La-Z-Boy Chair Co. v. Hinds

364 F. Supp. 33, 1973 U.S. Dist. LEXIS 11592
CourtDistrict Court, D. South Carolina
DecidedOctober 8, 1973
DocketCiv. A. No. 73-572
StatusPublished
Cited by1 cases

This text of 364 F. Supp. 33 (La-Z-Boy Chair Co. v. Hinds) is published on Counsel Stack Legal Research, covering District Court, D. South Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
La-Z-Boy Chair Co. v. Hinds, 364 F. Supp. 33, 1973 U.S. Dist. LEXIS 11592 (D.S.C. 1973).

Opinion

ORDER

HEMPHILL, District Judge.

Plaintiff moves for summary judgment pursuant to Rule 56 of the Federal Rules of Civil Procedure, insisting that no genuine issue of fact exists as a matter of law. The original complaint alleges the sale of merchandise to defendant in the amount of Fifty Thousand Seventy-Eight and 39/100 ($50,078.39) Dollars; attached to the complaint is a statement of account. The answer of the defendant alleges that he returned ninety (90) chairs and the acceptance by the plaintiff of these ninety (90) chairs, previously shipped to the defendant by the plaintiff, was in accord and satisfaction of the debt. Defendant’s answer further alleges valuable consideration by virtue of the depletion of defendant’s stock in trade below operational levels, as a result of the return of the chairs, and that defendant’s business was closed.1

In response to discovery defendant admitted that prior to the commencement of the delivery of the ninety (90) chairs [34]*34to the plaintiff, which took place on or about February 9, 1973, defendant was indebted to the plaintiff in the amount of Sixty Thousand and 00/100 ($60,000.-00) Dollars. After a hearing before this court on October 4, 1973, on the motion, defendant’s counsel conceded that there was no dispute as to the indebtedness of defendant to plaintiff prior to the return of the chairs in question. Discovery further produced an admission by the defendant that the chairs were worth about Ten Thousand ($10,000.00) Dollars.2 Further, in the testimony from the deposition referred to in footnote 2, we find the following.3

The following testimony from the deposition of Mr. Hinds is that upon which defendant’s counsel apparently basis his defense of accord and satisfaction:

(Testimony of Mr. Hinds referring to Mr. Ralph Droege, a salesman for the plaintiff at page 10, line 22, of the deposition.)
(Mr. Hinds): And then he [Mr. Droege] suggested the possibility of picking up the chairs and returning these to the factory and wiping out the debt completely; in other words, if I would release the chairs back to La-Z-Boy that I had, that he would talk to them at the plant and see that this debt was wiped out completely.
Q. Can you recall his exact words concerning the debt ?
A. No, sir, I don’t recall his exact words. I told him also, when he suggested that, I said, “Well, I hate to see La-Z-Boy or anybody lose that kind of money” and I said “It’s never been my intention to beat anybody out of anything and I have always tried to handle accounts the way that I said that I would”. In fact, your firm has collected for three accounts prior to this account in which I paid to you all everything that I said that I would do.
Q. Well, what did you understand him to mean when he said he would talk to them at the plant?
A. Well, he told me that he would see to it that the debt was wiped out.
Q. Well, how was he going about that Mr. Hinds?
A. I don’t know that.
Q. He was the sales representative, which you understood, was he not?
A. Yes, sir.
Q. But he was not the credit manager nor an officer of La-Z-Boy Chair Company ?
A. To my knowledge, he wasn’t.

Assuming the testimony of Mr. Hinds to be true and viewing it most favorably to him, this activity, and such wording, followed by the return of the chairs, does not effect an accord and satisfaction under the laws of the State of South Carolina. The general and better rule seems to have been stated in 1 Corpus Juris Secundum, Accord and Satisfaction, Section 2 (page 467), as:

Indeed, it is now sometimes laid down as a general rule that it is essential to the making of a valid accord and satisfaction that there be a bona fide dispute or controversy between the parties, an actual and substantial difference of opinion, as to either the validity of the demand, the liability of the debtor, or the amount due from him, or at least that the claim or demand be unliquidated. Clearly this is true where the accord and satisfaction consists in the giving and acceptance of a less sum of money than claimed, nothing more, for in such case, as elsewhere appears in § 4 infra, the only consideration is the mutual concession of the parties.

[35]*35Initially, this court finds there was no dispute as to the validity of any of the claims of the original demand, the liability of the debtor or the amount due. Defendant admitted that he originally owed a debt of approximately Sixty Thousand ($60,000.00) Dollars, for which he was given the credit of Ten Thousand ($10,000.00) Dollars upon return of the chairs. There was no difference of opinion as to the debt, either as to the validity of the debt, the liability of the debtor, or the original amount due from defendant to plaintiff, and the claim was for a liquidated amount because it was for goods sold and delivered, and there was no dispute about that. It is true that the South Carolina courts have not, by definition, directed as strongly or as broadly as the definition recited from Corpus Juris Secundum, but the inference from the decisions is that that is what is meant by the wording of such decisions. In Mixson v. Rossiter (1953), 223 S.C. 47, 74 S.E.2d 46, 48, where a manager-employee of a farm was given a payment check marked “full payment” which he endorsed, when in fact his contract had some months to go and more monies due, the court ruled that this was not an accord and satisfaction and stated:

This assignment of error is disposed of by the fact that the testimony discloses no dispute between the parties concerning the amount due, so as to furnish a basis for the application of the doctrine of accord and satisfaction.
The amount of the salary and other compensation which the respondent was to receive prior to his discharge is not a matter of dispute and was not involved in any of the discussions between the parties.
The application of the doctrine of accord and satisfaction requires the presence of two elements, to wit: the accord, consisting of the agreement between the parties to settle a dispute; and the satisfaction which consists of the payment of the consideration expressed in the accord. Redmond v. Strange, 203 S.C. 35, 26 S.E.2d 16; Reliance Varnish Co. v. Mullins Lumber Co., 213 S.C. 84, 48 S.E.2d 653; 1 C.J.S.. Accord and Satisfaction, § 1, pp. 462, 464. [Emphasis' added]

South Carolina further ruled on the question in Dunaway v. United Insurance Company of America (1962), 239 S.C. 407, 123 S.E.2d 353, stating:

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Bluebook (online)
364 F. Supp. 33, 1973 U.S. Dist. LEXIS 11592, Counsel Stack Legal Research, https://law.counselstack.com/opinion/la-z-boy-chair-co-v-hinds-scd-1973.