Opinion ID: 2570475
Heading Depth: 1
Heading Rank: 3

Heading: the magistrate court correctly granted summary judgment in favor of roundy pole.

Text: Both parties acknowledge that they were using a mutual account whereby credits and debits would be entered reflecting various transactions. Eagle Water maintains that the credit it entered on the Roundy Pole account on December 30, 1991, was the final transaction which commenced running of the statute of limitations. Roundy Pole argues that the return of the tractor on November 15, 1991, was the last transaction between the parties for purposes of determining if the action was barred by the statute of limitations. I.C. § 5-222 provides: Actions on open accountsAccrual of cause.In an action brought to recover a balance due upon a mutual, open and current account, where there have been reciprocal demands between the parties, the cause of action is deemed to have accrued from the time of the last item proved in the account on either side. In Kugler v. Northwest Aviation, Inc., 108 Idaho 884, 887, 702 P.2d 922, 925 (Ct.App. 1985), the Court of Appeals analyzed the applicability of the statute of limitations when the parties engaged in transactions amounting to a mutual open account: Where an open account exists the parties are deemed to intend that individual items on the account will not be viewed separately but that the account will be considered as a connected series of transactions. See generally 1 AM.JUR.2d Accounts and Accounting § 4 (1962). When an open account is unilateralthat is, with all charges made by one party against the otherthe majority rule appears to be that a statute of limitation will run from the date of each item. Id. at § 15. But if an open account is mutualwith both parties charging each otherthe courts have treated the statute of limitation as running from the date of the last item proven by either party. In McCarthy v. Paris, 46 Idaho 165, 173, 267 P. 232, 233 (1928), this Court determined that the relationship between an employer and employee gave rise to a mutual, open and current account and that the statute of limitations did not begin to run until the service ends. Eagle Water argues that in McCarthy this Court focused on the check entered in the account ledger, which established the time from which the statute of limitations began to run. Eagle Water contends McCarthy is similar to this case because the last item acknowledged by both parties is the credit payment given by Eagle Water to Roundy Pole on December 30, 1991, which established the credit balance owing from Roundy Pole. The Court of Appeals disagreed with Eagle Water's position: Accordingly, history and precedent suggest that the appropriate definition of the term item is the final underlying transaction. This interpretation conforms with the admission rationale which gave rise to the statutory language and is in harmony with case law. The four-year statute of limitation found in I.C. §§ 5-217 or 5-224 began to run on November 15, 1991. This action was filed more than four years after that date. We therefore affirm the magistrate's decision granting summary judgment to the defendants-respondents on Eagle Water's cause of action based upon a mutual, open and current account. Eagle Water Co., Inc. v. Roundy Pole Fence Co., ___ Idaho ____, 7 P.3d 1110, 1999 WL 107109 (Idaho Ct.App.1999). This Court agrees with the reasoning of the Court of Appeals. The grant of summary judgment by the magistrate is affirmed.