Court Opinion

ID: 9702578
Source: CourtListenerOpinion
Date Created: 2023-08-25 23:17:28.446227+00
Date Added: 2024-06-11T18:21:39.052040
License: Public Domain

BERGER, Justice,
dissenting:
The majority affirms the trial court out of deference to its finding that there was no bona fide dispute based upon mutual good faith. I agree that a trial court’s factual findings should be respected unless they are clearly wrong. The determination of whether there is a good faith dispute, however, is not simply a question of fact. It is a mixed question of fact and law.17 The trial court never identified any legal standards by which it was deciding the existence or absence of a good faith dispute. Had it done so, the court’s findings of fact would have supported the legal conclusion that there was a good faith dispute sufficient to support an accord and satisfaction.
It is settled law that a party need not have a meritorious claim in order to establish a good faith dispute for purposes of the doctrine of accord and satisfaction. The party need only establish “some justification” for its position; enough to show that the claim is not arbitrary or pretextual:
Plaintiff must show only that there is some justification for its contention and that the dispute does not represent a mere arbitrary refusal on the part of plaintiff to pay a just indebtedness. It make no difference whether the dispute involves a question of fact or of law. The fact that plaintiff paid to defendant only the amount which is *1071conceded to be due and which it was previously bound to do is of no significance. The payment of an amount admittedly due will support a promise to discharge the whole claim. However, a defense based upon a pretext to avoid the discharge of an obligation or one which is merely set up for the purpose of avoiding a just claim is not sufficient to support an attempted satisfaction of the claim by a partial payment. [Citations omitted.]18
In short, a party may be absolutely wrong and still have a good faith dispute that is subject to resolution through an accord and satisfaction.
The trial court’s factual findings strongly suggest that there was a good faith dispute:
1. On August 31, 1990, Acierno and a soil expert inspected the job site. “It had rained the night before. Acierno ... was concerned with the visible pooling of water at various locations on the lot. He was also concerned about ‘pumping’ in certain areas of the lot, indicating that the subsoil was not adequate. He did not want additional hot mix placed because he felt there were problems.19
2. “Acierno hired R.A. Boyer (‘Boyer’), a paving contractor, to complete the paving and to cure what Boyer perceived to be a drainage problem at the site.”20
3. On or about November 6, 1990, there was a meeting between representatives from Holdings, Worthy and Boyer. “The purpose of the meeting was to resolve the dispute between F.A. Holdings and Worthy.”21
4. “[T]he parties engaged in arm’s length negotiations ... at the November 6th meeting. However, concerning the Boyer bill, the parties took away different conclusions. Acierno, Krapf, Boyer and Cullen concluded that the Boyer bill was settled. James Worthy and Riggin believed that the Boyer bill was an outstanding matter ... The Court does not doubt that Acierno honestly believed that Worthy was assenting to a full and final payment. Likewise, the Court accepts that Worthy, at the meeting, honestly believed that further payments from Holdings would be required before the matter was definitely settled ... The Court concluded that the two men simply thought that they were shaking hands on two completely different deals.”22
These facts establish that there was a genuine dispute between the parties. The only question is whether there was “some justification” for Holdings’ contention that its payment to Boyer should be deducted from the amount owed to Worthy. Although the trial court ultimately determined that the drainage problems were the result of faulty plans rather than faulty workmanship, the court acknowledged that Boyer dug up and repaired work done by Worthy to correct a pumping problem.23 Holdings did not have to give Worthy the opportunity to cure the problems in order to establish its good faith. It only had to have some justification for its claim.
I would remand and ask the tidal court to evaluate its factual findings in light of the legal standard governing the existence of a good faith dispute. I realize that yet another remand would delay the final disposition of this case, but I think this record requires additional review. Accordingly, I respectfully dissent.

. Wilmington Stevedores, Inc. v. Steel Suppliers, Inc., Del.Supr., No. 80, 1986, Walsh, J., 1986 WL 16973 (June 11, 1986) (ORDER).

. Modern Dust Bag Co. v. Commercial Trust Co., Del.Ch., 104 A.2d 378, 380 (1954).

. Worthy Bros. Pipeline Corp. v. Acierno, Del.Super., C.A. No. 90L-10-2-ML, 1993 WL 485900 (September 22, 1993) (page 6).

. Id. at page 8.

. Id. at page 10.

. Worthy Bros. Pipeline v. Acierno, Del.Supr., C.A. No. 90L-10-2-ML, 1995 WL 654148 (October 11, 1995) (pages 9-11).

. Worthy Bros. Pipeline Corp. v. Acierno, Del.Super., C.A. No. 90L-10-2-ML, 1993 WL 485900 (September 22, 1993) (page 9).