A. Krolik & Co. v. Ossowski

180 N.W. 499, 213 Mich. 1, 1920 Mich. LEXIS 459
CourtMichigan Supreme Court
DecidedDecember 21, 1920
DocketDocket No. 20
StatusPublished
Cited by16 cases

This text of 180 N.W. 499 (A. Krolik & Co. v. Ossowski) is published on Counsel Stack Legal Research, covering Michigan Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
A. Krolik & Co. v. Ossowski, 180 N.W. 499, 213 Mich. 1, 1920 Mich. LEXIS 459 (Mich. 1920).

Opinion

Clark, J.

In December, 1918, the defendant, then a retail merchant in Detroit, being indebted to plaintiffs, partners, wholesale dealers in dry goods, also of Detroit, in the sum of $2,981.63, on running or open account, was induced by plaintiffs, through Mr. Fixel, their credit man, in an effort to secure and collect their account, to execute and deliver to Mr. Fixel, as trustee for plaintiffs and other creditors, a chattel mortgage, in form somewhat of a bill of sale, covering defendant’s stock of merchandise, store fixtures and book accounts. The consideration named in the writing was $6,400.05, which included the amount due plaintiffs. Included in plaintiffs’ account were bills not due. These were made due by the writing, which also gave the trustee the right of immediate possession and the “right to foreclose without further notice.” The trustee took immediate possession and sold the stock. In [3]*3this he had the approval of defendant and of the creditors. The proceeds in two installments were distributed by plaintiffs, it seems, their checks being used in the payment of the first installment at least. Plaintiffs credited to the account of defendant the amounts of these installments retained by them, as of February 18th and April 27, 1914, respectively. The debit balance remaining was transferred to a loss and gain ledger and the account closed as of December 31,1914.

By a computation it will appear that after crediting the avails of the sale under the mortgage there was a deficiency due plaintiffs from defendant of $967.54. On March 14, 1914, defendant signed, at Mr. Pixel's request, a ratification of the foreclosure sale and the distribution, which writing said in part:

“I have gone over the list of creditors as compiled by the said Adolph Fixel; that I find the same correct” ; and there was attached to the writing a list of the creditors, showing the .amounts of the accounts and of the installments paid, the part relating to plaintiffs being:
30% 37.55%
“A. Krolik & Co., Detroit, 2,981.63 894.49 1,119.60”

On February 8, 1919, plaintiffs commenced against the defendant in justice’s court in Wayne county two suits. In each they declared in assumpsit in the amount of $500. In one case the bill of particulars was an itemized statement of a part of defendant’s account :

"An itemized statement showing purchases from June 2d, 1913, to November 5th, 1913 (165 separate items) ............................$2,609.01
Credits
Itemized statement showing 16 small credits ........................... $112.43
[4]*41914
Feb. 18. Cash $894.49
Apr. 27 Cash 1,119.60 $2,126.52
Balance due $472.49”
(482.49)

Defendant pleaded “the general issue with notice of compromise and settlement” and, it is inferred, sought to show an agreement that by the mortgage the account was to be fully satisfied. The plaintiffs had judgment for $500 and costs, which the defendant paid June 5, 1919, and the amount was entered in plaintiffs’ loss and gain ledger.

In the other case in justice’s court plaintiffs filed a bill of particulars of a later part of defendant’s account as follows:

“An itemized statement showing purchases from November 5, 1913, to December 27, 1913 (60 separate items) ............................ $630.82
An itemized statement of credits from November 10, 1913, to November 30, 1913 (16 separate items) ................................ 158.08
Balance due ............................... $472.74”

Defendant pleaded the general issue with notice of “res adjudicata and compromise and settlement.” Plaintiffs had judgment. Defendant appealed. Upon trial in the circuit court defendant contended in part and in substance that the claim of plaintiffs was an entire demand, that plaintiffs could not split their demand into two separate causes of action, and that the judgment in the first case in justice’s court was a bar to recovery in the case in circuit court. When plaintiffs rested counsel for defendant made a motion that a verdict be directed in favor of defendant, urging in his argument in support of the motion the reasons aforesaid. The motion was denied. On motion of counsel for plaintiffs a verdict was directed for plain[5]*5tiffs in the sum of $498.25, without costs, and judgment entered, which defendant reviews here on writ-of error. Counsel for plaintiffs raise two preliminary questions which we consider first:

“(1) Appellant waived any possible claim of account stated, if there ever was an account stated, through failure to plead account stated in plaintiffs’ previous suit on part of the same accounts.
“(2) The question of account stated cannot be raised for the first time in the Supreme Court, without intimation thereof in the lower court.”

As to waiver, counsel cite 1 C. J. p. 709, § 334, and cases collected in the foot-notes: Harrison v. Henderson, 67 Kan. 202 (72 Pac. 878); McCormick Harvesting-Machine Co. v. Wilson, 39 Minn. 467 (40 N. W. 571); Northern Line Packet Co. v. Platt, 22 Minn. 413; Rowell v. Marcy, 47 Vt. 627.

By none of these is plaintiffs’ contention sustained. They do hold that the advantage which a creditor is considered to have in having his account stated — the amount fixed or determined by agreement, expressed or implied — over having an open account where the items composing it must be proved, is waived by the creditor where his action is brought and defended upon his account as an open account. The plaintiffs in the first suit in justice’s court declared upon a part of the claim. The defense was, as we have said and inferred, that the defendant did not owe the plaintiffs because of settlement and compromise of the claim. This was not defending upon an open account as such and the record does not show that such defense was made. The defense sought to be made was equally applicable to a claim upon an open account and to a claim upon an account stated or entire demand, or to a claim for deficiency arising from the foreclosure of the mortgage. And defendant was not there called upon to plead that plaintiffs were not suing for the [6]*6whole claim. They might remit if they chose. The defense made in the second suit, the case at bar, was not waived in the other suit in justice’s court.

As to raising the defense of account stated, there is no merit in this contention. The plea in the case at bar, made orally, it seems, in justice’s court, as above stated, was sufficient to permit the defense that plaintiffs’ claim was on one account or demand and that an adjudication upon a part of it was necessarily an adjudication upon the whole. Defendant’s right so to defend was not questioned upon the trial. The files in the former case in justice’s court were received in evidence without objection. All other evidence of importance was brought in by plaintiffs. Defendant’s counsel may argue the legal effect of. such evidence.

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Cite This Page — Counsel Stack

Bluebook (online)
180 N.W. 499, 213 Mich. 1, 1920 Mich. LEXIS 459, Counsel Stack Legal Research, https://law.counselstack.com/opinion/a-krolik-co-v-ossowski-mich-1920.