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Keywords

contractdefendantattorneyappealhearingrescission
contractplaintiffdefendantattorneyappealrescission

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Covich v. Chambers, 8 Mass.App.Ct. 740, 397 N.E.2d 1115

Facts

In June 1973, Sidney Covich purchased land from Anthony G. Chambers and his mother for a housing development. Covich's complaint claimed cancellation of the note and mortgage due to mutual mistake or fraud, and he sought rescission of the purchase agreement and reimbursement for overpayments due to an error in the land area conveyed. The defendants admitted an error in the land description and counterclaimed for the amount due on the note. A master concluded that the sale was not vitiated by mutual mistake or fraud, and the judge adopted this report after an evidentiary hearing.

In June, 1973, the plaintiff Sidney Covich purchased land owned by the defendants in Mansfield, intending to construct a housing development. His complaint sought cancellation of a note and mortgage given in connection with the financing of the sale on the grounds of mutual mistake or fraud. He also sought rescission of the purchase and reimbursement for overpayments made on the note because of an error in calculating the land area conveyed by the deed.

Issue

Did the court err in concluding that there was no mutual mistake or fraud in the sale of the land, and was the award of attorney's fees to the vendors justified?

Did the court err in concluding that there was no mutual mistake or fraud in the sale of the land, and was the award of attorney's fees to the vendors justified?

Rule

To establish mutual mistake, the party seeking rescission must prove the mistake by clear and convincing evidence, and both parties must share the erroneous belief regarding a basic assumption of the contract.

To establish mutual mistake, the party seeking rescission must prove the mistake by clear and convincing evidence, and both parties must share the erroneous belief regarding a basic assumption of the contract.

Analysis

The court found that Covich, as an experienced developer, had voluntarily assumed the risk regarding the land's drainage issues and that any mistake was unilateral. The evidence indicated that Covich had the opportunity to investigate the property further but chose not to conduct necessary tests. The master's findings supported the conclusion that there was no mutual mistake, as Covich did not rely on any misrepresentation by the vendors.

The court found that Covich, as an experienced developer, had voluntarily assumed the risk regarding the land's drainage issues and that any mistake was unilateral. The evidence indicated that Covich had the opportunity to investigate the property further but chose not to conduct necessary tests. The master's findings supported the conclusion that there was no mutual mistake, as Covich did not rely on any misrepresentation by the vendors.

Conclusion

The Appeals Court affirmed the judgment of the lower court, concluding that Covich had not established mutual mistake or fraud and that the vendors were entitled to attorney's fees as per the terms of the note.

The Appeals Court affirmed the judgment of the lower court, concluding that Covich had not established mutual mistake or fraud and that the vendors were entitled to attorney's fees as per the terms of the note.

Who won?

Vendors (Chambers) prevailed because the court found that Covich failed to prove mutual mistake or fraud and that the vendors were entitled to the amounts due on the note.

Vendors (Chambers) prevailed because the court found that Covich failed to prove mutual mistake or fraud and that the vendors were entitled to the amounts due on the note.

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