April 19, 2013

Accord and satisfaction.

Practice point: Here, there were a number of factual disputes as to which accounts would form the basis of decedent's commissions, the amount due on those accounts and whether the final yearly tally contained amounts constituting gifts. The motion court properly found that there was no evidence of an accord and satisfaction for commissions payable during the year 2002 based upon the conflicting claims for that year. Although the checks issued by defendant to decedent for commissions bore the notation "settlement," the doctrine requires a clear manifestation of intent by the parties that the payment was made, and accepted, in full satisfaction of the claim.

Student note: Accord and satisfaction requires the existence of an actual dispute, manifested by a specific demand by the alleged creditor and an express, good-faith disagreement with that demand by the debtor.

Case: Rosenthal v. Quadriga Art, Inc., NY Slip Op 02475 (1st Dept. 2013).

Here is the decision.

Monday's issue: Motion to dismiss a legal malpractice claim.