136 So. 3d 807
La. Ct. App.2013Background
- CMS billed Health Net $1,516,965.50 under invoice #5762 for 19 software units and VISN 16 maintenance; Health Net disputed all charges except VISN 16 maintenance and paid $20,639.50.
- Health Net’s April 12, 2011 letter expressly stated it never agreed to pay for items beyond VISN 16 maintenance and identified the disputed scope.
- May 11, 2011 Health Net sent a check for $20,639.50 with a cover letter stating payment in full for charges in invoice #5762; the check bore the notation PAYMENT IN FULL and CMS endorsed and deposited it.
- CMS later filed suit (July 24, 2012) seeking the remaining unpaid amounts, arguing reliance on Health Net’s representations.
- Health Net moved for summary judgment on grounds of accord and satisfaction; the trial court granted summary judgment and dismissed CMS’s claims with prejudice (Jan. 11, 2013).
- Court affirms, holding Health Net satisfied the elements of accord and satisfaction and CMS accepted the settlement by negotiating the check.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether accord and satisfaction elements exist | CMS argues genuine issues of fact on intent and understanding | Health Net asserts all three elements were met: disputed claim, tendered check for less, creditor accepted | Yes, accord and satisfaction established |
| Whether summary judgment appropriate given material facts | CMS contends facts remain about understanding of payment | Court correctly applied summary judgment standard; no genuine issue remains | Yes, summary judgment affirmed |
Key Cases Cited
- Eppling v. Jon-T Chemicals, Inc., 363 So.2d 1263 (La.App. 4th Cir.1978) (clear language can show tender was for full settlement)
- River Bend Capital, L.L.C. v. Lloyd’s of London, 63 So.3d 1092 (La.App. 4th Cir.2011) (tendered check with clear terms can bind if understood as settlement)
- RTL Corporation v. Manufacturer’s Enterprises, Inc., 429 So.2d 855 (La.1983) (facts distinguished; later conduct showed no settlement here)
- Fischbach and Moore, Inc. v. Cajun Electric Power Cooperative, Inc., 799 F.2d 194 (5th Cir.1986) (ambiguous check and transmission can raise issues precluding summary judgment)
- Ryan v. State Farm Mutual Automobile Insurance Company, 68 So.3d 569 (La.App. 1st Cir.2010) (required notice that payment is in full to support accord and satisfaction)