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Studstill v. American Oil Co.
126 Ga. App. 722
Ga. Ct. App.
1972
Check Treatment

*1 false). (all demands of which was many to its attention Parks, distinguish White seeks majority opinion The like is more Southeast by saying supra, (184 SE2d Woodruff, Bankcard v. with each other. equated cannot be These two cases Not so. the control- does not comment majority opinion The Pritchett, 108 Ga. Tel. Co. v. Union ling case Western decision. judge six 411, 415, which is full-bench supra, has not Conway that Mrs. argues majority opinion that is erroneous. She has damages, but any special pleaded with; her eco- was interfered that her pleaded employment affected; adversely her employer nomic position with her relationship employer and personal her business affected; that her men- adversely and fellow employees damaged; that she lost the tal and health were physical had with formerly character she of unblemished prestige her that the letter wounded co-employees; her employer that the letter was placed her feelings; happiness; disturbed she testified she had Further, in her depositions in her file. not required She was employment. received demotion to plead special in order expenses to plead out-of-pocket damage. affirm trial court in

I, therefore, dissent and would for summary judgment. the motion overruling Deen Judges Pannell and I am authorized state join this dissent. AMERICAN OIL COMPANY.

47019. STUDSTILL v. *2 9, 1972— 1972— Submitted March Decided June Rehearing July 19, 1972 denied *3 Cravey, C. for appellant. Rembert Smith, Ed Harrington, appellee. for Smith Will (Code Checks are demand Ann. Judge. payable Deen, (2) (b) a reasonable time after issu- 109A-3—104 within § certified, is a and, days to be considered ance when (Code for in Ann present payment time which reasonable (2) (a)). . not payment "Bank checks. . are 109A-3—503 § " by agreement 20-1004. 'An paid.” until themselves Code § his debt can receive than the amount of creditor to less it be satisfaction, unless as an accord pleaded not be giv- of the or the money, by executed actually payment of another or the substitution security, of additional ing debtor, other consideration’, and, or some new . . in . agreement absence of an contrary, to the check bank thus tendered as in full is not it payment such until is itself (Colfax Gin paid” Buckeye Co., Cotton Oil (2) 697)) or unless the is check itself ac cepted as payment. Wilson, Interstate &c. Co. Life (2) App. 171

itWhile is clear that an satisfaction, executed accord and or accepting money cashing check in given full settle- ment for than demand, less the amount of the inis bar (Rivers an action to collect any Corp., excess Cole 196)) and while retaining check an un- length of may reasonable time lead to the conclusion legal (cases has fact been as accepted payment below) which nevertheless, effect are discussed "an agree- ment by a creditor to receive less than amount of his pleaded debt cannot be accord satisfaction, as an unless actually be executed by money or ... some other new consideration.” Code (Emphasis 20-1204. sup- plied.)

It if it follows is intended to accept a check as pay- ment demand, that check should be presented promptly for payment, usually Where, within a 30-day period. absence of suggesting circumstances a contrary state of facts, cashed, although not is for a kept period greatly time, excess of this such retention may itself (accord) cause the rely debtor to on the theory that offer his (satisfaction), has been accepted in which the creditor case no longer right has of action for That, the excess. how- ever, is not the situation It was perfectly here. clear to both parties long as six after the months initial action of the company in forwarding the check that the had not and would not it if it was to *4 accept be construed as an ac- cord and satisfaction. by This is of shown the letter October 12 which client, commences: "I assume that your must Mr. Studstill, Jr., Jack has not to offer, chosen our accept as Mr. Studstill has not our negotiated By draft.” that time the stale, check was a already since bank is under no obli- than a certified a to a other pay gation customer after months its more than six check, which is presented it in plaintiff’s was the 109A-4—404. Nor date. Code Ann. entered. summary the order was possession when agree- has no that there been recognize Where both parties to a time when there is very at close ment in existence or even if the to honor the instrument obligation no drawee no obviously meeting there has been be presented, should "It only settlement. is the compromise of the minds on due, and the amount one there a as to dispute when is that it reciting a and the other check accepts tenders party the is subse- demand, in full check is of in payment and retention of check reception that the quently paid, v. Moul- Meeks can set accord and satisfaction.” up be as 445). (Emphasis supplied.) ton, 46 Ga. SE gave for that he his trespass, "A one by defense sued damages the for is of claim promissory notes settlement recovering plaintiff not the from prevent sufficient that action, it is the the cause of unless shown original agree- an express or that there was paid notes have been that the should be received parties

