Troubled Asset Solutions v. Wilcher

“The rights of the parties are measured by the instrument as originally intended, and the effect of the reformation, as a whole, is to give all the parties all the rights to which they are equitably entitled under the instrument that they intended to execute.” Reformation of Instruments, 66 Am Jur 2d § 9 (2011).

The Supreme Court reversed the original decision of the court of appeals in Troubled Asset Solutions v. Wilcher, 291 Or App 522, 422 P3d 314 (2018), rev’d in part on other grounds, 365 Or 397, 445 P3d 881 (2019). In the original opinion of the court of appeals, the court reversed both the trial court’s reformation of the parties’ deed of trust and rejected Wilcher’s quiet title claim. Because the Supreme Court reinstated the trial court’s reformation, only the quiet title claim was at issue in this case. “The rights of the parties are measured by the instrument as originally intended, and the effect of the reformation, as a whole, is to give all the parties all the rights to which they are equitably entitled under the instrument that they intended to execute.” Reformation of Instruments, 66 Am Jur 2d § 9 (2011). The Court held that because reformation was correct, Wilcher’s interest in quiet title was foreclosed because reformation “relates back” to when the instrument was first executed. General judgment affirmed; supplemental judgment remanded for correction of cost award; otherwise affirmed.