Holley v. Holley

After divorcing, John Holley (defendant) and Joan Holley (plaintiff) agreed John would pay $1,000 monthly alimony, but after his bankruptcy they settled instead on a $10,000 lump-sum payment plan, with a June 1993 deadline after which the original alimony terms would resume if unpaid. John made payments but missed the deadline; when he later asked Joan for the balance, she quoted an amount that included disputed late charges, and John responded by sending a $750 check marked "Paid in Full plus int. & late ch." Joan crossed out the notation but deposited the check anyway, then later sued John for roughly $336,000 she claimed was owed under the original alimony agreement, arguing she never accepted the check as full satisfaction; the lower courts ruled for Joan.