Bryan Keefe Co., a Corp. v. Howell

109 So. 593, 92 Fla. 295, 1926 Fla. LEXIS 607
CourtSupreme Court of Florida
DecidedJuly 20, 1926
StatusPublished
Cited by9 cases

This text of 109 So. 593 (Bryan Keefe Co., a Corp. v. Howell) is published on Counsel Stack Legal Research, covering Supreme Court of Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bryan Keefe Co., a Corp. v. Howell, 109 So. 593, 92 Fla. 295, 1926 Fla. LEXIS 607 (Fla. 1926).

Opinion

*302 Brown, C. J.

(after stating the ease). — In their briefs, counsel for defendants in error criticized the declaration Cor pleading evidentiary facts instead of ultimate facts, and for attempting to set out the cause of action at length instead of merely using the usual statutory form of common count for money had and received. These objections to the form of the declaration, even if they could have been successfully made by motion for compulsory amendment under the statute (which it is not necesary for us to decide), are not raised by the demurrer going to the substance of the declaration. This is substantially conceded by counsel for both sides, who, in their briefs, concur in the statement that this case presents the single question as to whether or not the declaration states a cause of action.

If the claim of ITowell & Co. against plaintiff in error had been undisputed, they could have cashed the check, applying the proceeds as far as they went in reduction of the amount due, and still retained the legal right to recover the balance, if any, of the debt. And this effect would have followed even though the check had been enclosed in *303 a letter stating that it was tendered in full satisfaction of the debt, else to be returned, or if words of similar import had been written on the check. Payment of part of an undisputed debt does not discharge the whole in the absence of an agreement by both parties to that effect, and such agreement will not be implied. Jordy v. Maxwell, 62 Fla. 236, 56 So. 946; L. R. A. 1917 A, 719; 3 Williston on Contracts, sections 1852-55. But such is not the case as to unliquidated and disputed claims, as is well shown by section 1854 of 3rd Williston, which reads as follows; “It seems obvious that nothing can operate as a satisfaction, without the mutual assent of debtor and creditor; but here as always in the formation of contracts this does not necessarily involve mental assent, as is shown by one commonly recurring state of facts. The case is this: A debtor sends to a creditor whose claim is unliquidated or in good faith disputed a check with a letter stating that the check is sent in full satisfaction, and that the creditor if unwilling to accept it as such must return it; or it is stated on the check, itself that it is full satisfaction. The creditor takes the check, but immediately writes a letter stating that he refuses to accept the check as full satisfaction, but will apply it in reduction of the indebtedness. Upon these facts the English Court of Appeal first held that there was no satisfaction of the cause of action, but later practically overruled the decision. A few jurisdictions in the United States have sustained -the creditor’s contention that the question of his assent to the debtor ’s proposition is to be dealt with as one of fact. But the great weight of authority in the United States is to the contrary. It is said that the aceepance of the cheek necessarly involves an acceptance of the condition upon which it was tendered. A retention of a check, even for an unreasonable length of time has not always been given this effect, but as the credi *304 tor has no more right to retain the cheek an unreasonable time than he has to cash it, unless he accepts it as full’ satisfaction, there seems no propriety in distinguishing the two situations.”

The declaration plainly alleges that the claim on which the check was sent was a disputed one, and hence it follows that the acceptance of any intelligible conditions upon which it was tendered — at least in so far as such conditions operated to satisfy the original claim. But in order for the declaration here to be held to state a good cause of action to recover back a part of such original claim, it must go further and show that the acceptaneé and cashing of the check by Iiowell Company furnishes the consideration for and operated to form a new contract between the parties, by which the Howell Company agreed, not only to the discharge of the old claim, but also to abide by the conditions and terms upon which the check was tendered; in other words, plaintiff must have made it appear by its declaration that such acceptance of the check, in view of the conditions upon which it was tendered, effected a novation, by which a new or substituted contract was made, by which Howell thereby became bound to perform such terms or ■conditions; and that Howell had breached the new contract sued on,

Could the mere acceptance and cashing of the check by Howell, with knowledge of the conditions on which it was tendered, as shown by the letter accompanying it, have had this effect? We think this is possible, if the conditions were clearly expressed. It is undoubtedly true that to constitute a novation, the assent of all parties is necessary (3 Williston, section 1870), but such assent may be established by circumstances showing it as well as by expressed words. Id., section 1875; Malsby v. Gamble, 61 Fla. 310, 54 So. 766; Robinson v. Hyer, 35 Fla. 573-4, 17 So. 745. One who *305 is offered goods at more than their market value cannot take them and say, “I will take them and convert them, but not buy them,” and thereby render himself liable for only their market value. And where money or a check, or otljer property, is offered in settlement of a disputed claim, the receiver has but two alternatives, either to reject, or accept in accordance with the condition. But the debtor must make it clear that the check which he sends is offered only on the conditions named. (3 Williston Contr., see. 1856.) Of course, the payment, or the promise to pay, an undisputed debt previously existing — an offer to do no more than one is already legally bound to do — does not constitute a valid consideration, and hence no new contract could be founded upon it. 1 Williston Contr., sec. 130, 132. But not so as to an unliquidated or disputed claim. The settlement of a disputed claim may constitute a valid consideration for an accord and satisfaction, a compromise agreement or a new contract. I Williston, secs. 128, 134 Id. Vol. 3, Sec. 1873, and cases cited; McLane v. Piaggio, 24 Fla. 70, 3 So. 823; Sanford v. Abrams, 24 Fla. 181, 2 So. 373; 12 C. J. 324 and cases cited.

As intimated above, in order for assent to a new contract to be implied from the mere acceptance and cashing of the check' the letters or other documents accompanying same should make it plain that such retention and use of the check could only rightfully be exercised upon acceptance of the conditions upon which it is tendered, otherwise the check to be returned to the sender, and the terms and conditions should also be expressed with.reasonable certainty and clearness. It should also appear from the declaration that the plaintiff has performed all things required of him, if any, by the new contract, which would entitle him to demand performance on the part of the defendant.

The declaration does not make it very clearly to appear *306 that by plaintiff’s proposal, defendants were to return the check if they did not assent to the terms.

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

Related

Berman v. U.S. Financial Acceptance Corp.
669 So. 2d 1116 (District Court of Appeal of Florida, 1996)
Love v. Zurich American Insurance Group
46 Fla. Supp. 2d 39 (Florida Circuit Courts, 1991)
Yelen v. Cindy's Inc.
386 So. 2d 1234 (District Court of Appeal of Florida, 1980)
Hannah v. James A. Ryder Corp.
380 So. 2d 507 (District Court of Appeal of Florida, 1980)
John H. Easley v. W. C. Allen
367 F.2d 361 (Fifth Circuit, 1966)
Yafanaro v. Ninos
123 So. 2d 286 (District Court of Appeal of Florida, 1960)
United States Rubber Products, Inc. v. Clark
200 So. 385 (Supreme Court of Florida, 1941)
Orlando Orange Groves Co. v. Hale
161 So. 284 (Supreme Court of Florida, 1935)
Florida Power & Light Co. v. Employers' Liability Assurance Corp.
146 So. 850 (Supreme Court of Florida, 1933)

Cite This Page — Counsel Stack

Bluebook (online)
109 So. 593, 92 Fla. 295, 1926 Fla. LEXIS 607, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bryan-keefe-co-a-corp-v-howell-fla-1926.