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Keywords

contractappealtrialcontractual obligation

appealtrialsummary judgmentappellantappellee

Related Cases

Affiliated Distillers Brands Corp. v. R.W.L. Wine & Liquor Co., 213 Md. 509, 132 A.2d 582

Facts

Affiliated Distillers Brands Corp. (Affiliated) sued RWL Wine and Liquor Co., Inc. (RWL) for the unpaid balance on a $600,000 demand promissory note, claiming a principal balance of $423,255.97. After granting RWL credits and receiving partial payments, the remaining balance due was $2,589.15. The trial court ruled in favor of Affiliated for this amount but rejected its claim for interest. RWL cross-appealed, seeking credits for taxes and insurance costs related to excess inventories.

On August 18, 1955, the appellant, Affiliated Distillers Brands Corp. (hereinafter called ‘Affiliated’) brought suit against the appellee, RWL, Wine and Liquor Co., Inc., (hereinafter called ‘RWL’) under summary judgment procedure, to recover the sum of $423,255.97, claiming this to be the principal balance then due on a $600,000 demand promissory note, together with interest on this unpaid balance.

Issue

Whether Affiliated was entitled to interest on the unpaid balance of the promissory note and whether RWL was entitled to credits against the balance due.

The maker cross-appealed from denial of certain amounts claimed as credits against balance due.

Rule

In Maryland, interest is generally left to the discretion of the court unless there is a clear contractual obligation to pay a liquidated sum at a certain time.

The general rule is that interest should be left to the discretion of the jury, or the Court when sitting as a jury.

Analysis

The court found that neither party knew the exact amount of RWL's indebtedness at the time of the demand for payment, and that Affiliated had extended credit without interest for an extended period. The court concluded that since the amount owed was not ascertainable until later, Affiliated was not entitled to interest on the amounts claimed.

The weaknesses of Affiliated's argument lie in the fact that neither it nor RWL knew the gross or net indebtedness of RWL on July 6, 1955 (this was not ascertained until several months later); that as soon as the balance was struck between them it was paid in full by RWL, with the exception of three items.

Conclusion

The court affirmed the trial court's judgment for the principal balance but modified it to include interest on certain amounts due from specific dates, ultimately ruling in favor of Affiliated for the principal amount and some interest.

We conclude that under the above circumstances the trial Court was correct in refusing Affiliated's claim for interest on the sum of $292,499.09 from July 6, 1955, until September 20, 1955.

Who won?

Affiliated Distillers Brands Corp. prevailed in part, as the court ruled in its favor for the principal balance owed, but it did not receive the full claim for interest due to the circumstances surrounding the demand for payment.

Judgment affirmed in part and modified in part, and affirmed as modified, and case remanded with directions.

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