Check the Check

The Texas Supreme Court held in Bryant Law Firm v. Walker that a party cannot avoid an accord and satisfaction by crossing out release language on a check and then depositing it anyway.

An attorney refunded fees to a former client, with a check, on which the “memo” line said that cashing it “represents a full & final settlement and release of all claims.” The client crossed out that language before depositing the check and later sued the attorney for additional damages.

The Court found that the elements of the statutory accord and satisfaction defense under Texas Business and Commerce Code Section 3.311 were conclusively established: the attorney tendered the check in good faith as full satisfaction, a bona fide dispute existed as to the amount owed, the check contained a conspicuous statement of release, and the client obtained payment with actual knowledge of the condition.

Striking through the notation on a check “does not relieve [the payee] of the legal consequence of negotiating it and depositing it into his account.” Relying on more than a century of precedent, the Court reaffirmed that mutual assent is satisfied when a party accepts a negotiable instrument with knowledge it is offered as full payment and then proceeds to negotiate it. No. 25-0131 (Tex. May 8, 2026).