Beynon Building Corp. v. National Guardian Life Insurance Co

118 Ill. App.3d 754 (1983)

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Nature of the Case

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Facts

Benyon (P) executed a mortgage and note with Rockford for $85,000 in 180 equal monthly installments of $649.60. The underlying note and mortgage were assigned to National (D). P made 178 payments on the note and sent D payment in full, but D refused to accept the final check as it claimed that there had been a drafting error in the original promissory note and that the payments should have been $694.60 rather than $649.60 per month. P sued D for a release of the mortgage. D defended on grounds that the mistake had been discovered and that a letter was sent to P's former president in 1965 indicating that the loan would be paid off in 200 installments rather than 180. P's former president acknowledged the longer loan term in a letter written to D in 1973. The trial court denied P's claim for release and granted D's claim for reformation. (It is a fact that $85,000 at 5.5% interest amortized out to $694.60 per month). P appealed.