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This dispute over interpretation of
contractual language came before the court on cross
motions for summary judgment. The contract dealt with
workers’ compensation and general liability insurance,
and set forth a specific formula for calculating loss
reimbursement payments that defendant was obliged to
make to plaintiff. While purporting to use this formula,
an amendment to the contract nevertheless inaccurately
calculated defendant’s maximum reimbursement liability.
Defendant subsequently refused to make any payments in
excess of this calculated amount.
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Both parties agreed that the court could
and should base its decision solely upon a proper
interpretation of the contractual language at issue.
Acting on this suggestion, the court ruled that
defendant’s maximum liability as calculated in the
amendment “was a clear error in calculation or
typography, not a mutual mistake warranting rescission.”
Id. at *6. Defendant’s liability was therefore to
be determined according to a correct application of the
formula set forth in the agreement. The court left it to
the parties to calculate this revised amount, subject to
assessment by the court if agreement could not be
reached.
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