Opinion

J. F. Wilkerson Contracting Co. v. Sellers Manufacturing Co.

  • 73 N.C. App. 620
  • 327 S.E.2d 34
  • 1985 N.C. App. LEXIS 3340
Court
Court of Appeals of North Carolina
Filed
Mar 19, 1985
Status
Published
Author
Arnold
On the bench
Arnold, Wells, Eagles
Cited by
0 cases
Authority
More cited than 33.1%

The opinion

*622

ARNOLD, Judge.

Plaintiff contends that defendant owes it $7,500, an amount defendant deducted as liquidated damages from the total amount of $15,939.21 owed to plaintiff as final payment for construction work. Defendant deducted the $7,500 because plaintiff finished its work for defendant 150 days beyond the contract date and because the parties had agreed that defendant was entitled to liquidated damages of $50 per day for each day the project was not finished beyond the contract completion date. Defendant thus tendered a check for the lesser amount of $8,439.21 as “final payment” and contends that plaintiffs negotiation of it constituted a settlement of the account, an accord and satisfaction which estops plaintiff from seeking additional payment.

Defendant moved for summary judgment against plaintiff, which was granted by the trial judge. Normally, the existence of an accord and satisfaction is a question for the jury, but, “if the only reasonable inference is its existence or nonexistence, accord and satisfaction is a question of law and may be adjudicated by summary judgment when the essential facts are made clear of record.”

Sharpe v. Nationwide Mut. Fire Ins. Co.,

62 N.C. App. 564, 565 , 302 S.E. 2d 893, 894 ,

cert. denied

309 N.C. 823 , 310 S.E. 2d 353 (1983).

When two parties disagree about an amount owed, and the debtor tenders a check to the creditor as full payment, the creditor’s negotiation of the check constitutes an accord and satisfaction as a matter of law.

Sharpe,

62 N.C. App. at 566 , 302 S.E. 2d at 894 ;

Barber v. White,

46 N.C. App. 110, 112 , 264 S.E. 2d 385, 386 (1980);

Brown v. Coastal Trackways, Inc.,

44 N.C. App. 454, 455 , 261 S.E. 2d 266, 267 (1980);

Barger v. Krimminger,

262 N.C. 596, 598 , 138 S.E. 2d 207, 210 (1964).

The record in the present case indicates without doubt that prior to plaintiffs negotiation of the check tendered by defendant, the plaintiff and defendant disagreed on the amount defendant owed for the construction work. On 31 March 1981 plaintiff issued to defendant a bill for final payment in the amount of $15,939.21. On 6 July 1981 defendant sent plaintiff a check for $8,439.21. The accompanying voucher showed:

*623

15,939.21 Final Payment (7,500.00) Less $50.00 per day for 150 days over $8,439.21 Balance Due

A letter also accompanied the check. It read:

Mr. Don C. Kennedy, P.E. Bass, Nixon & Kennedy, Inc. 7416 Chapel Hill Road, Raleigh, N. C. 27607

Dear Don:

We are enclosing our check for $8,439.21 as final payment to J. F. Wilkerson Contracting Company.

According to your June 17, 1981 letter Wilkerson is penalized for being 150 days late in completing the project as contracted. Therefore we have deducted $7,500.00, or 150 days at $50.00 per day.

Please forward this check to Wilkerson and the extra copy of this letter enclosed for their records.

Yours very truly,

Sellers Manufacturing Company

si

Ben F. Bulla Ben F. Bulla, Treasurer

CC: Mr. Ben E. Jordan, Jr., President J. F. Wilkerson Contracting Co.

Enclosure 2

These documents indicate that plaintiff and defendant disagreed on the total amount owed, primarily because they disagreed as to whether or not plaintiff owed liquidated damages.

When plaintiff elected to accept defendant’s check this represented its acceptance of the balance due as final payment. Plaintiffs attempt to alter the terms of the letter and voucher is unavailing. Plaintiff had “to accept it [the check] on the terms offered by defendant or not at all, and . . . acceptance and negotiation of it constituted an accord and satisfaction despite [plaintiffs] attempt to characterize it otherwise.”

Sharpe,

62 N.C. App. at 567 , 302 S.E. 2d at 894 .

*624

An accord and satisfaction was established as a matter of law and the trial judge’s grant of a summary judgment was proper.

Affirmed.

Judges Wells and Eagles concur.

This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.

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