We previously discussed some of the issues presented in Scheck Indus. Corp. v. Tarlton Corp. We will now turn to discussing the matter of an account stated, as presented in briefs. Scheck Indus. Corp. v. Tarlton Corp., 2014 WL 2116407 (Mo. Ct. App., E.D.). Although the initial discussion in the appellant’s brief concerning an account stated is quite lenghty, there seems to be some inadequacy in addressing the normal treatment that a failure to object to an accounting provided is not dispositive.
In brief, the case involves a subcontractor that took certain acts in remediation of construction problems. It appears that some time sheets for remediation work were signed on behalf of the prime. The additional remediation costs were not paid by the client. The sub claims there is an account stated that entitles it to the amounts referenced in the statements.
Judgment was entered against the sub following a bench trial. Sub appealed. Sub claims there is an account stated, and, as a result, sub is entitled to payment. It would seem that the succinct analysis would be something like the following:
An account stated arising from sending statements and acknowledging time sheets would not necessarily entitle an alleged obligee to payment. Even if the acts of the prime are taken as acknowledging the accuracy of the time sheet computations, it would be a question of fact as to whether obligation to pay the amounts was understood to be conditional–whether the sub actually under the contract was owed the amounts. “Because the debtor’s new promise is enforceable only to the extent it is co-extensive with its actual antecedent debt, it is necessary for the creditor to establish the existence and amount of this antecedent debt when the debtor denies the basis for an account stated.” Corbin on Contracts § 72.1 (Through December 2013; Release No. 13S2). So, to reverse the outcome, an appellant would have to meet the heavy burden to demonstrate the findings were reversible error.
We can see the initial brief’s discussion, and subsequent analysis and discussion, after the break:
More after the break ….