Perkins v. Highland Enterprises, Inc.

817 P.2d 177, 120 Idaho 511, 1991 Ida. LEXIS 135
CourtIdaho Supreme Court
DecidedAugust 22, 1991
Docket18955
StatusPublished
Cited by16 cases

This text of 817 P.2d 177 (Perkins v. Highland Enterprises, Inc.) is published on Counsel Stack Legal Research, covering Idaho Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Perkins v. Highland Enterprises, Inc., 817 P.2d 177, 120 Idaho 511, 1991 Ida. LEXIS 135 (Idaho 1991).

Opinions

McDEVITT, Justice.

Respondent, Jeff Perkins (“Perkins”), owns a construction business. He contracted to haul crushed rock for the appellant, Highland Enterprises, Inc. (“Highland”), in a remote area of Idaho County. The rock was to be crushed by a third-party, Cameo, Incorporated. Perkins contracted to haul the crushed rock from the site of the rock crusher and then dump it on a road being constructed by Highland. Perkins and Highland entered into a verbal agreement that Perkins would haul rock for $38.30 per hour for his end-dump trucks and $48.30 per hour for his belly-dump trucks. The parties agreed that Perkins would haul 4,000 tons of crushed rock for Highland.

Neither Highland nor Perkins anticipated that Cameo’s rock crusher would break down as often as it did. Many times, the trucks would haul for a very short time and then would have to wait in line while it took hours to fix the rock crusher.

During the course of the work, Highland informed Perkins that it would not pay the full hourly rate when the trucks were waiting for the crusher to be repaired. Perkins remained silent and did not comment on this remark, but kept his trucks on the job.

After the hauling was completed, Perkins billed Highland $9,098.95, which represented all the hours that his trucks were either hauling rock or waiting for the rock crusher to be repaired. Highland disputed paying the full hourly rate while the trucks were waiting while the rock crusher was inoperable. Highland asked Perkins to break down the hours between the hours the trucks were actually hauling rock (for clarification purposes, hereinafter called “production hours”) and the hours the trucks were waiting at the crusher for it to be repaired (“non-production hours”). Perkins was unable to produce such a breakdown. Perkins offered to deduct $1,000 from the total bill to compensate for the time spent waiting for the crusher to be repaired, but this offer was refused by Highland.

Highland then made its own computations and attempted to produce a breakdown between production hours and non-production hours. Highland then paid a discounted hourly rate for its determination of the non-production hours. After making this computation, Highland presented Perkins with a check for $5,535.02 with a notation: “Paid in full. All hauling thru Sept. 15, 1986.” Perkins protested, but accepted the check and cashed it, endorsing it: “Endorsed under protest.” Perkins then instituted the present action to recover the $3,563.93 he felt was still owed under the oral contract.

Highland filed a motion for summary judgment. The magistrate denied the motion finding that a genuine issue of material fact existed as to the hourly rate of pay. The jury awarded Perkins $3,563.93 in damages. The magistrate judge then awarded Perkins $2,580.76 in attorney fees. Highland appealed to the district court. The district court affirmed the magistrate court and awarded $1,560.00 in costs and attorney fees on appeal. Highland appealed [514]*514from the district court decision and the matter was assigned to the Court of Appeals. The Court of Appeals vacated the verdict and remanded the case for retrial. This Court granted review and affirms the judgment of the magistrate court.

Highland argues on appeal that: (1) the trial court improperly instructed the jury as to accord and satisfaction; (2) that Perkins should be estopped from demanding full payment after Highland informed Perkins that it could not pay the full rate; and (3) that the court improperly refused to allow evidence as to trade usage. Perkins argues on appeal that I.C. § 28-1-207 gave him the right to endorse the check under protest and pursue full payment later.

ACCORD AND SATISFACTION

Highland argues that the parties reached an accord and satisfaction, because it tendered a check with the notation: “Paid in Full. All hauling thru Sept. 15, 1986.” Highland argues that the fact that Perkins accepted and cashed the check demonstrates that the parties reached an accord and satisfaction. Perkins argues that he only accepted the check after he protested and informed Highland that he would not take the check in full satisfaction of the debt. Perkins asserts that he only accepted the check in order to pay the truck drivers and other bills.

Highland also alleges error in the court’s instruction to the jury concerning accord and satisfaction. The court instructed the jury as follows:

INSTRUCTION NO. 8
With respect to Plaintiff’s claim that he is entitled to damages from the Defendant, the Defendant has presented evidence on the defense of accord and satisfaction.
“Accord and satisfaction” is basically the substitution of one contract for another.
An “accord” is an agreement between the parties to give and to accept something in settlement of a debt. “Satisfaction” is the performance of that agreement. An underlying duty or debt is not discharged until the accord is satisfied.
An accord and satisfaction can never be implied from language of doubtful meaning. Also an accord and satisfaction can not arise by reason of the payment of less than is due, unless it clearly appears not only that this was the intention of Highland Enterprises, but also that Mr. Perkins expressly agreed to it, understood, or should have understood, as reasonable person, that, by accepting the lesser payment he was giving up his rights under the original contract.
With respect to the defense of accord and satisfaction Highland Enterprises must prove the following by a preponderance of the evidence:
1. That there was a dispute as to the amount owed by Highland Enterprises to Mr. Perkins; and,
2. That Highland Enterprises tendered an amount of money (check) to Mr. Perkins with the intent that such payment would be the total amount of money to be paid to Mr. Perkins; and,
3. That Mr. Perkins expressly agreed to accept the payment in full satisfaction of all debts owed to him by Highland Enterprises, or Mr. Perkins understood when he accepted the check or should have understood when he accepted the check that the check was in full payment for all debts owing to Mr. Perkins by Highland Enterprises.
If you find that Highland Enterprises has failed to prove any one of the listed elements of an accord and satisfaction set out above, then you should enter your verdict for the Plaintiff, Mr. Perkins. However, if you find that Highland Enterprises has proven all of the elements of the defense of accord and satisfaction as set out above by a preponderance of the evidence, then you should enter your verdict for the Defendant, Highland Enterprises.

Highland urges that this instruction errs when it states that an accord and satisfaction could arise only if Perkins “understood when he accepted the check, or should have [515]*515understood when he accepted the check, that the check was in full payment of debts owing to Mr. Perkins by Highland Enterprises.” Highland argues that it was only necessary to show that Highland intended the check to be in full payment for all debts owing. Highland’s argument is without merit. The intentions of both the debtor and the creditor are crucial in determining whether an accord and satisfaction has occurred.

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Perkins v. Highland Enterprises, Inc.
817 P.2d 177 (Idaho Supreme Court, 1991)

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Bluebook (online)
817 P.2d 177, 120 Idaho 511, 1991 Ida. LEXIS 135, Counsel Stack Legal Research, https://law.counselstack.com/opinion/perkins-v-highland-enterprises-inc-idaho-1991.