Opinion ID: 6200
Heading Depth: 2
Heading Rank: 3

Heading: Conversion Policy

Text: 45 We also follow Judge Barbour's ruling on the conversion coverage. The conversion policy was written to cover Ramsey from the time his wife's group policy at Colonial Life terminated. Because we agree that the original coverage continues to provide protection, there was no reason for Ramsey to have purchased a conversion policy and the district court properly entered judgment in favor of plaintiff in the amount Ramsey paid for that policy. 46 Where both parties to a contract are mistaken as to a material aspect of the contract, a court can reform or void the parties' obligations under that document. See Audio Fidelity Corp. v. Pension Ben. Guaranty Corporation, 624 F.2d 513, 518 (4th Cir.1980) (in interpreting an ERISA-governed pension, a court of equity can reform a contract to correct a mistake.... But the mistake must be mutual.); cf. Meza v. General Battery Corp., 908 F.2d 1262 (5th Cir.1990) (mutual mistake allows reformation of collective bargaining agreement). Because both parties would not have agreed to the contract had they known the proper construction of the group policy, a mutual mistake about the scope of coverage, the disadvantaged party is entitled to avoid the contract. Audio Fidelity, 624 F.2d at 518. We conclude that the district court properly ordered Colonial Life to refund all payments made by Ramsey in support of the conversion policy.