Opinion ID: 625528
Heading Depth: 4
Heading Rank: 1

Heading: Mistake theory

Text: In the law of trust, a court may reform a trust instrument to accord with the settlor's intent if there is evidence that a mistake of fact or law affected the terms of the instrument and if there is evidence of the settlor's true intent. RESTATEMENT (THIRD) OF TRUSTS §§ 12, 62 (2003); RESTATEMENT (THIRD) OF PROP. (WILLS & OTHER DONATIVE TRANSFERS) § 12.1 (2003); see also RESTATEMENT (SECOND) OF AGENCY § 8D & cmt. a (1958). In the law of contract, a court may reform a contract to reflect the true intent of the parties if both parties were mistaken about the content or effect of the contract. RESTATEMENT (SECOND) OF CONTRACTS § 155 (1981). The court may reform the contract to capture the terms upon which the parties had a meeting of the minds. See Am. President Lines, Ltd. v. United States, 821 F.2d 1571, 1582 (Fed.Cir.1987); Schongalla v. Hickey, 149 F.2d 687, 690 (2d Cir.1945). Whether we view the drafter of Northrop Plan B as a settlor or as a party to a contract, Appellants have presented no evidence that Northrop Plan B contains terms that fail to reflect that drafter's true intent. Appellants argue that the 2003 SPD is evidence of the drafter's true intent and that the master document contains a mistake. That argument fails. Appellants have provided no evidence of authorship of the 2003 SPD or of the 2003 SPD's capturing any intent at all, other than the intent to create an accurate and comprehensive summary of Northrop Plan B. It would be unreasonable for us to infer otherwise.