Key Takeaway
Court ruling clarifies that account stated claims require admissible evidence and proper foundation, marking shift from earlier no-fault insurance precedent.
The concept of “account stated” plays a crucial role in debt collection and insurance reimbursement cases. An account stated is a legal theory where parties agree on the balance due on an account, either explicitly or through conduct like making partial payments without dispute. This doctrine has particular relevance in no-fault insurance cases, where medical providers seek payment from insurers for services rendered.
The evidentiary standards for proving an account stated have evolved through New York case law. While earlier precedents suggested that strict admissibility requirements might be relaxed in certain contexts, recent decisions have clarified the foundational requirements needed to establish these claims in court. Understanding these standards is essential for both plaintiffs seeking to recover on accounts and defendants challenging the sufficiency of evidence presented.
Jason Tenenbaum’s Analysis:
Discover Bank v Maler, 2014 NY Slip Op 50144(U)(App. Term 2d Dept. 2014),
A no-fault bill was once analogized to an account stated. In Etienne, we learned that admissible proof was not necessary to prove the account that was stated.
Now, in Discover Bank v Maler, we learn that an account stated requires proof in admissible form:
“The record discloses no evidentiary error warranting reversal. A proper foundation was established for the admission of the billing statements generated by plaintiff, since its witness was sufficiently familiar with plaintiff’s corporate records and its record keeping procedures “to aver that the records what purport to be and that came out of files” (DeLeon v Port Auth. of NY & N.J., 306 AD2d 146, 146 ).”
Key Takeaway
The Discover Bank v Maler decision represents a significant shift in evidentiary standards for account stated claims. Unlike the earlier Etienne precedent, courts now require admissible evidence with proper foundation to establish an account stated. This means witnesses must demonstrate sufficient familiarity with record-keeping procedures to authenticate billing statements and corporate records, creating a higher bar for successful debt collection actions.
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