727 check; the check is accepted settlement an accord if full and satisfaction will result. Here the evidence is clear that $10,000 never at time any accepting considered in full damage. Gay settlement his individual v. Ameri- (153 612) Co., can Oil 115 Ga. 18 SE2d is also a App. case an involving lease attempted forfeiture where landlord check, retained rent and follows Pan-American Ins. Life Co. v. supra, merely holding retention of the to a check amounted waiver of the In Holton forfeiture. (163 346) Dodge, Baird, Inc. v. 118 Ga. 316 App. SE2d plaintiff did in fact execute a accept written settlement and thereof, draft and the case holds that after these acts cannot she rescind the settlement in the absence of fraud her. practiced upon Baggett Chavous, v. Ga. 107 (131 109) 642 App. SE2d holds that retention check for an unreasonable time without and cashing without indicat- ing to accept it as an and accord will refusal satisfaction constitute In acceptance. Gibson v. Filter Queen Co., 109 (136 922) Ga. App. 650 SE2d an accord and satisfaction was accomplished where an agreement between the and vendee vendor to rescind the contract was executed the vendee returning the property to vendor.

Mere retention of a stale where the de evidence mands a finding that there was knowledge on the part the debtor at the time the creditor refused accept in full satisfaction of the unliquidated liability, and where the check was, was never cashed and at the time of the summary order, in judgment the hands of maker, will not support a judgment accord and Anything satisfaction. Fidelity to the contrary M., Ltd., Cas. Co. v. C. E. B. (156 116 Ga. 92 App. 467), SE2d must yield to the statute law and precedents older hereinabove cited.

The trial in granting summary court erred judgment. Judgment Stolz, reversed. Pannell JJ., and Hall, concur. J., and Evans, J., P. concur in only. Bell, C. J., Eberhardt, J., Quillian P. Clark, JJ., and dissent.

Hall, Presiding concurring Judge, dubitante. As to the confusion of the law on 1 Georgia point this see CJS 728 55; footnote 13 Satisfaction, and Accord §34 Satisfaction, 321-322, 1 AmJur2d Accord 738;

ALR2d (31 184); Stewart, 105 & Co. 300 SE Hamilton Ga. §23; Jen 123); Ga. Hamilton & Co. Assn., 111 Ga. 732 Bldg. Mut. &c. kins v. National Co., Buckeye Cotton Oil Gin 945); Colfax Chavous, Baggett 697); M., Ltd., E. B. & Cas. v. C. Fidelity 109); SE2d *6 only after there has been The law become clarified will is that cer- highest My hope our court. definitive opinion granted. and sought tiorari will be voting four to affirm judges The stands with case now of the trial voting to reverse the judgment and four judges other, or I to con- go I one vote way court. Since must in the of reversal. dubitante cur The Judge, dissenting. uncontradic- Presiding Eberhardt, draft, as fair and discloses that tendered ted evidence settlement, in the of the retainéd hands equitable 19, 27, until attorney April July or his from 1970 months, and that from year and three period 1971—a 1970, it for a of more than 25, kept August period months, requests negotiation its despite repeated eleven or return. in settlement of a dis- a check or draft is tendered

When receiving pro- of the it to duty party claim is puted it, and if he negotiate or return promptness ceed Hamilton does an accord and satisfaction results. neither Stewart, Plowden 123); 472, 476 108 Ga. (1) (190 Hall, Pan American 37); 321 App. Life 326); Gay v. Ins. 57 294 App. Ga. 612); Fi- Co., 115 18, American Oil SE2d Ga. M., Ltd., v. C. delity & Cas. Co. E. B. Baird, Dodge, Holton Inc. v. Ga. 467);

SE2d Mr. the draft There no doubt that was tendered can be damage. and his claim for injury Studstill in settlement of indi- enclosing it so notation and letter Both draft 25, August 1970, cate. Moreover from until filed suit was 22, 1971, Aetna so April repeatedly informed Mr. Studstill or his attorney, requested negotiated it be or re- turned.

The rule is expressed Fidelity & Cas. v.Co. C. E. B. M., Ltd., 116 Ga. App. supra, which very soundly rests the decision of the Supreme Court Hamilton & Co. supra. retention the draft was, law, here as for an time, matter unreasonable an accord and satisfaction had occurred before the suit was filed.

A contention that the draft had stale become before the suit was and that filed thus the bank would have been au- (2) (a) thorized under Code Ann. 109A-3—503 to dishonor it, and return does not require different It conclusion. should have been or used returned before oc- staleness curred. Who brought about If staleness the demand? draft had become stale because the had issuer stopped it, very we should have a different situation. itBut does not lie in the mouth of payee to assert that against defense the plea when that situation results from his retention of the draft in the face of requests from *7 the issuer that he to proceed negotiate it or return it. Cf. (74 770). Bolton, Sims v. 138 Ga. 73 SE Moreover, it ap- pears to, that up and even past the time when suit was filed, Aetna asking the that draft be negotiated or re- turned, which an carries it if assurance that negoti- ated the draft be paid, would whether stale or not. if Even bank the were not it, bound to honor the nevertheless maker was bound to pay Haynes it. Wesley, v. 112 668 Ga. (37 990, SE 81 72); ASR Byrd Printing Co. v. Whitaker Co., 135 Paper 798, Ga. 865 182); SE AC 1912A (166 601). Blayton, Mason v. 119 Ga. 203 SE2d App. Nor does the a principle that bank check or draft is payment until is itself 20-1004, found Code paid, a require different result. ruling [that "The same an accord and satisfaction has applies claimant, resulted] where the receiving instead of a money claim, settlement of his 730 the other in full settle- party or draft from check

