Morris Salomon, Respondent v. North British and Mercantile Insurance Company of New York, Appellant

Summary

The New York Court of Appeals reversed the Appellate Division's judgment and ordered a new trial, holding that there was no mutual mistake sufficient to justify reformation of the fire‑insurance policy. The majority required that both parties share the same mistake for equity to reform a contract, and found that the plaintiff and defendant each erred on different facts. A dissent argued that the parties did share a mutual mistake regarding the mortgagee interest and that reformation was warranted.