Cooley v. Roman

578 P.2d 491, 34 Or. App. 301, 1978 Ore. App. LEXIS 2452
CourtCourt of Appeals of Oregon
DecidedMay 8, 1978
DocketNo. A75-455, CA 9455
StatusPublished
Cited by6 cases

This text of 578 P.2d 491 (Cooley v. Roman) is published on Counsel Stack Legal Research, covering Court of Appeals of Oregon primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cooley v. Roman, 578 P.2d 491, 34 Or. App. 301, 1978 Ore. App. LEXIS 2452 (Or. Ct. App. 1978).

Opinion

GILLETTE, J.

Plaintiff sued defendant for payment for certain legal services, alleging an "account stated.” Defendant filed a general denial. Both parties then filed motions for summary judgment supported by affidavits. The trial court denied summary judgment to plaintiff and granted summary judgment to defendant. Plaintiff’s motion to set aside the judgment was denied.

Plaintiff appeals, claiming (1) summary judgment should have been granted in his favor, (2) summary judgment should not have been granted to defendant, and (3) the trial court’s denial of his motion to set aside the judgment represented an abuse of discretion. Because we believe that the trial court erred in granting summary judgment to defendant, we reverse.

Plaintiff’s complaint was filed on June 1, 1977. It alleged that

"* * * on or about the 27th day of May, 1977, at Eugene, Oregon, an account was stated between the Plaintiff and the Defendant, and upon such statement of account, Defendant was indebted to the Plaintiff in the sum of $2,451.59.”

The complaint further alleged an agreement to pay, and failure to do so.

On June 16,1977, the attorney for defendant made the following request by letter of the attorney for plaintiff: "Would you please be so kind as to send me a verified written statement of the account that is the subject of that lawsuit.” Plaintiff responded by letter dated June 22, 1977, in which plaintiff discussed the background of the litigation, and closed by stating that he had enclosed "an itemization of charges and credits made to defendant’s account.”

Defendant then filed an answer in which he generally denied the allegations of plaintiff’s complaint.

Plaintiff then filed his motion for summary judgment on the ground that there existed no genuine [304]*304issue of liability. Plaintiffs motion was accompanied by the affidavit of Patricia K. Barnhart dated July 12, 1977, in which Barnhart, the secretary/bookkeeper for plaintiff, stated that she had regularly mailed defendant billing statements, that defendant had made periodic payments, and that defendant had at no time denied owing plaintiff the amounts claimed.

Defendant then filed his motion for summary judgment on the ground that there existed no genuine issue of liability. The motion was accompanied by defendant’s affidavit stating that the charges reflected in the summary of account attached to the Barnhart affidavit were primarily incurred for work done for a corporation, and that although some of the charges were for defendant personally, defendant could not identify from the summary of account which charges were which. Defendant further stated that he had at no time agreed to be liable personally for the work done in behalf of the corporation. No counter-affidavit filed on behalf of plaintiff alleged that the billings rendered to defendant and on which defendant made payment included charges for services to both the corporation and the defendant.

Also accompanying defendant’s motion for summary judgment was an affidavit of defendant’s attorney in which the attorney recited having sent the previously described letter to plaintiff’s attorney, and having received by mail the previously discussed response from plaintiff.

The trial court acting pursuant to ORS 18.105(3)1 [305]*305denied summary judgment to plaintiff but granted it to defendant.

1. Denial of Plaintiffs Motion for Summary Judgment.

Although described in his complaint as an action on an "account stated,” the affidavits reveal that plaintiff’s action was actually based on an "account.” This distinction has legal significance.

"An account stated is an agreement between persons who have had previous transactions of a monetary character fixing the amount due in respect to such transactions and promising payment.” Steinmetz v. Grennon, 106 Or 625, 634, 212 P 532 (1923).

By contrast, an "account” is merely a statement by one party to another of the first party’s view of the state of financial obligations between them. The second party has not necessarily agreed on the amount or, indeed, that he is obligated at all. See Sunshine Dairy v. Jolly Joan, 234 Or 84, 380 P2d 637 (1963).

In this case, defendant’s affidavit claimed that he was not liable for some of the charges upon which plaintiff was suing. It follows that there was no "agreement * * * fixing the amount due,” and that there was therefore no account stated.

Plaintiff maintains, however, that defendant had acquiesced in the account by failing to object to it, thereby converting it into an "account stated.” It is true that an account stated may be created by the failure to object within a reasonable time to a repeated billing. Crim v. Thompson, 98 Or 599, 613, 193 P 448 (1920). However, there is nothing in the facts shown by the affidavits in this case to suggest that it was reasonable to expect defendant to have objected to the billings. If, for instance, defendant was an agent for the company which he claims is responsible for a portion of the account, there might have been no reason for him to object. His first reason to object did not arise until he learned that plaintiff felt he was personally liable for the entire amount.

[306]*306The plaintiffs claim was on an "account,” not an "account stated.” It follows that defendant was entitled to dispute the amount he owed on the account.

ORS 18.105(3) authorizes summary judgments where "there is no genuine issue as to any material fact and * * * the moving party is entitled to judgment as a matter of law.” The affidavits establish that there was a genuine issue of fact as to the amount defendant owed on this account. Plaintiffs motion for summary judgment was properly denied.

2. Granting of Defendant’s Motion for Summary Judgment.

The trial court granted defendant’s motion for summary judgment. Defendant had requested summary judgment because he claimed plaintiff had failed to comply with ORS 16.470 which provides:

"A party may set forth in a pleading the items of an account therein alleged, or file a copy thereof, with the pleading verified by himself, or his agent or attorney, if within the personal knowledge of such agent or attorney, to the effect that he believes it to be true. If he does neither, he shall deliver to the adverse party, within five days after a demand thereof in writing, a copy of the account, verified as in this section provided, or be precluded from giving evidence thereof. The court or judge thereof may order a further account when the one filed or delivered is defective.”

Defendant requested by letter that plaintiff provide him a "verified written statement of account.” His request did not specifically mention the statute. In response, plaintiff’s counsel provided an unverified summary of account more than five days after receiving the request.

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Cite This Page — Counsel Stack

Bluebook (online)
578 P.2d 491, 34 Or. App. 301, 1978 Ore. App. LEXIS 2452, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cooley-v-roman-orctapp-1978.