R & B Farms v. Cedar Valley Acres
Annotate this CaseThis case arose from a boundary dispute between R and B Farms and Cedar Valley Acres. The disputed property, a parcel of cropland located north of a fence, was encompassed by a legal description deeded to Cedar Valley under the agreement conveying the land. R and B, however, claimed that all parties to the contract decided the fence line would serve as the boundary for the property. R and B filed suit against Cedar Valley, alleging among other causes of action mutual recognition and acquiescence. In its complaint R and B did not explicitly plead mutual mistake as a theory of recovery. The district court ultimately found in favor of R and B on the theory of mutual mistake and reformed the contract on that basis. The Supreme Court reversed and remanded, holding that because the facts pleaded by R and B were sufficient to place the theory of mutual mistake at issue and because mutual mistake was tried by the implied consent of the parties, the claim of mutual mistake was properly before the district court. However, because the record did not support a finding of mutual mistake, the Court held the district court erred in reforming the contract.
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