Barth Produce Co. v. Kelly

235 N.W. 471, 211 Iowa 1154
CourtSupreme Court of Iowa
DecidedMarch 10, 1931
DocketNo. 40643.
StatusPublished

This text of 235 N.W. 471 (Barth Produce Co. v. Kelly) is published on Counsel Stack Legal Research, covering Supreme Court of Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Barth Produce Co. v. Kelly, 235 N.W. 471, 211 Iowa 1154 (iowa 1931).

Opinion

Kindig, J.

During the times material to this litigation, the plaintiffs-appellants were a copartnership doing business at Cedar *1155 Rapids, under the firm name of Barth Produce Company. The partners were A. J. Barth and Chester A. Barth. Throughout the same time, the defendants-appellees were-a copartnership doing business at Sigourney, under the name and style of Sig-ourney Produce Company. This copartnership was composed of Tom Kelly and B. O. 0 ’Rourke.

Two accounts are involved in the present suit. Of these, one is for goods, wares, and merchandise sold by the appellants to-the appellees; while the other grows out of a transaction wherein the appellants purchased eggs from appellees. A partial payment was made by each respective debtor to the respective creditor, but in each instance there was a balance due, unless an accord and satisfaction arose, under the facts hereinafter discussed. Said individual indebtednesses rose out of the following transactions: On April 4, 1928, the appellees shipped from- Sigourney to the appellants, at Cedar Rapids, a carload of eggs, containing ■ 250 cases, at the agreed price of $8.80 per case, f. o. b. Sigourney. Also on April 14, 1928, the appellees shipped from Sigourney to the appellants, at Cedar Rapids, a carload of eggs containing 284 cases, of which 224 cases were sold for $8.55 per case, and .the remaining 60 cases on the basis of $7.15 per case, f. o. b. Sig-ourney. According to the sale price thus contemplated, the aggregate amount due appellees from appellants for those eggs was $4,544.20. There was paid, however, by appellants to. appellees only the sum of $4,310.85, leaving a balance due, according to that computation, of $233.35. This is the amount claimed by ap-pellees to be due it from appellants, and constitutes one account in litigation.

The other account in dispute is due appellants from appel-lees. It arose through an order for merchandise placed with appellants by appellees. That merchandise consisted of “White Fillers,” “filler cases,” and “Holed Tite Flats.”. These are articles used for packing eggs. Upon receiving the order, appellants sent the merchandise to appellees. When the order was given, the parties fixed a definite purchase price. Calculated, according to that contract, the aggregate purchase price was $212.75. Appellees have paid the appellants upon that account $79.40, thus leaving a balance due of $133.35.

Such is the second account involved in the litigation. ■ Appellants brought their action in the district court to recover from *1156 the appellees said sum of $133.35. By way of answer to appel-. lants’ demand in that regard, the appellees claim: First, an accord and satisfaction, through a check known in the record as Exhibit 3, wherein the aforesaid $79.40 was sent appellants, together with a letter to the effect that such sum and an alleged $133.35 balance due on the egg shipments above named fully canceled and satisfied the $133.35 claim named in appellants’ petition (according to the record, appellees erred in appellants’ favor to the extent of $100, the amount actually due on the egg shipment being $233.35); and, second, a counterclaim for the unpaid balance on said egg shipments, amounting to $233.35. Said amount specified in the counterclaim, according to the sum named in the accord and satisfaction, erroneously would have been only $133.35, but the error was afterwards corrected by amendment, and shown to be $233.35. In their reply, appellants contend that appellees’ counterclaim was fully satisfied, through another accord and satisfaction arising in the following manner: When each carload of eggs arrived at Cedar Rapids, it was found that some of them were not up to standard, and therefore communication was had between appellants and appellees, whereby an adjustment was made upon the basis of a discount, to the extent of $233.35. Because this dispute over the quality of these eggs was settled in that manner and way, appellants contend that an accord and satisfaction arose. Each accord and satisfaction was denied by the respective parties: that is to say, appellants deny that appellees settled with them for the egg-crating merchandise on the basis of $79.40; and likewise, appellees aver that they did not receive the amounts paid by appellants for the eggs as an accord and satisfaction.

A dispute arises concerning the quality of eggs to be furnished by appellees to the appellants, in the first instance; and likewise, a controversy exists about what was said by the respective parties, from time to time, regarding the eggs. As before indicated, this case was tried to the district court, a jury being waived; and therefore, if there are substantial facts in the record sustaining the findings of that court, we are powerless to change the same on this appeal. After a hearing in the district court, that tribunal found for the appellees and against the appellants. Thereby the litigation resulted in the cancellation of *1157 appellants’ claim for $133.35 against tbe appellees, and in addition thereto, a judgment was rendered in appellees’ favor against the appellants for $100. Appellants ask a reversal óf that judgment, upon the following grounds:

I. It is said by appellants that the eggs they purchased from appellees were to be “storage packed extra firsts.” On the contrary, appellees assert that the eggs ordered by appellants were to be of the ordinary kind and quality. Evidence was introduced upon this disputed subject, and there was a sharp conflict therein. Thus arose a question for the court, which was passing upon the facts. That tribunal found that the preponderance of the evidence was in appellees’ favor. Therefore, under the circumstances, this court is bound thereby.

II. Furthermore, it is claimed by appellants that, regardless of the foregoing, a dispute arose over the quality of these eggs, and a compromise of the difficulty ensued. Following the aforesaid dispute, appellants say, they mailed to appellees, for each carload of eggs, a check for a reduced purchase price. These checks, appellants explain, were offered by them to, and received by, appellees as an accord and satisfaction. . Consequently, appellants conclude that there cannot be a recovery by appellees for the alleged balance of $233.35.

During our discussion in Wheeler v. Woods, 205 Iowa 1240, on pages 1245 and 1246, we declared:

i i« * # ^ ^ understanding of the parties creates an accord only, then there must be a'satisfaction thereof before complete relief from the previous obligation exists. Shields v. Holtorf, 199 Iowa 37. * * * Quite as emphatically, on the other hand, however, it is generally declared by the courts that, if the result of the transaction between the parties amounts to more than an .accord,—that is, to a novation or an independent contract of settlement,—the original claim, because thereof, is entirely extinguished ; for in such event the new promise itself is accepted as a satisfaction.”

Likewise, we said in Minnesota & O. P. Co. v. Register & Tribune Co., 205 Iowa 1228, on pages 1232 and 1233:

“Under the rule in this state, it is established that, where there is a bona-fide dispute between the parties regarding the *1158

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Wheeler v. Woods
219 N.W. 407 (Supreme Court of Iowa, 1928)
Zabawa v. Osman
210 N.W. 602 (Supreme Court of Iowa, 1926)
Minnesota & Ontario Paper Co. v. Register & Tribune Co.
219 N.W. 529 (Supreme Court of Iowa, 1928)
Shields v. Holtorf
201 N.W. 63 (Supreme Court of Iowa, 1924)
Perin v. Cathcart
89 N.W. 12 (Supreme Court of Iowa, 1902)
Shull v. McCrum
179 Iowa 1232 (Supreme Court of Iowa, 1917)
Farr v. Mackie Motors Co.
193 Iowa 954 (Supreme Court of Iowa, 1922)

Cite This Page — Counsel Stack

Bluebook (online)
235 N.W. 471, 211 Iowa 1154, Counsel Stack Legal Research, https://law.counselstack.com/opinion/barth-produce-co-v-kelly-iowa-1931.