Northwestern Equipment, Inc. v. Badinger, 11334
Decision Date | 26 March 1987 |
Docket Number | No. 11334,11334 |
Parties | NORTHWESTERN EQUIPMENT, INC., Plaintiff and Appellee, v. Bill BADINGER, d/b/a Badinger Sand and Gravel, Defendant and Appellant. Civ. |
Court | North Dakota Supreme Court |
Jay D. Carlson, Fargo, for plaintiff and appellee.
Howe, Hardy, Galloway & Maus, Dickinson, for defendant and appellant; argued by Michael J. Maus.
Bill Badinger, d/b/a Badinger Sand and Gravel (Badinger), appeals from a summary judgment in favor of Northwestern Equipment, Inc. (Northwestern). We reverse.
Badinger and Northwestern had a business relationship for a number of years. On March 5, 1984, Badinger became indebted to Northwestern for the price of goods purchased from Northwestern. The invoice for the purchase bore a handwritten legend stating "60 days free of interest" and a typed legend stating:
Later purchase invoices bore only the typed legend.
When the indebtedness was not paid, Northwestern sued to recover the purchase price of the goods and interest. In his answer to the complaint, Badinger sought a forfeiture of all interest and 25% of the principal amount under Sec. 47-14-10, N.D.C.C.
Northwestern moved for summary judgment. It supported the motion with an affidavit setting forth several purchases and credits to Badinger's account and stating that interest was accruing at the rate of 1 1/2% per month. Northwestern presented as exhibits several invoices and credit memoranda and a "statement of interest service charges mailed to" Badinger, which indicated monthly service charges as of the tenth day of each month from July 10, 1984 through October 10, 1985. Northwestern also submitted a document showing service charges as of the twenty-fifth of each month from June 25, 1984 through April 25, 1986.
Both parties filed briefs on the motion for summary judgment. Badinger did not file any affidavits. The trial court granted the motion for summary judgment and judgment was entered for the amount sought by Northwestern, which included the principal amount and the interest claimed to be due.
Badinger contends on appeal that the trial court erred in granting summary judgment both as a matter of law and because material factual disputes exist.
Badinger asserts that no interest rate in excess of 6% per annum was "contracted for in writing" as provided in Sec. 47-14-05, N.D.C.C. We disagree. "A specific provision ... for collection of a 'finance charge' satisfies the provisions in Sec. 47-14-05, NDCC." Metric Constr., Inc. v. Great Plains Properties, 344 N.W.2d 679, 682 (N.D.1984). Badinger's assertion that there was no written agreement to pay interest because he did not sign any of the invoices is without merit. Badinger and Northwestern are merchants. Section 41-02-08(2-201), N.D.C.C., provides that, between merchants, "a writing in confirmation of the contract and sufficient against the sender" is enforceable "unless written notice of objection to its contents is given within ten days after it is received." Badinger has not asserted that he objected to the invoices. Therefore there was a written agreement.
Section 47-14-09, N.D.C.C., provides in part:
Because Northwestern was charging interest on interest, Badinger asserts that the trial court erred in granting summary judgment and that, under Sec. 47-14-10, N.D.C.C., Northwestern has forfeited all of the interest claimed to be due and 25% of the principal.
Under Rule 56, N.D.R.Civ.P., a movant for summary judgment must show that there is no dispute as to either the material facts or the inferences to be drawn from undisputed facts and that he is entitled to a judgment as a matter of law on the facts shown. As we said in North Dakota State Engineer v. Schirado, 373 N.W.2d 904, 908-909 (N.D.1985):
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