What is an account stated?

“An account stated is an agreement, based on the prior transactions between the parties, that the items of the account are true and that the balance struck is due and owing from one party to another. When the account is assented to, ‘“it becomes a new contract. An action on it is not founded upon the original items, but upon the balance agreed to by the parties....” Inquiry may not be had into those matters at all. It is upon the new contract by and under which the parties have adjusted their differences and reached an agreement.’” (Gleason v. Klamer (1980) 103 Cal.App.3d 782, 786–787 (citations omitted).)

“An account stated need not cover all the dealings or claims between the parties. There may be a partial settlement and account stated as to some of the transactions.” (Gleason, supra, 103 Cal.App.3d at p. 790, (citation omitted).)

“The essential elements of an account stated are:

  1. previous transactions between the parties establishing the relationship of debtor and creditor;
  2. an agreement between the parties, express or implied, on the amount due from the debtor to the creditor;
  3. a promise by the debtor, express or implied, to pay the amount due.”

(Zinn v. Fred R. Bright Co. (1969) 271 Cal.App.2d 597, 600.)

How to Structure the Motion

“The agreement of the parties necessary to establish an account stated need not be express and frequently is implied from the circumstances. In the usual situation, it comes about by the creditor rendering a statement of the account to the debtor.” (Zinn v. Fred R. Bright Co. (1969) 271 Cal.App.2d 597, 600.)

“If the debtor fails to object to the statement within a reasonable time, the law implies his agreement that the account is correct as rendered.” (Fred R. Bright Co. (1969) 271 Cal.App.2d 597, 600.)

Response

“The account stated may be attacked only by proof of ‘fraud, duress, mistake, or other grounds cognizable in equity for the avoidance of an instrument.’ The defendant ‘will not be heard to answer when action is brought upon the account stated that the claim or demand was unjust, or invalid.’” (Gleason v. Klamer (1980) 103 Cal.App.3d 782, 786–787.)

Useful Rulings on Account Stated

Recent Rulings on Account Stated

PERSOLVE LEGAL GROUP, LLP VS LETICIA HERNANDEZ

On June 5, 2020, Plaintiff filed a complaint, asserting causes of action against Hernandez and Does 1-100 for: Breach of Contract Money Lent Account Stated On November 3, 2020, Hernandez’s default was entered. An Order to Show Cause Re: Failure to Proceed with Default Judgment is set for February 1, 2020.

  • Hearing

CEMEX USA, INC. VS ATILANO, INC., A CALIFORNIA CORPORATION, ET AL.

On August 20, 2020, Plaintiff filed a complaint, asserting causes of action against Corporation, Atilano and Does 1-10 for: Breach of Contract Open Book Account Account Stated Reasonable Value Personal Guarantee On October 16, 2020, Corporation’s and Atilano’s defaults were entered. A Case Management Conference is set for January 22, 2021. Discussion Plaintiff’s Application for Default Judgment is DENIED without prejudice.

  • Hearing

  • Type

    Contract

  • Sub Type

    Breach

AVITUS INC. VS ANDIAMO MANAGEMENT COMPANY, A CORPORATION, ET AL.

On March 11, 2019, Plaintiff filed a complaint, asserting causes of action against Defendants and Does 1-10 for: Breach of Written Promissory Note Open Book Account Account Stated Breach of Personal Guarantee On July 9, 2019, Andiamo’s default was entered; on that date, Plaintiff dismissed Tunzi without prejudice. An Order to Show Cause Re: Failure to Proceed with Default Judgment and a Case Management Conference are set for December 18, 2020.

  • Hearing

FUNDATION GROUP LLC VS BINH NGUYEN, ET AL.

On August 5, 2019, Plaintiff filed a complaint, asserting causes of action against Defendants and Does 1-100 for: Breach of Contract Open Book Account Account Stated Unjust Enrichment On November 18, 2019, Defendants’ defaults were entered. An Order to Show Cause Re: Failure to File Default Judgment Packet is set for December 2, 2020. Discussion Plaintiff’s Application for Default Judgment is GRANTED. The court reduces attorney’s fees to $2,005.74, per Local Rule 3.214.

