This article discusses the cause of action for an open account under Florida law. “In commercial transactions, an ‘open account’ should refer to an unsettled debt, arising from items of work or labor, goods sold and other open transactions not reduced to writing, the sole record of which is usually the account books of the owner of the demand.” H & H Design Builders v. Travelers’ Indem. Co., 639 So. 2d 697, 700 (Fla. 5th DCA 1994) (citation omitted). “It should not include express contracts or other obligations that have been reduced to writing.” Id.
“In Florida, an open account has been defined as an ‘unsettled debt arising from items of work and labor, goods sold and delivered with the expectation of further transactions subject to further settlement.’” Cent. Ins. Underwriters, Inc. v. Nat’l Ins. Fin. Co., 599 So. 2d 1371, 1373 (Fla. 3d DCA 1992) (quotation omitted). The elements of the cause of action of open account are: (1) the plaintiff provided a series of services to the defendant, with respect to which an unsettled debt was generated; and (2) the unsettled debt was generated in a context were the plaintiff expected additional transactions with the defendant; and (3) the unsettled debt remains unresolved. H & H Design Builders, 639 So. 2d at 700; Cent. Ins. Underwriters, Inc., 599 So. 2d at 1373.
“In order to state a valid claim on an open account, the claimant must attach an ‘itemized’ copy of the account.” H & H Design Builders, 639 So. 2d at 700 (citation omitted). “An obligation does not become an ‘open account’ simply because the amount due under a contract requires calculation.” Id. “An obligee under a contract cannot avoid the requirement of pleading and proving a cause of action based on a contract by placing its demand on a ‘statement of account’ and mailing it to the obligor.” Id. In H & H Design Builders, the Court found that the statement of account attached to the complaint by the plaintiff, which only stated the lump-sum balance allegedly due and not the items on which the claim was based, did not state a cause of action for an open account. Id.
“The elements of a claim for goods sold and delivered on an open account in Florida . . . [are] proof of a sales contract between the creditor and debtor, and proof that the amount claimed by the creditor represents either the agreed upon sales price or the reasonable value of the goods actually delivered.” Alderman Interior Sys. v. First National-Heller Factors, 376 So. 2d 22, 24 (Fla. 2d DCA 1979) (citation omitted).
“Although . . . actual proof of delivery and acceptance can create an inference of the existence of the sales contract, it is clear that a claimant also must prove delivery of goods and show either an agreement upon sales price or that amounts claimed represent the reasonable value of the goods actually delivered.” Alderman Interior Sys., 376 So. 2d at 24 (citation omitted). “[T]he burden is on the obligee to show that all of the conditions to the guarantor’s liability had occurred or had been performed.” Id. (citation omitted).
Author Gulisano Posted on Categories Cause of Actions, Civil LitigationAddress
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