Olson v. Wilson & Co.

58 N.W.2d 381, 244 Iowa 895, 1953 Iowa Sup. LEXIS 351
CourtSupreme Court of Iowa
DecidedMay 5, 1953
Docket48270
StatusPublished
Cited by11 cases

This text of 58 N.W.2d 381 (Olson v. Wilson & Co.) 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
Olson v. Wilson & Co., 58 N.W.2d 381, 244 Iowa 895, 1953 Iowa Sup. LEXIS 351 (iowa 1953).

Opinion

Larson, J.

On or about August 1, 1951, tbe plaintiff sold thirty bead of cattle by oral contract to tbe defendant, through defendant’s agent, a Mr. Johnson. Plaintiff claimed be was to receive thirty-five cents a pound for tbe cattle, plus the excess if they were dressed out at a better grade. Defendant admits buying tbe cattle but denies plaintiff’s claim as to tbe price agreed upon and contends that tbe cattle were purchased from plaintiff on a grade and yield basis in compliance with OPS regulations. Under plaintiff’s claim they amounted to $10,725.75. Under defendant’s claim tbe amount due was $9372.80.

After delivery of tbe cattle to defendant on August 6, plaintiff received a draft in tbe net sum of $9372.80, which was marked “in full payment of tbe above items.” The items were listed as “cattle, 30 head, weight 30645, price $30.59, amount *898 $9374.30, average test.” On August 16, through his attornéy, plaintiff by letter acknowledged receipt of the draft and advised defendant of his demand for $1351.45 in addition to the amount received. This letter stated: “Mr. Olson has not cashed this check and will not cash the check until he has been paid the additional sum of $1351.45 which is the amount owing him for thirty head of cattle at 35c per pound.” Plaintiff also threatened the commencement of suit if the balance claimed was not received by August 30, 1951. Defendant replied by letter of August 23 stating that they were making a “detailed investigation” of the matter in dispute and would advise plaintiff when it was completed.

On September 14, 1951, plaintiff, through his attorney, again wrote the defendant-company asking that defendant grant permission to plaintiff to cash the original draft without prejudice to plaintiff’s claim for the balance, suggesting these words: “That Myrl Olson may endorse and cash Wilson & Co.’s Draft No. 9634, dated August 6, 1951, in the sum of $9372.80 without prejudice to any claim or rights he may have against your company, and that your company will not construe said endorsement and presentation for payment to be an admission by Mr. Olson that he has been paid in full for said 30 head of cattle weighing 30645 pounds.”

On September 17, 1951, the defendant-company wrote plaintiff’s attorney advising him it had completed an investigation and was satisfied that there was no guaranteed price of thirty-five cents per pound, and that the draft represented a remittance on the basis of grade and yield of the cattle slaughtered, and that the plaintiff had received payment for their full value. This letter also stated: “Your communication of September 14th concerning the cashing of the check is, of course, a matter for the decision of Mr. Olson, since he was paid the full value of his cattle and this value was contained in our original remittance.”

On October 1, 1951, the plaintiff through counsel again wrote defendant as follows: “This letter is to advise you that today Myrl Olson presented for payment your draft No. 9634 in the sum of $9372.80. However, it is Mr. Olson’s intention to consider this draft as only a partial payment on the 30 head *899 of cattle sold to your company. It is not Mr. Olson’s intention to accept this draft in full satisfaction of bis claim against your company nor is tbe acceptance of this draft to be considered as an accord and satisfaction. * * * Mr. Olson does not intend to waive any rights or claims he may have for the balance in the sum of $1351.45 * *

This letter was delivered to defendant two days later in Albert Lea, Minnesota. The draft was payable at First National Bank in Chicago, Illinois. Copies of the letters were filed as exhibits and were not denied. The present suit was commenced October 3, 1951, with plaintiff asking judgment against defendant for the sum of $1351.45.

Based upon the correspondence between the parties, the defendant, in addition to denying plaintiff’s version of the contract, pleaded accord and satisfaction and asked dismissal of plaintiff’s action. Defendant also made application to the court to adjudicate separately in advance of trial, in accordance with rule 105, Rules of Civil Procedure, the law issue of accord and satisfaction. The matter was submitted on the uncontroverted allegations of the pleadings on April 25, 1952, and the learned trial court in finding for the defendant held as a matter of law that there was an accord and satisfaction. We agree.

The only question before us is whether under the reeord there was an accord and satisfaction established as a matter of law.

The law looks with favor on the adjustment and settlement of controversies without resorting to court action. Shahan v. Bayer Vehicle Co., 179 Iowa 923, 162 N.W. 221. Settlement by accord and satisfaction involves essentially a new contract or agreement, and the elements of a new contract must be found in the settlement to make it valid. Kellogg v. Iowa State Traveling Men’s Assn., 239 Iowa 196, 29 N.W.2d 559. Obviously each case must be determined upon its own facts and circumstances. However, there are certain rules and decisions which-guide and control transactions of this kind, such as those affecting liquidated and unliquidated claims, and the acts of the parties relating to intention, consideration, necessary implications, and bona fide disputes. We shall discuss them as they relate to this case, which *900 is not complicated. It involves only a simple dispute between two parties over the terms of an oral ag'reement by which plaintiff sold and delivered cattle to the defendant.

I. There are many definitions of accord and satisfaction. “Accord and satisfaction is a method of discharging a contract or cause of action, whereby the parties agree to give and accept something in settlement of the claim or demand of the one against the other, and perform such agreement, the ‘accord’ being the agreement, and the ‘satisfaction’ its execution or performance.” 1 C. J. S., Accord and Satisfaction, section 1, page 462.

In an early Iowa case, Perin v. Cathcart, 115 Iowa 553, 557, 89 N.W. 12, 13, Judge Deemer said: “But as an accord and satisfaction is an executed agreement whereby one of the parties undertakes to give, and the other to accept, in satisfaction of a claim arising either from contract or tort, something other or different from what he is or considers himself entitled to, no invariable rule can be laid down, with any degree of certainty, as to what constitutes such an'agreement. Each case must be determined largely on its peculiar facts. To constitute a valid accord and satisfaction, not only must it be shown that the debtor gave the amount in satisfaction, but that it was accepted by the creditor as such. Jones v. Fennimore, 1 G. Greene 134; Weddigen v. Fabric Co., 100 Mass. 422. The agreement need not be express, but may be implied from circumstances, as shown in the cases just cited. Where an offer of accord is made on condition that it is to be taken, in full of demands, the creditor, doubtless, has no álternative but to refuse it or accept it upon such conditions. Keck v. Insurance Company, 89 Iowa 200.”

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Bluebook (online)
58 N.W.2d 381, 244 Iowa 895, 1953 Iowa Sup. LEXIS 351, Counsel Stack Legal Research, https://law.counselstack.com/opinion/olson-v-wilson-co-iowa-1953.