  • Hearing

  • Type

    Collections

  • Sub Type

    Promisory Note

BLUE TOWN, LLC VS SOUTHWEST SERVICES GROUP, LLC, ET AL.

On March 13, 2020, Plaintiff filed a first amended complaint (FAC) against Southwest Services Group, LLC (Southwest), RT Development, LLC (RT), and Brett Miles, alleging: (1) breach of promissory note; (2) fraudulent inducement; (3) negligent misrepresentation; (4) account stated; and (5) money had and received. Now, Plaintiff moves to strike the answers of both Southwest and RT.

  • Hearing

  • Type

    Personal Injury/ Tort

  • Sub Type

    Fraud

NINGBO JIANGDONG CHUANGGE IMPORT & EXPORT CO., LTD. VS BONITA FABRICS, INC., ET AL.

BACKGROUND The operative Second Amended Complaint (“SAC”) arises from the alleged breach of a contract, alleging causes of action for: (1) breach of contract; (2) breach of oral promise; and (3) common counts—account stated and open book account. Moving Defendant filed a demurrer to the SAC.

  • Hearing

  • Type

    Collections

  • Sub Type

    Collections

WELLS FARGO BANK, N.A. VS JAMES A STEWARTSON

BACKGROUND On January 17, 2020, plaintiff Wells Fargo Bank, N.A. filed a complaint against James A Stewartson for (1), (2) breach of contract, (3) for money lent, (4) for money paid, laid out, and expended, (5) open book account, and (6) account stated. On April 27, 2020, defendant (self-represented) filed an answer. On September 3, 2020, the court granted plaintiff’s motion to deem admitted the truth of the matters in its request for admissions, set one.

  • Hearing

  • Type

    Collections

  • Sub Type

    Collections

COLOREDGE, INC., A DELAWARE CORPORATION, VS EDIE GELARDI, AN INDIVIDUAL,, ET AL.

Final Film filed an Answer and Cross-Complaint (“FFXC”) on March 15, 2019, where Final Film Cross-Complained against Plaintiff in three causes of action sounding in certain 2018 transactions, alleging (1) Breach of Contract; (2) Common Account: Open Book Account; and (3) Common Count: Account Stated. Gelardi filed a Cross-Complaint on June 19, 2019, alleging eleven causes of action sounding in (1) Failure to Pay Equal Pay; (2) Violation of Lab. Code §1197.5; (3) Breach of Contract; (4) Violation of Lab.

  • Hearing

  • Type

    Business

  • Sub Type

    Intellectual Property

PAWNEE LEASING CORPORATION VS SUNDIAL INDUSTRIES, INC., A CALIFORNIA CORPORATION, ET AL.

The complaint, filed September 18, 2020, alleges causes of action for: (1) breach of written agreement; (2) breach of personal guaranty; (3) open book account; (4) reasonable value; (5) account stated; (6) indebtedness; (7) unjust enrichment; (8) claim and delivery; and (9) conversion. B.

  • Hearing

  • Type

    Real Property

  • Sub Type

    Landlord Tenant

  • County

    Los Angeles County, CA

LA LEGENDS LLC, A LIMITED LIABILITY COMPANY VS LOS ANGELES IMMANUEL MISSION CHURCH, A CALIFORNIA CORPORATION, ET AL.

On July 30, 2020, Plaintiff LA Legends LLC commenced this action against Defendants Los Angeles Immanuel Mission Church, Paul Ho Rye, Jongkil Ryu, Jae Gyoo Jang, and Robin Windom for (1) breach of promissory note; (2) common count; (3) account stated; (4) conspiracy to defraud; (5) conversion by forgery; (6) fraud and deceit (promise made without intention to perform); (7) fraud and deceit (intentional misrepresentation); (8) cancellation of instrument; and (9) forgery in violation of Penal Code section 470.

  • Hearing

  • Type

    Personal Injury/ Tort

  • Sub Type

    Fraud

PORTER RENTS, LLC VS NEXTECH CONSTRUCTION, INC., ET AL.

