Opinion ID: 853129
Heading Depth: 2
Heading Rank: 2

Heading: The Contract Between McCoy and the Jacks

Text: Because Johnson would not have received a credit had the agreement between the Jacks and McCoy not been a loan, the remaining issue is whether the agreement requires repayment by the Jacks of the $960,000 that exceeded the jury's determination of McCoy's liability. We conclude that it does not. McCoy contends that if credits did not survive the Comparative Fault Act, then the entire settlement agreement is meaningless because the repayment provision could never be triggered. It alludes to explanatory language in the contract to support its contention that the purpose of the contract was to eliminate any overpayment by McCoy. There may be circumstances when a plaintiff would enter into such an agreement even though it produces a heads we lose, tails we break even deal for them by capping the defendant's liability at the lesser of the jury award or the settlement amount. In any event, McCoy concedes that repayment, if it is to occur at all, depends wholly on the provisions of paragraph 7. The parties are bound to the terms of that paragraph, and this Court is not free to alter them to conform to McCoy's understanding of their legal effect. Estate of Spry v. Greg & Ken, Inc., 749 N.E.2d 1269, 1275-76 (Ind. Ct.App.2001) ([R]eformations for mistakes are only available if they are mistakes of fact, not if they are mistakes of law.... [The] mistake was regarding the effect of the release, not its terms. Consequently, we may not reform the release...) (citation omitted). By its terms, the contract contemplates repayment to McCoy only to the extent it comes out of Johnson's pocket, not the Jacks'. Therefore, the Jacks are not obligated to repay any amount to McCoy.