Aerosonic Instrument Corp. v. NuTone, Inc.

152 N.E.2d 739, 80 Ohio Law. Abs. 289, 1958 Ohio Misc. LEXIS 317
CourtCourt of Common Pleas of Ohio, Hamilton County
DecidedSeptember 8, 1958
DocketNos. A-151745, A-151746, A-151806, A-152117
StatusPublished
Cited by3 cases

This text of 152 N.E.2d 739 (Aerosonic Instrument Corp. v. NuTone, Inc.) is published on Counsel Stack Legal Research, covering Court of Common Pleas of Ohio, Hamilton County primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Aerosonic Instrument Corp. v. NuTone, Inc., 152 N.E.2d 739, 80 Ohio Law. Abs. 289, 1958 Ohio Misc. LEXIS 317 (Ohio Super. Ct. 1958).

Opinion

OPINION

By LEIS, J.:

These matters are presently before the Court for determination by agreement of the parties.

Four actions have been instituted by the plaintiff corporation. It is sufficient background to state that NuTone, Inc. had a contract with the federal government to supply altimeters and, in an effort to fulfil the requirements of the contract, entered into a contract with plaintiff corporation to furnish employees, services and parts to it. Disagreements as to contract amounts and materials furnished form the bases for the four suits. Defendant corporation contends that a con[290]*290tract of settlement was reached by the parties which bars further proceedings in the actions.

The issue for determination by this Court is succinctly set down in the Stipulation of the Parties and Order Pursuant Thereto, a document endorsed by counsel for both parties and made an order of this Court on December 27, 1957. The issue is thus stated:

“* * * The Court herein without the intervention of a jury will first hear and determine whether the parties hereto entered into a contract settling all of their said differences." (Emphasis added.)

Before proceeding to the factual question of the existence or nonexistence of an accord, it is best to define the terms to be employed. It must be borne in mind that “accord” and “satisfaction” are two distinct but related concepts.

“* * * an accord is an agreement for giving and taking a thing in satisfaction of an existing claim or debts; the satisfaction is the actual giving and taking of such thing.” 1 O. Jur. 2d 144. .

The accord, therefore, is the agreement; the satisfaction is the execution of the agreement. An accord and satisfaction is the compromise of an unliquidated claim, one disputed in good faith. If there is to be an accord and satisfaction, therefor, certain elements are essential. O. Jur. 2d lists four essential elements:

1. A proper subject matter;

2.. Competent parties;

3. An assent or meeting of the minds of the parties;

4. A consideration.

At this instant we are not concerned with a complete accord and satisfaction, but are interested in the existence or non-existence of an accord or agreement only.

Was there an accord? To support its contention that there was, NuTone, Inc. presented to the Court four witnesses and fourteen exhibits. In determining whether or not an accord was entered we must first examine the claims of plaintiff corporation ánd the transactions which took place in regard to these claims. Basically, four claims are involved to which the Court will refer by the following numbers:

Claim No. 1. $11,370.27 for labor furnished by Aerosonic to NuTone and for consultation services, forming the basis for case A-151806.

Claim No. 2. $2263.04 for pinion gears furnished by Aerosonic to NuTone, forming the basis for case 151746.

Claim No. 3. $1596.25 for processing pinions and sectors, forming the basis for case 151745.

Claim No. 4. $10,210.34 for wages of employees furnished by Aerosonic to NuTone forming the basis for case 152117.

There is sharp disagreement between counsel whether or not all four claims were included even in settlement negotiations. As to claims 2 and 3, there can be no doubt that they were the subject of settlement discussions. To deny this would be to contradict the entire record.

Now, as to the inclusion of claim 1 in these negotiations between Attorney Gold for the plaintiff and Attorney Marks for the defendant. The difficulty insofar as it pertains to claim No. 1 is whether this claim [291]*291was merely not discussed or was it abandoned. On this point the Court has studied most carefully the testimony of the witnesses and finds from the evidence presented that claim No. 1 was completely abandoned, the effect being that any settlement negotiations would include the ex-tinguishment of claim No. 1. The Court bases its conclusion as to claim No. 1 on the entire evidence from which the Court interprets that defendant corporation in its own mind felt that claim No. 1 was completely without merit and groundless, and that the discussions between the negotiators proceeded on the theory that claim No. 1 was of no real substance and was therefore abandoned and not merely shelved for future discussion. See Record page 40 (Attorney Gold, as on cross-examination)

“Q. Do I understand, Mr. Gold, that Mr. Marks said that he would negotiate with reference to a total of $3,859.29 if ,you would just abandon and forget about any other claims of Aerosonic against NuTone?
“A. Yes.
“Q. Just so the record is clear, sir, Mr. Marks said to you that he would not negotiate any further with reference to these two claims unless you forget about all other claims of Aerosonic against NuTone, is that right?
“A. That is right.”

Record page 87: (Attorney Marks, direct examination)

“A. First the claim of $11,370.27. I told him that both the company and I felt very strongly about that because that matter had been settled a great many months before, oh, roughly, January of that year, and I had been present when Mr. Frank had agreed to the settlement and it was made, settlement was made I think in January of 1954 and from that time until the date of Mr. Frank’s letter no invoice had been rendered for that amount. NuTone had considered it wiped out, and inasmuch as under the contract and under the practice any amounts which Mr. Frank asserted a claim were invoiced practically instantly. It was certainly of most compelling significance that no invoice had been received for some ten months on it. I told him it was júst a phony claim to bolster the other and we would have no part of it.” (Emphasis added.)

Record page 93: (Attorney Marks, direct examination)

“A. I said to him that we felt so strongly about this eleven thousand dollar claim which had been settled that we just were not going to discuss seriously a settlement until that claim was abandoned. I said ‘All you are doing in this matter is tacking that eleven thousand dollars on thinking we will be more generous on the others because that eleven thousand dollars is hanging over.’ I said ‘My client knows this is a false claim and I know it. I was there when the claim was settled and Mr. Frank knows it.’ And I said ‘You tell your client he has got to drop that claim because he knows it is completely false and then we will discuss seriously a settlement of the other items.’ ” (Emphasis added.)

Record page 110: (Attorney Marks, cross-examination)

“A. I didn’t say anything about Mr. -Gold not discussing it with me. I said the thing has to be dropped. It wasn’t a matter of discussion, it was a matter of dropping it, I said it was a fraudulent claim, NuTone [292]*292knows it is fraudulent and we are not going to have discussions with that in the background.” (Emphasis added.)

Record page 117: (Attorney Marks, cross-examination)

“A. That isn’t true. I said unless it was dropped, not that we didn’t discuss it. I didn’t mind discussing it.

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Bluebook (online)
152 N.E.2d 739, 80 Ohio Law. Abs. 289, 1958 Ohio Misc. LEXIS 317, Counsel Stack Legal Research, https://law.counselstack.com/opinion/aerosonic-instrument-corp-v-nutone-inc-ohctcomplhamilt-1958.