Afc Interiors v. Dicello

544 N.E.2d 869 (1989)

Purchase the Printed Copy at bsmsphd.com

Nature of the Case

To access this section all you need to do is click here and register.

Facts

In June 1984, P and D entered into an oral contract whereby P would perform certain interior decorating services for P. P performed and furnishings were purchased by P and delivered to D. Invoices were sent to D. D did not pay. P sued D. The suit was referred to arbitration and P was awarded $15,421 and that D was entitled to the return of the goods, except for a desk. D then sent a letter to D stating that he was returning the specific items that he no longer wanted pursuant to their oral contract, and enclosed a check containing a notation on the back, 'payment in full for any and all claims against Nick DiCello.' P received the merchandise and the check. P then crossed out the notation on the back of the check and inserted the words 'Payment on Account.' P negotiated the check. D filed a motion for summary judgment based on the negotiated check and accord and satisfaction of the underlying debt. The trial court agreed and granted D’s motion. The appeals court affirmed in that R.C. 1301.13 permits a creditor to reserve its rights when cashing a payment-in-full check, the appellate court opined that R.C. 1301.13 (UCC Section 1-207) applies to the sale of goods and not to payment in full checks.' P appealed. P argues Section 1-207 should supersede the doctrine of accord and satisfaction in the 'full payment' or 'conditional check' situation where the payee reserves his or her rights to pursue the balance of the debt alleged to be owed.