December 20, 2007

The Second Department found that defendant's submissions in his motion to dismiss were sufficient to establish the existence of an accord and satisfaction by way of a substituted agreement, in Gibbs v. Moore, which was decided on December 11, 2007. They clearly manifest the parties' intent that the obligation incurred by a promissory note would be satisfied by defendant's execution of a Separation Agreement settling a Maryland divorce action pending between him and plaintiff's daughter. The Separation Agreement was signed on the same date that the parties signed a discrete agreement as to the promissory note. That note agreement referenced the Separation Agreement and expressly provided that the promissory note was "hereby paid and satisfied" and that it "shall be so marked." That this was the parties' intent is further confirmed by the handwritten phrase, "Satisfied in full," in what appears to be plaintiff's own hand, on the original promissory note, and plaintiff's inscription of his signature immediately under that term.