Key Takeaway
New York court rules that account stated claims require proper business records foundation under CPLR 4518, not just submission of credit card statements without authentication.
When pursuing an account stated claim in New York courts, plaintiffs must do more than simply submit copies of statements and invoices. The Fourth Department’s decision in Velocity Investments, LLC v Cocina serves as a crucial reminder that even seemingly straightforward documentary evidence must meet strict evidentiary standards to be admissible in court.
An account stated is a legal theory allowing creditors to recover on acknowledged debts, but it requires proper foundation under New York’s business records statute. This case demonstrates how technical evidentiary requirements can derail what appears to be a strong claim, particularly when dealing with business records from the Fourth Department and establishing a prima facie case.
Jason Tenenbaum’s Analysis:
Velocity Invs., LLC v Cocina, 2010 NY Slip Op 06854 (4th Dept. 2010)
“We agree with defendant that Supreme Court erred in granting the motion inasmuch as plaintiff failed to submit nonhearsay evidence to support the cause of action for an account stated. We therefore modify the judgment accordingly. Although plaintiff submitted copies of credit card statements allegedly sent to defendant, who failed to pay or to object to them, plaintiff failed to lay a proper foundation for the admission of those documents as business records pursuant to CPLR 4518 (a) (see West Val. Fire Dist. No. 1 v Village of Springville, 294 AD2d 949), which was the only basis proffered by plaintiff for their admissibility.”
Those who analogize a no-fault action to an account stated cause of action should take a minute to lament at what this case says.
Key Takeaway
The Velocity decision underscores that submitting copies of statements without proper authentication under CPLR 4518(a) is insufficient for account stated claims. Courts require strict compliance with business records foundation requirements, making proper documentation and witness testimony essential for successful debt collection litigation in New York.
Legal Update (February 2026): Since this 2010 analysis of business records admissibility under CPLR 4518, the Civil Practice Law and Rules may have been amended regarding foundational requirements for documentary evidence and account stated claims. Practitioners should verify current CPLR provisions and recent Fourth Department decisions to ensure compliance with any updated evidentiary standards for business records authentication.
