Continental Casualty Co. v. Didier

David Newbern, Justice.

This appeal questions whether there was a sufficient factual basis to support the chancellor’s decision to reform an instrument evidencing an insurance contract. Also at issue is the insurer’s claim for a declaratory judgment to the effect that the policy, due to an exclusionary clause, did not cover liability which might arise because of the unlawful sale of alcoholic beverages. The chancellor granted reformation on the ground of unilateral mistake of the insured coupled with inequitable conduct on the part of the insurer. The effect of the reformation was to remove…