Puett v. Walker

50 N.W.2d 740, 332 Mich. 117, 1952 Mich. LEXIS 542
CourtMichigan Supreme Court
DecidedJanuary 7, 1952
DocketDocket 35, Calendar 45,156
StatusPublished
Cited by24 cases

This text of 50 N.W.2d 740 (Puett v. Walker) is published on Counsel Stack Legal Research, covering Michigan Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Puett v. Walker, 50 N.W.2d 740, 332 Mich. 117, 1952 Mich. LEXIS 542 (Mich. 1952).

Opinion

North, C. J.

In this suit in equity plaintiff sought a decree based on an accounting between him and ■defendant incident to a joint adventure in which the parties had been engaged, and in which they were to share net profits equally. The defense urged was that an alleged “final accounting” mailed by defendant to plaintiff, accompanied by defendant’s check for an amount shown due plaintiff by such “final accounting,” which check for $296.61 was indorsed by plaintiff and cashed, constituted an accord and satisfaction of the transactions between these parties; and further since prior to bringing his suit plaintiff did not return the cheek or its equivalent or tender return thereof to defendant, plaintiff could not maintain this action. The hearing, involving an accounting, resulted in its being ■decreed that defendant pay plaintiff $3,633.70 and return to plaintiff designated personal property of the value of $1,690.50. Defendant has appealed.

Plaintiff, a resident of the State of Georgia, for a number of years had been in the business of raising, selling and supplying Italian bees and beekeeper supplies. Defendant, a resident of Oakland county, Michigan, was in the business of caring for bees and marketing the honey and wax produced. In the spring of 1947 plaintiff had on hand a large quantity of bees, and about that time realized that the possibility of selling these bees was becoming increasingly less. On or about May 1, 1947, plaintiff arid defendant entered into negotiations, and, pursuant to a verbal agreement then made, plaintiff alleges he shipped to defendant “approximately 1,200 packages of bees” and also sent 2 men to de *120 fendant’s place of business at Milford, Michigan, “to operate and care for said bees during the honey-producing season of 1947.” It is also alleged by plaintiff that defendant stated to - plaintiff that he (defendant) had the equipment necessary to operate approximately 1,000 colonies of bees. Plaintiff in his amended bill of complaint further alleges that he also shipped to defendant 182 hive bodies with frames and foundations valued at $820, and 620 drawn combs valued at $180, “which equipment was to remain the property of the plaintiff;” but defendant claims that he paid for these items and they thereupon became his property. The trial judge found that the noted items were furnished by appellee to appellant, and in 1948 appellee shipped to appellant 1,774 swarms of bees of the alleged value of $8,503 and paid shipping charges of $728.51.

On this appeal appellant does not challenge the amount or items for which an accounting was decreed in the circuit court; but instead he presents only the 2 questions about to be considered:

“1. Did the submission of. a final account by the defendant and appellant to the plaintiff and appellee, on November 16, 1948, accompanied by plaintiff (defendant) and appellant’s check for $296.61, constitute such an accord and satisfaction as to bar plaintiff and appellee’s right to recover in this action ?
“2. Having accepted defendant and appellant’s check in settlement could the plaintiff and appellee maintain this action in the absence of return to defendant and appellant of the amount of said check and of a rescission of said accord and satisfaction?”

Appellant asserts the circuit judge erroneously concluded that the first of these questions should be answered negatively and the second affirmatively. Each is aimed at the same result, a decree dismissing plaintiff’s bill of complaint. In appellant’s *121 brief they are treated, and properly so, as though the second issue presented was germane to the first.

Briefly the factual background, in addition to that above noted, may be stated as follows: The 1947 transactions incident to this joint adventure are not materially involved in this appeal. The business netted little or no profit in 1947. But the season of 1948 was more favorable, and appellee asserts:

“There was a substantial crop of honey produced in the summer of 1948, amounting to approximately $13,900 worth of comb honey; 975 sixty lb. cans of strained honey and 1,520 lbs. of beeswax. The strained honey was divided equally between the parties at the time it was harvested.”

The instant controversy at least in part arises from appellee’s contention that appellant did not account for i of the beeswax, that he failed to return to appellee certain specified personal property of the value of $1,690.50, and further that appellant wrongfully seeks to charge appellee with \ of all expenses incident to .the 1948 business. In a letter from appellant to appellee dated November 16, 1948, appellant embodied an itemization of what he claimed were the respective debit and credit items of the account between the parties. The result as asserted by appellant was that he was indebted to appellee for $296.61. It was appellant’s check for that amount which was indorsed by appellee and the proceeds retained by him. This letter of November 16, 1948, began with the following words: “The enclosed is our final accounting;” and immediately following the numerous items of debit and credit, which as contained in the letter resulted in an apparent indebtedness of defendant to plaintiff of $296.61, appellant wrote: “I am enclosing my check for $296.61 which completes the business.”

*122 Appellant relies upon the 2 quoted statements in his letter of November 16th in asserting that appellee’s receipt of the statement embodied therein, accompanied by the check for $296.61 which appellee indorsed and retained the proceeds, constituted the accord and satisfaction, in consequence of which appellee’s suit should be barred. And in any event, it is appellant’s contention that since appellee accepted and retained the proceeds of the check, and has not at any time tendered return of the same to appellant, appellee’s present action should be held to be barred.

Appellee in denying there was an accord and satisfaction and in asserting his right to maintain this suit urges various reasons, among which are the following:

“(1) Doing only what the defendant was legally bound to do affords no consideration for accord and satisfaction; (2) Part performance of an accord is not accord and. satisfaction; (3) There cannot be an accord and satisfaction without a meeting of the minds of the parties.”

As to (1), it is apparent that in forwarding his check for $296.61 appellant did no more than what he admitted he was legally bound to do. In fact, he did only a portion of that which he was legally bound to do, as we are about to note herein.

“An accord and satisfaction, being a contract, must be supported by a good or valuable consideration in order to be given effect.” 1 Am Jur, Accord and Satisfaction, § 37, p 235.
“It' is too well settled to require the citation of authorities that doing what one is legally bound to do is not a consideration for a new promise.” Doebler v. Rogge, 221 Mich 508.

As to (2) above, the record discloses that appellant in his letter of November 16th, wrote: “I will *123

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Bluebook (online)
50 N.W.2d 740, 332 Mich. 117, 1952 Mich. LEXIS 542, Counsel Stack Legal Research, https://law.counselstack.com/opinion/puett-v-walker-mich-1952.