Legal Question in Credit and Debt Law in Florida

Payment in Full Satisfaction to a Bankrupt Company
On Labor day 2002 Consolidated Freightways declared bankruptcy delaying and abandoning many Help-U-Move, Inc. shipments causing financial harm to our moving customers and Help-U-Move, Inc. Help-U-Move, Inc made several small conditional payments on each shipment initially while negotiating a settlement for reduced rate. During November 2002 we mailed several discounted payment offers of full satisfactions. Please note, detailed letters defining accord and satisfaction offer were sent along with checks stating paid in full see attached letter. Consolidated Freightways received and accepted all payment with full satisfaction, now one (1) year later Consolidated Freightways is claiming under bankruptcy laws the accord and satisfaction laws do not apply. Payment letters along with nine (9) separate check payments were received and cashed by CF in 2002.

We are based in Florida. CF was based in Oregon, incorporated in Deleware, and the checks sent to their Chicago IL lock box but they are suing us in California Bankruptcy Court.

Does their suit have merit or are they simply harassing us?

Asked on 12/12/03, 9:01 am

Alexander M. Rosenfeld Rosenfeld & Stein, P.A.

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Re: Payment in Full Satisfaction to a Bankrupt Company

The suit has merit. Moreover, an interstate carrier cannot accept less the the tariff rate.

Answered on 12/12/03, 1:29 pm

David Slater David P. Slater, Esq.

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Re: Payment in Full Satisfaction to a Bankrupt Company

If they filed for bankrulptcy, it is most doubltful they had authority to settle without court permission.

Answered on 12/15/03, 8:29 am

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