PLAINTIFF’S REQUEST FOR ENTRY OF DEFAULT JUDGMENT BACKGROUND: On July 15, 2020, Plaintiff Porter Rents, LLC commenced this action against Defendants Nextech Construction, Inc. and Seungil Ha for (1) breach of contract; (2) open book account; (3) account stated; and (4) breach of personal guarantee, seeking damages in the amount of $99,598.47. On October 14, 2020, default was entered against Defendants Nextech Construction, Inc. and Seungil Ha. ANALYSIS: The interest rate calculation is slightly off.

  • Hearing

  • Type

    Collections

  • Sub Type

    Collections

CATT PLUMBING INC VS JUNE A GROTHE CONSTRUCTION INC

It alleges causes of action for: (1) breach of written contract (2) account stated (3) goods and services rendered (4) unjust enrichment (5) foreclosure of mechanic's lien (6) violation of Bus. & Prof. Code § 17200, et seq. Only the Fourth, Fifth, and Sixth Causes of Action are alleged against the Subsequent Owner.

  • Hearing

  • Type

    Contract

  • Sub Type

    Breach

CREDITORS ADJUSTMENT BUREAU, INC. VS AEF FREIGHT USA, INC

On April 11, 2019, Plaintiff filed a complaint, asserting causes of action against Defendant and Does 1-10 for: Breach of Contract Open Book Account Account Stated Reasonable Value On June 18, 2019, Defendant’s default was entered. On October 24, 2019, default judgment was granted. On February 27, 2020, the court denied Defendant’s Motion to Set Aside/Vacate Default and/or Default Judgment. Discussion Demidchik Law Firm seeks to be relieved as counsel of record for Defendant (“Client”).

  • Hearing

UP AND RUNNING SOFTWARE,INC., A MICHIGAN CORPORATION VS OBEN, INC., A DELAWARE CORPORATION

Complaint Plaintiff UNR commenced this action on July 17, 2020, alleging causes of action for (1) breach of written contract; (2) breach of oral contract; (3) work, labor, and services rendered; (4) open book account; (5) account stated and quantum meruit; and (6) reasonable value of services rendered. The Complaint alleges in pertinent part as follows.

  • Hearing

FORWARDLINE FINANCIAL, LLC., A CALIFORNIA LIMITED LIABILITY COMPANY VS ANTHONY SEO, AN INDIVIDUAL AND SOLE PROPRIETOR OF ROUND RESTAURANT

On January 9, 2020 Plaintiff filed a Complaint against Defendant for 1) Open Book Account; 2) Account Stated; 3) Reasonable Value; 4) Money Lent; 5) Breach of Written Contract; and 6) Breach of Written Guarantee. Plaintiff now moves for judgment on the pleadings. [Tentative] Ruling Plaintiff Forwardline Financial, LLC’s Motion for Judgment on the Pleadings is GRANTED.

  • Hearing

  • Type

    Collections

  • Sub Type

    Promisory Note

WELLS FARGO BANK, N.A. VS NHAN T NGUYEN

“An account stated is an agreement, based on prior transactions between the parties, that all items of the account are true and that the balance struck is due and owing from one party to the other.” Trafton v. Youngblood (1968) 68 Cal. 2d 17, 25.

  • Hearing

  • Type

    Collections

  • Sub Type

    Collections

FORMOSA FABRIC INC., A CALIFORNIA CORPORATION VS OMID LAVI, ET AL.

Formosa Complaint alleges the following eleven causes of action: (1) breach of contract against Lavitex and Lavi, (2) open book account against Lavitex and Lavi, (3) account stated against Lavitex and Lavi, (4) goods sold and delivered against Lavitex and Lavi, (5) conversion against Lavitex and Lavi, (6) claim and delivery against Lavitex and Lavi, (7) dishonored checks (Civil Code § 1719 against Lavitex and Lavi, (8) fraudulent transfers/conveyance/conspiracy to defraud against all Defendants, (9) fraudulent

  • Hearing

  • Type

    Personal Injury/ Tort

  • Sub Type

    Fraud

PH GLENDALE, LLC, A NEVADA LIMITED LIABILITY COMPANY VS ARCH INSURANCE COMPANY, A MISSOURI CORPORATION

On April 18, 2019, APS filed a cross-complaint against Cobalt for: (1) implied equitable indemnity; (2) comparative indemnity; (3) contribution; (4) declaratory relief; (5) breach of contract; (6) quantum meruit; and (7) account stated. On April 26, 2019, Thyssen filed a cross-complaint against Roes 1-25. On June 13, 2019, this Court granted PHG’s motion to compel arbitration against Cobalt and ordered the parties to meet and confer about appointing qualified arbitrators. (Campbell Decl., Ex. 7.)

