Lanci v. Metropolitan Insurance Co.
Pennsylvania Superior Court
564 A.2d 972 (1989)
Relevant factsFree
Lanci (plaintiff) negotiated a car-accident settlement with his insurer, Metropolitan Insurance Co. (defendant), agreeing to accept $15,000 and signing a release; his attorney's confirmation letter described the $15,000 as the sum Metropolitan had represented to be the applicable policy limits, when the policy's actual limit was $250,000. When Metropolitan moved to enforce the settlement, the trial court denied the motion, characterizing the situation as a mutual mistake about the policy limits, and Metropolitan appealed.
IssueFree
Whether one party's unilateral mistake may be sufficient to void a contract when the other party knew or should have known of that mistake.