Valley Asphalt, Inc. v. Stimpel Wiebelhaus Associates , 3 F. App'x 838 ( 2001 )

F I L E D
United States Court of Appeals
Tenth Circuit
FEB 5 2001
UNITED STATES COURT OF APPEALS
TENTH CIRCUIT PATRICK FISHER
Clerk
VALLEY ASPHALT, INC., a Utah
corporation,
Plaintiff - Appellant,
and
BCFM, INC., a Nevada corporation, d/b/a
Z-Rock,
Plaintiff - Counter-Defendant,
v.
No. 00-4000
(D.C. No. 98-CV-252)
STIMPEL-WIEBELHAUS
(District of Utah)
ASSOCIATES, a California corporation;
RELIANCE INSURANCE COMPANY, a
Pennsylvania corporation,
Defendants - Counter-Claimants -
Appellees,
and
NASEEM A. CONDE; THOMAS W.
SMITH; LORRAINE MEWHIRTER,
Defendants - Counter-Claimants.
ORDER AND JUDGMENT*
Before BRISCOE and PORFILIO, Circuit Judges; and MARTEN,** District Judge.
Valley Asphalt, Inc., appeals from summary judgment dismissing all its claims
against Stimpel-Wiebelhaus Associates (SWA). Valley claims the district court did not
apply correct legal standards to its decision, relying on state law of accord and satisfaction
rather than federal law concerning standards for suits brought under the Miller Act, and
genuine issues of material fact make summary judgment inappropriate. We affirm.
This court reviews a grant of summary judgment de novo, applying the same legal
standard employed by the district court. Butler v. City of Prairie Village, Kansas, 172
F.3d 736, 745 (10th Cir. 1999). We examine the record and reasonable inferences
therefrom in the light most favorable to the party opposing summary judgment. Id.*
This order and judgment is not binding precedent, except under the doctrines of
law of the case, res judicata, and collateral estoppel. This court generally disfavors the
citation of orders and judgments; nevertheless, an order and judgment may be cited under
the terms and conditions of 10th Cir. R. 36.3.
The Honorable J. Thomas Marten, United States District Court Judge, District of
**
Kansas, sitting by designation.
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The parties are well aware of the facts. We, therefore, find no need to set them
forth in this disposition. Nonetheless, it is evident to us this appeal comes before us
simply because of a confusion between the doctrine of accord and satisfaction and the
doctrine of waiver. That confusion resolved, the appropriate result is easily achieved.
Valley’s appeal rests on its reliance upon authority dealing with waiver in the
context of the Miller Act. While that authority is unimpeachable in the context in which
it arises, it has no application in this case for a fundamental reason. After depositing the
SWA check that had been tendered in full payment of a disputed amount, Valley had no
right of action to waive. In oral argument, counsel for Valley conceded if the Miller Act
had no application here, the district court correctly ruled on the law of accord and
satisfaction. What counsel refused to concede was the accord did not extinguish Valley’s
claim for additional amounts or that the amount due it resulting from the accord was
satisfied upon deposit of the check. Therein, however, lies the rub, for the doctrine of
accord and satisfaction mandates that result.
Moreover, it is unquestionable the rules of accord and satisfaction are applicable to
cases brought under the Miller Act just as in other commercial litigation. See Hoeppner
Constr. Co. v. United States, 273 F.2d 835 (10th Cir. 1960), and J.F. White Eng’g Corp.
v. United States, 311 F.2d 410 (10th Cir. 1962). Indeed, the Miller Act does not replace
generally accepted principles of commercial litigation, F.D. Rich Co. v. Industrial
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Lumber Co., 417 U.S. 116, 130 (1974); Nickell v. United States, 355 F.2d 73, 76 (10th
Cir. 1966).
In its brief, Valley argues even under the rules of accord and satisfaction, genuine
issues of material fact exist here to make summary judgment improper. Valley argues
there is enough manifestation of its intent not to accept the final payment in its
correspondence with SWA to present a genuine question of material fact. We disagree.
The elements of accord and satisfaction are simple and clear. There must be: 1) a
bona fide dispute over an unliquidated claim amount; 2) a check tendered in full
settlement of the claimed amount; and 3) acceptance of the payment. Valley does not
dispute the existence in this case of the first two elements. Utah precedent, federal
precedent, and commentators have all made clear retention of a check offered as payment
in full constitutes assent to the accord and satisfaction even if the recipient of the check
notifies the sender it is accepted only as a partial payment. See, e.g., Estate Landscape v.
Mountain States, 844 P.2d 322 (Utah 1992); Marton Remodeling v. Jensen, 706 P.2d
607 (Utah 1985); Teledyne Mid-America Corp. v. HOJ Corp., 486 F.2d 987 (9th Cir.
1973); Hoeppner Constr. Co. v. United States, 273 F.2d 835 (10th Cir. 1960);
Restatement (Second) of Contracts, § 281, Comment d; 6 Corbin, Contracts § 1279
(1962). In other words accord and satisfaction “does not necessarily involve mental
assent.” Hoeppner, 273 F.2d at 837.
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We believe the district court correctly granted summary judgment. Its judgment is
therefore AFFIRMED.
ENTERED FOR THE COURT
John C. Porfilio
Senior Circuit Judge
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