For Manhattan businesses, unpaid invoices can quickly disrupt cash flow and threaten financial stability. While traditional breach-of-contract lawsuits are often lengthy and costly, an account-stated claim provides a streamlined legal remedy to collect undisputed debts. At Levy Goldenberg Law, we help companies turn overdue receivables into enforceable judgments efficiently, preserving revenue and maintaining business momentum.
What Is an Account-Stated Claim in New York?
An account stated is a common-law cause of action recognized by New York courts. It arises when a statement of account is rendered for prior transactions, and the recipient retains it without objection within a reasonable time or makes a partial payment. This silence or partial payment implies assent and creates a separate obligation to pay.
Key Elements
- Prior Dealings: A transaction giving rise to a debt or obligation.
- Statement of Account: Invoices, ledgers, or summaries delivered to the debtor.
- Assent: Either explicit agreement or implied assent through failure to object promptly.
- Nonpayment: Despite assent, the debtor fails to pay.
This legal tool allows businesses to bypass complex contract litigation when the debt is clear and undisputed.
When to Use an Account-Stated Claim
Account-stated claims are particularly effective in situations such as:
- Clients or customers who acknowledge invoices but delay payment.
- Long-standing business relationships where partial payments or correspondence demonstrate implied acceptance of debt.
- B2B services in Manhattan, where cash flow is critical, and rapid enforcement is necessary.
By leveraging account-stated claims, businesses can recover unpaid amounts more quickly than through conventional breach-of-contract litigation.
Pleadings and Documentary Evidence
Success in an account-stated action depends on careful documentation. Key evidence includes:
- Invoices and Statements: Clear, itemized accounts demonstrating goods delivered or services performed.
- Correspondence: Emails, letters, or messages confirming that the debtor received and acknowledged the balance.
- Payment Records: Any partial payments or acknowledgments reinforcing the existence of a debt.
- Agreements or Contracts: Underlying contracts showing the terms of payment and services rendered (law.cornell.edu).
Properly documented accounts make it easier to move for summary judgment, often resolving disputes without a full trial.
Summary-Judgment Tactics
A key advantage of account-stated claims is the potential for swift judgment via summary judgment. Manhattan courts may grant summary judgment when:
- There is no genuine dispute regarding the amount owed.
- Evidence clearly shows the debtor acknowledged the account and failed to pay.
- All supporting documents, statements, invoices, and correspondence confirm the debt is valid.
By effectively presenting evidence and limiting contested issues, businesses can obtain faster judgments and reduce litigation costs.
Why Manhattan Businesses Choose Levy Goldenberg Law
At Levy Goldenberg LLP, our team has experience in efficiently resolving commercial disputes, including account-stated claims. We help clients:
- Identify and document valid accounts ready for collection.
- Draft precise pleadings that clearly establish the elements of an account-stated claim.
- Leverage evidence to maximize chances for summary judgment.
- Recover outstanding debts quickly, improving cash flow and protecting business operations.
Our Manhattan litigators understand the local courts, procedural nuances, and best practices to turn unpaid invoices into enforceable judgments with minimal delay.
Taking Action on Overdue Accounts
If your business is struggling with unpaid invoices in Manhattan, waiting can result in lost revenue and unnecessary legal complications. By acting promptly and using an account-stated claim, you can streamline recovery and reinforce your financial position.
Contact Levy Goldenberg Law today to discuss your unpaid receivables. Our experienced team will review your accounts, advise on the most effective legal strategy, and guide you through a process designed to recover what you are owed quickly and efficiently.