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AFC Interiors v. DiCello
Supreme Court of Ohio
N.E.2d 869 (1989)
Nicholas DiCello (defendant) entered into a contract with AFC Interiors (AFC) (plaintiff) for furnishing and decorating services. AFC sent invoices to DiCello for its work. However, DiCello never paid the money he owed AFC. AFC sued DiCello, alleging that DiCello breached their contract. AFC moved for summary judgment, but then the suit was referred to arbitration. AFC won the arbitration and was awarded damages of $15,000. While the arbitration was pending, DiCello sent a check to AFC. On the back of the check, DiCello wrote, “[p]ayment in full for any and all claims against Nick DiCello.” AFC crossed out this phrase and replaced it with “Payment on Account,” then cashed the check. DiCello then moved for summary judgment on the ground that under common law, when AFC cashed the check, this action acted as an accord and satisfaction of DiCello’s debt to AFC. The trial court granted DiCello’s motion for summary judgment. AFC appealed, and the court of appeals affirmed the trial court’s decision. AFC appealed again.
Rule of Law
Holding and Reasoning (Sweeney, J.)
Dissent (Brown, J.)
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