DIANE M. MILFORD AND GOVERNMENT EMPLOYEES INSURANCE COMPANY, APPELLANTS,
v.
METROPOLITAN DADE COUNTY, APPELLEE

Fla. 3d DCA | 1983-04-26
No. 82-2299
Before HENDRY, HUBBART and DANIEL S. PEARSON, JJ.
430 So. 2d 951 Florida District Court of Appeal, Third District (1983) Positive Treatment
Cited by 16 cases

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Holding

A party seeking reformation of a release due to mutual mistake is not required to bring an independent action, and a genuine issue of material fact regarding the release's intent precludes summary judgment.


Headnotes

[1] A release agreement may be reformed in equity where it does not accurately reflect the parties' intent due to mutual mistake.

[2] A tortfeasor's right to contribution from another tortfeasor is conditioned on extinguishing the other tortfeasor's liability in a settlement.

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Facts & Procedural History

Plaintiff sued defendant for damages from a collision. Defendant filed a third-party complaint against a County for contribution. Plaintiff and defend…

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Opinion of the Court
DANIEL S. PEARSON, Judge.

DANIEL S. PEARSON, Judge.

Christine Finlay sued Diane Milford1 for damages arising out of a collision between a motorcycle driven by Finlay and a car driven by Milford. Milford brought a third-party complaint against Metropolitan Dade County for contribution. Thereafter, Milford and Finlay settled and executed a release which omitted mention of the County.

The County moved for summary judgment on the ground that Milford’s action for contribution could not lie in the face of a release which did not extinguish the County’s liability to Finlay. The County’s motion for summary judgment was met by Milford’s motion to reform the release accompanied by affidavits of counsel for Milford and Finlay, which stated, in pertinent part, that the release did not accurately reflect the intention of their clients in that it failed to set forth that any and all other parties, including Dade County, were to be released from all liability to Finlay and was thus entered into as a result of a mutual mistake. The trial court entered summary judgment for the County. Milford appeals and we reverse.

Milford concedes that her right of contribution from the County derives solely from Section 768.31, Florida Statutes (1979), see South Carolina Insurance Company v. Ryder Truck Rental, Inc., 425 So. 2d 1199 (Fla. 2d DCA 1983), and is, therefore, conditioned on her (as the settling tortfeasor) having extinguished in the settlement the liability of the other tortfeasor, the County. § 768.-31(2)(d), Fla.Stat. (1979).2 Woods v. Withrow, 413 So. 2d 1179 (Fla.1982). She simply argues that it was the intention of the parties to the settlement to extinguish the County’s liability and that such intention should be put into effect by reforming the release, which, in turn, would activate Milford’s right to contribution.

The fact that the release as written unambiguously fails to extinguish the County’s liability is plainly not dispositive and, indeed, is irrelevant to Milford’s claim for reformation. Gonzalez v. Travelers Indemnity Company of Rhode Island, 408 So. 2d 741 (Fla. 3d DCA 1982). Where an agreement does not carry out the intent of the parties or violates such intent, equity will reform the agreement. Id. at 742. Of course, such relief is equally available to one seeking to reform a release because of mutual mistake, Gonzalez v. Travelers Indemnity Company of Rhode Island, 408 So. 2d 741; Ayr v. Chance, 372 So. 2d 1000 (Fla. 4th DCA 1979); Alexander v. Kirkham, 365 So. 2d 1038 (Fla. 3d DCA 1978). And, contrary to the County’s argument, Milford is not required to bring an independent action to obtain the relief of reformation.3 See Gonzalez v. Travelers Indemnity Company of Rhode Island, 408 So. 2d 741 (summary judgment for insurer based on release of uninsured motorist benefits reversed and case remanded for trial on in sureds claim that release did not express actual intent of the parties to preserve the right to such benefits and should be reformed); Ayr v. Chance, 372 So. 2d 1000 (summary judgment for defendants based on release discharging them from any and all claims reversed and case remanded for resolution of issue of fact as to whether release a product of mutual mistake).

The County’s argument that the release in question, since it so specifically and deliberately limited the parties, to be released, could not have been the product of mutual mistake, raises at best a question of fact to be resolved by the trial court at an evidentiary hearing to be held on the appellant’s motion to reform. All we decide is that there exists a genuine issue of material fact as to whether the release, upon which the summary judgment was founded, expressed the intent of the parties and that, therefore, summary judgment was precluded.

Reversed and remanded for further proceedings.

. All references to Milford are intended to include her insurer, G.E.I.C.O.

. The section provides:

“RIGHT TO CONTRIBUTION—

“(d) A tortfeasor who enters into a settlement with a claimant is not entitled to recover contribution from another tortfeasor whose liability for the injury or wrongful death is not extinguished by the settlement or in respect to any amount paid in a settlement which is in excess of what was reasonable.”

. Although Alexander v. Kirkham, 365 So. 2d 1038, involved an independent action, that, needless to say, is hardly a reason to claim, as the County does, that an independent action is the exclusive method for reforming a release. Moreover, the fact that Finlay is no longer a party to the present action, and reformation of the release to which Finlay was a signator cannot be accomplished without her, does not, ipso facto, compel an independent action. While Finlay’s rights in respect to the release cannot be adjudicated without her, jurisdiction over her can be reacquired either by consent or some appropriate procedural device.


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Citator

Cited By

  • Eligio Barrios & Goldstone Co., N.V. v. Duran, 496 So. 2d 239 (Fla. 3d DCA 1986)
    …he appel-lee. De Los Salmones v. Stolar, 357 So. 2d 261 (Fla. 3d DCA 1978). There is also an issue of fact as to the intention of the parties in the execution of an agreement to which the appellee is not a party. Milford v. Metropolitan Dade County, 430 So. 2d 951 (Fla.3d DCA 1983); Letiziano v. Lytal, 427 So. 2d 321, 324 (Fla. 4th DCA 1983); Consolo v. A.M.K. Corporation, 344 So. 2d 1285 (Fla. 3d DCA 1977). The issue of fraud generally should not be disposed of by summary judgment. Levey v. Getelman, 408 So.…
  • Real Est. World Fla. Commercial, Inc. v. Piemat, Inc., 920 So. 2d 704 (Fla. 4th DCA 2006)
    …Chance, 372 So. 2d 1000, 1002 (Fla. 4th DCA 1979) (reversing summary judgment where the plaintiffs “raised an issue of fact as to whether the language contained in the release was included therein by mutual mistake.”); Milford v. Metro. Dade County, 430 So. 2d 951, 953 (Fla. 3d DCA 1983) (reversing summary judgment where “[t]he County’s argument that the release in question, since it so specifically and deliberately limited the parties to be released, could not have been the product of mutual mistake, raises…
  • Soucy v. Casper, 658 So. 2d 1015 (Fla. 4th DCA 1995)
    …ease only appellant’s derivative claim. As in Ayr, we must reverse the order granting summary judgment. Appellee correctly points out that it is insufficient for appellant to allege and prove unilateral mistake. Milford v. Metropolitan Dade County, 430 So. 2d 951 (Fla. 3d DCA), rev. denied, 440 So. 2d 352 (Fla.1983). She must prove that both parties to the release were mistaken. Admittedly, in Milford, attorneys for both parties filed affidavits. However, by alleging in their affidavits that there was never…

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