No that isn’t what judicial discretion is. In contract law judges are not permitted to unilaterally interject their understanding of a contracting party’s intent and revise the terms of a contract, try looking up the “4 corners of a contract”.

I’ll give a specific example of a buddy of mine who in 2008 (during housing bubble) used to buy foreclosed homes at auction. There was a $2-3M home foreclosed Miami Beach home on auction, he put in a bid for about $200k, then the clerk of court website crashed, he didn’t think much of it, come to find out it crashed for everyone locking in his bid, the bank moved to set aside the sale on the basis of uncontrollable 3rd party error, my friend showed up single handedly with a few cases printed up in support of his position and the court denied the banks motion and my friend received title to the house. If the bank had any remedy it was for damages against the courts system that caused the damage not against the contractual winner of the auction.