receives though the claimant the And this is so even ment of claim. . not, draft, and the check or to, no effort does cash makes other Pan- party.” it back to the subsequently tenders and 294, App. supra. Co. v. 57 Ga. Ins. American Life Birmingham Air- Atlanta & Redmond & Co. v. See also (58 874); Mut. v. National R., 129 133 SE Jenkins Line Ga. (36 945); Thompson v. Assn., 111 Ga. 732 SE Bldg. &c. (139 126); Dry Bass Goods Hecht, 110 505 App. Ga. 1134). (61 Co., SE App. Roberts 4 Ga. 520 Coal satisfaction, of not one of is one accord and plea The here may very While payment There is difference. payment. satisfaction, an and it does not follow that well accord work and sat- working accord agreement, while compromise of draft in isfaction, sending to payment. amounts and compromise of claim an offer of set- settlement unliquidated claim, and and Mr. disputed tlement it, and despite requests retention receipt Studstill’s it, setting up return him from negotiate estops he it or if cases, his "In such acceptance denial of offer. to willing tenders the sum as which he is concede debtor it is to in full liability, accepted condition that be set- tlement, not retain the creditor must decline the tender and or other offered in money, thing and use value he settlement,” "notwithstanding pro- full and this is true tests, time, at the the remainder of his claim is still Co., 4 Dry Bass Goods Co. v. Roberts Coal owing.” due than 520, supra. "Nothing Ga. could be clearer person prop- that where one delivers another proposition stated, party to be retained a condition re- erty, not retain the ceiving property repudiate can Hamilton & condition.” Ga. Burgamy Holton,

SE Accord: Rogers, 42); Wilcox, Ives & Co. v. 219); Progressive Co., Pub. Ryan Retailer Ga. Co., 116 834); v. Continental Gin Hornbuckle *8 E. 829); Fidelity Cas. Co. v. C. B. Ltd., M., supra. majority simply ignores the condition which the check or draft was delivered, an flowing acceptance and the result from for of length retention of instrument an unreasonable time, the condition never having been withdrawn. for summary judgment properly

Defendant’s motion sustained.

I am authorized to state that Bell and Judge Chief Quillian Clark Judges join this dissent.

47209. BAILEY v. TODD. Judge. This is in a minor appeal behalf of plaintiff Clark, from for pedestrian adverse verdict the motorist 3, 1969, whose car On injured child. February of occurrence, date years in- old. Her juries were received when she was an Atlanta crossing street from descending after an Atlanta System Transit bus. The case for three was tried days jury before from evidence sides which both resulted in a verdict defendant. There are of 29 enumerations error of which relate charge the court. These are herein considered they order were presented excepting this court together those lumps which appropriately should be dealt with unit order to limit reason- ably the length of this opinion.

1. The first four enumerations deal with con- evidentiary

flicts. Plaintiff made a motion for a directed verdict sup- plemented subsequently by motion for notwithstanding verdict along with motion for new trial containing general grounds and a special enu- meration of error alleging "there was any competent or probative evidence whatever the verdict of supporting jury June 1971, for the defendant in this case.” We have read the entire transcript trial and find pages the trial court was not in error in ruling questions this case presented of fact for determination ment notes between damages.” as of his claim by payment the plaintiff Lee, SE Here there is Brantley 109 Ga. 478 to re- agreed no showing expressly that ever fact, is contrary estab- payment; the check ceive beyond dispute. lished require do contrary appellee The cases cited In Hamilton & Co. ruling. 123) was fact to cover balance check 37) Hall, In cashed. Plowden v. for the and held the tenant’s check accepted landlord him for to evict attempting in which he was very period rent; that the check being showing there no nonpayment facts void, it showed undisputed held on which evic- period in arrears for the tenant was not in Pan-Amer- The rule is stated tion was based. proceeding 326) Ins. Co. ican Life or a the tender be cash not whether matters

Case Details

Case Name: Studstill v. American Oil Co.
Court Name: Court of Appeals of Georgia
Date Published: Jun 21, 1972
Citation: 126 Ga. App. 722
Docket Number: 47019
Court Abbreviation: Ga. Ct. App.
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