  • Hearing

  • County

    Los Angeles County, CA

PAWNEE LEASING CORPORATION VS HAMILTON STAWSON LLC, ET AL.

.: 20SMCV00951 Motion: Applications for Writ of Attachments Hearing Date: 11/13/2020 Factual & Procedural Background On July 21, 2020, Plaintiff Pawnee Leasing Corporation filed a ten cause of action complaint for (1) breach of written agreement; (2) breach of personal guaranty; (3) breach of guaranty; (4) open book account; (5) reasonable value; (6) account stated; (7) indebtedness; (8) unjust enrichment; (9) claim and delivery; and (10) conversion.

  • Hearing

  • Type

    Real Property

  • Sub Type

    Landlord Tenant

SOUTHERN GLAZIERS WINE AND SPIRITS VS FIZZ VEGAS LLC, A DISSOLVED NEVADA LIMITED LIABILITY COMPANY, ET AL.

account stated is based upon an account of more than one item, the time shall begin to run from the date of the last item.”

  • Hearing

  • Type

    Contract

  • Sub Type

    Breach

TRADE CENTER OUTPATIENTS SURGERY, INC. VS DEBBIE MARKS

(Plaintiff) filed a complaint against Debbie Marks (Defendant) and Does 1 through 10, alleging claims for: (1) breach of contract; (2) common count – open book; (3) common count – account stated; and (4) common count – quantum meruit. This matter is related to case number BC524946. The Court issued a stay of proceedings in this matter in September 2019. 1.

  • Hearing

  • Type

    Collections

  • Sub Type

    Collections

EMERY GALAMBOS VS DON PARKER ET AL

Issue No. 5: “Plaintiffs’ third cause of action for account stated fails because Plaintiff has no evidence, nor is there any, showing the parties stated an account that is different from the underlying contract.” “An account stated is an agreement, based on the prior transactions between the parties, that the items of the account are true and that the balance struck is due and owing from one party to another.” (Gleason v. Klamer (1980) 103 Cal.App.3d 782, 786.) This is viewed as a “new contract.” (Ibid.)

  • Hearing

  • Type

    Personal Injury/ Tort

  • Sub Type

    Fraud

GEORGE STEPHAN, ET AL. VS LISA ANN BARKETT, ET AL.

stated; (10) open book account; and (11) action to set aside fraudulent or voidable transfers.

  • Hearing

  • Type

    Personal Injury/ Tort

  • Sub Type

    Fraud

  • Judge Elaine Lu
  • County

    Los Angeles County, CA

BANK OF THE WEST VS. KARAPET MOMDJIAN

On February 10, 2010, Plaintiff filed its complaint against Karapet Momdjian for breach of contract, claim and delivery, account stated and open book account. On July 7, 2018, Plaintiff filed first amended complaint. The first amended complaint added defendants Mega Auto Dismantling, Inc. and Nazaryan Oganos. The clerk entered default against Momdjjian on June 10, 2011. On July 8, 2010, the court, on its own order, set aside the default against Momdijian.

  • Hearing

  • Type

    Collections

  • Sub Type

    Collections

XEROX CORPORATION VS COPY CITY LLC ET AL

Louendo alleging: (1) breach of contract; (2) for money due on an open book account; (3) for money due on an account stated; (4) declaratory relief; and (5) stipulation for entry of judgment. On May 31, 2017, Plaintiff filed a notice of settlement of entire case. On March 11, 2020, Plaintiff moved for an order to enter judgment pursuant to the settlement agreement.

  • Hearing

  • Type

    Real Property

  • Sub Type

    Landlord Tenant

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