Legal Question in Business Law in California

Re: Overpayment - Statue of Limitations

A claim based upon a contract in writing has a four-year statute of limitations.

Figuring when the statute begins to "run" is the tricky part. Obviously, perhaps, it's not the date of the contract. Generally, for purposes of a suit on the original contract, the four years will begin at the time of a material breach, i.e., the point at which you first had a viable claim for breach.

However, it isn't that simple. In many cases where a debtor-creditor relationship exists, a suit can be brought, not on the underlying contract, but for breach of a later-made contract involving "book account" or "account stated," where, for example, the creditor has billed the debtor and the debtor has acknowledged the debt by failing to object to the amount and/or making small payments. If there is some writing supporting such exchanges, it can be found that a new contract is formed based upon a promise to pay the debt, and a new clock starts to tick.

So, if you are a prospective plaintiff, take your file to a contracts or business attorney and ask pointedly whether these theories would support a suit where the statute has already run on part or all of your claim.

Re: Overpayment - Statue of Limitations

California law was thoroughly covered by Mr. Whipple. I only write to point out that your contract with the credit card processor might have a choice of law provision that would apply the law of a different state. For example, it might say the that laws of the home state of the processor my apply instead of California law. Thus, you definitely need to have a local business attorney read the entire contract.

Federal banking laws might be implicated hear because of the electronic transaction, so the attorney you retain should research any federal regulations that might apply.

Re: Overpayment - Statue of Limitations

Probably four years from the last transactions and billings from them. Try to negotiate it reasonably on your own, but you might consider having an attorney look at the facts and documents, then represent you in the discussions. If the presense of an attorney makes them be more realistic and keeps them from suing, you are probably money ahead. Contact me if interested in doing so.