How To Prove A California Failure to Pay A Debt (Account Stated) Claim

 

How To Prove A California Failure to Pay A Debt (Account Stated) Claim

 

In California, a claim of Failure to Pay A Debt (Account Stated) is defined as:

Failure to repay a debt, which can include the principal, interest, or both, within the timeframe established through a contractual obligation.

It simply means:

A person is liable if they do not pay a debt according to the terms of a contract.

There are 5 elements of the claim:

  • Element 1. The defendant owed the plaintiff money from a previous financial transaction. The defendant borrowed money from the plaintiff in the past and has not paid it back, which is a key part of the claim that the defendant failed to settle their debt.

    Facts that might support this element look like:

    * The defendant received a loan of $5,000 from the plaintiff on January 15, 2023, which was documented in a signed promissory note.
    * The defendant made partial payments totaling $2,000 towards the loan but has not made any payments since March 2023.
    * The plaintiff provided the defendant with an itemized statement of the outstanding balance, which the defendant acknowledged as accurate.
    * The defendant has not disputed the validity of the debt or the amount owed at any time since the transaction occurred.
    * The plaintiff and defendant had a prior business relationship, during which the defendant consistently paid debts owed to the plaintiff.

  • Element 2. The plaintiff and defendant, by words or conduct, agreed that the amount that plaintiff claimed to be due from the defendant was the correct amount owed. The plaintiff and defendant both acknowledged, either through their conversations or actions, that the amount the plaintiff said was owed by the defendant was accurate and agreed upon.

    Facts that might support this element look like:

    * The defendant acknowledged receipt of the plaintiff’s invoice and did not dispute the amount owed within the specified timeframe.
    * During a conversation, the plaintiff and defendant discussed the outstanding balance, and the defendant agreed that the amount was accurate.
    * The defendant made partial payments towards the claimed amount, indicating acceptance of the debt as stated by the plaintiff.
    * The plaintiff provided a detailed account statement, which the defendant reviewed and did not contest, implying agreement on the balance.
    * The defendant’s silence in response to the plaintiff’s repeated requests for payment suggested acceptance of the claimed amount as correct.

  • Element 3. The defendant by words or conduct, promised to pay the stated amount to the plaintiff. The defendant clearly indicated, either through their words or actions, that they would pay the agreed amount to the plaintiff, which is an important part of proving a claim for not paying a debt.

    Facts that might support this element look like:

    * The defendant acknowledged the outstanding balance during a conversation with the plaintiff, stating, “I will pay you the full amount by the end of the month.”
    * In an email, the defendant confirmed receipt of the invoice and expressed intent to settle the debt promptly.
    * The defendant made a partial payment and explicitly stated, “This is just the first installment; I will pay the rest soon.”
    * During a meeting, the defendant assured the plaintiff, “You can count on me to pay the total amount owed.”
    * The defendant sent a text message saying, “I promise to pay you the remaining balance next week.”

  • Element 4. The defendant has not paid the plaintiff any (or all) of the amount owed under this account. The defendant has not paid the plaintiff any or all of the money they owe for a specific account, which is a key part of the claim that the defendant failed to pay a debt.

    Facts that might support this element look like:

    * The defendant has not made any payments towards the outstanding balance on the account since the last invoice was issued.
    * The plaintiff has sent multiple reminders to the defendant regarding the overdue amount, but no payments have been received.
    * The defendant acknowledged the debt in writing but has failed to remit any payment to the plaintiff.
    * The account statement provided by the plaintiff clearly shows a balance due, which remains unpaid by the defendant.
    * Despite the plaintiff’s efforts to resolve the matter, the defendant has not communicated any intention to pay the outstanding debt.

  • Element 5. The amount of money the defendant owes plaintiff is stated. In a Failure to Pay a Debt claim, one key point is that the defendant must owe a specific amount of money to the plaintiff, which has been agreed upon or acknowledged by both parties.

    Facts that might support this element look like:

    * The defendant received an invoice from the plaintiff detailing the amount owed, which was acknowledged by the defendant.
    * The defendant made partial payments towards the total amount, indicating recognition of the debt.
    * The plaintiff provided a statement of account to the defendant, which the defendant did not dispute.
    * The defendant communicated in writing that they accepted the amount stated in the plaintiff’s account summary.
    * The plaintiff and defendant had a prior agreement that specified the total amount due for services rendered.

(See California Civil Jury Instructions (CACI), No. 373. Leighton v. Forster (2017) 8 Cal. App. 5th 467, 491. Zinn v. Fred R. Bright Co. (1969) 271 Cal. App. 2d 597, 600.)
If you’re in court without a lawyer and plan to assert a Claim of Failure to Pay A Debt (Account Stated), having a Personal Practice of Law at Courtroom5 is essential. You’ll need to make informed decisions about what to file at each phase of your case and prepare legal documents supported by thorough legal research and a strong analysis of the facts. Equip yourself with the tools and knowledge to effectively navigate your legal journey.

Prove Your CA Failure to Pay A Debt (Account Stated) Claim

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