself incompetent. She testified that she did not consider herself incompetent nor had she ever pled herself to be incompetent. ¶ 17. Judy claims that she never read the deed or the paperwork at the bank. The law in Mississippi is clear that a person cannot avoid a written contract which he entered into on the ground that he did not read it or have it read to him, and that he supposed the terms were different, unless he was induced not to read it or have it read by fraudulent representation made to him by the other party on which he was entitled to rely. McCubbins v. Morgan, 199 Miss. 153, 159, 23 So.2d 926, 927 (1945). A grantor cannot obtain relief against a conveyance made merely on the ground that the grantor did not read the deed nor have the contents of the deed explained to him. Id. Judy's testimony that she did not read the deed or understand the conveyance, was the only evidence presented by Judy which supported her allegations. The trial court received testimony from Jim Cook, senior lending officer at Merchants and Farmers, and Judy Black, secretary for attorney Russ Rogers, that contradicted Judy's position. In United States v. Williams, 441 F.2d 637, 645 (5th Cir.1971), the Fifth Circuit stated as follows: Equity will not reform a written contract because of mistake as to the contents of the writing on the part of the complaining party, who is able to read but negligently fails to do so, unless there is a mutual mistake of fact. In that case, Williams had received a sketch of the property that with very little effort would have allowed him to have discovered the true boundary of the property. Williams apparently did not review the sketch. Because of his own negligence, Williams signed the deed under a mistake of fact that he had regarding the property. Williams claimed that the engineers did not inform him of the boundary. The court held that there was no mutual mistake; and therefore, Williams was not entitled to reformation of the deed. ¶ 18. In the case sub judice, Russ Rogers, Todd's uncle and husband to Barbara Dunn Rogers, was the attorney who drew up the deed. Russ Rogers drafted a deed that conveyed all three tracts from Judy to Todd. Tract I was the 40 acres with the house, Tract II was the other 59.4 acres and Tract III was the easement. All three tracts were clearly listed in one warranty deed. The tract that involved the house and 40 acres was listed first on the deed. ¶ 19. Jim Cook, senior lending officer at Merchants and Farmers Bank, handled the financing. Merchants and Farmers made two separate loans with respect to the 40 acres and the 59.4 acres. The first loan was made in September 1998, to Judy Dunn for $24,576.87. According to Cook, the loan to Judy for $24,576.87 was paid out as follows: $1,753.46 to cover a small loan Judy already had with Merchants and Farmers, $16,000.00 to Deposit Guaranty to pay off the mortgage on the 59.4 acres, and $6,823.41 to Arnold Wise, the attorney for the mortgage company to stop the impending foreclosure on the house and 40 acres. The second loan made by Merchants and Farmers Bank was made to Todd Dunn for $65,130.00, $65,000.00 in principal and $130.00 in fees. Todd executed a deed of trust dated January 28, 1999, on the house and 40 acres and the 59.4 acres. Cook testified that the $65,000.00 was paid out as follows: $34,396.70 was paid to First Nationwide Mortgage Company to pay off the mortgage on the house and 40 acres, $24,820.79 was paid to Merchants and Farmers Bank to pay off the loan made by Judy in September 1998, and $5,782.51 was paid to Todd to use for repairs to the house. ¶ 20. Cook was questioned as to the basis of his decision to lend money to Judy and Todd. Cook testified that he had an understanding that Todd was going to refinance the loan made to Judy and that Todd would put up the 40 acres and the 59.4 acres as collateral to secure his note. Cook testified as follows: Q: Mr. Cook, would you have made the same loan that you made for Todd and for which Todd issued a deed of trust to your bank for Judy Dunn? A: Would I have made this September of 1998 loan, is that the question? Or the last loan I made to Todd for $65,000.00? Q: Either one. A: I would not have made the $65,000.00 and I would not have made the first one had I not had an understanding that it would be refinanced and paid off by Todd. Q: So basically Todd would have been the reason that the loan would have been made? A: From a credit stand point, yes. ¶ 21. Cook testified concerning Judy's demeanor that day at the bank and whether she seemed to understand the transaction. He testified that, in his opinion, Judy did understand the transaction. Cook testified that Judy just signed the note, a deed of trust and a few things and then just said thanks. According to Cook, Judy did not ask any questions. There was no proof that Judy had any reason not to read the paperwork at the bank or was prevented from reading the paperwork. ¶ 22. Judy Black, secretary for attorney Russ Rogers, prepared the deed for the conveyance between Judy and Todd in 1998. Black stated that Judy came into her office, and she gave Judy the deed. Black testified that Judy read the deed. She testified that Judy specifically asked her why the deed did not say anything about the house. Black explained to Judy that, by listing the 40 acres that the house sat on within the deed, the deed covered everything. After Judy read the deed, she signed the deed, and Black notarized her signature. ¶ 23. The testimony by Black and Cook both contradict Judy's position that she mistakenly deeded the house and 40 acres to Todd. In fact, Judy's own testimony was that she was not incompetent nor was she alleging that she was incompetent. No evidence was presented that Judy was in any way impaired or unable to read or understand what she read. Judy read the deed or at least had the opportunity to read the deed. The trial court erred in finding that the deed in question should be reformed based upon a mistake by Judy. Judy did not satisfy the standard of proof to reform a deed beyond a reasonable doubt. The evidence presented by Judy consisting of her testimony alone did not prove beyond a reasonable doubt that the deed should have been reformed. All other evidence pointed toward the contrary. The chancellor's decision was clearly erroneous and is reversed.