Legal Question in Business Law in California
Statute of Limitations on AR/AP
Nine years ago I provided professional services to a client. His new consultant is reviewing his file for purposes of obtaining cost reimbursment from the California State UST Fund (State fuel tank insurance fund). The new consultant claims that a 9 year old invoice was paid twice by my former client. I disagree, but my old bookeeping software is no no longer functional and I typicall do not keep financial records longer than 7 years. Dose my former client have any legal standing? Thank You.
3 Answers from Attorneys
Re: Statute of Limitations on AR/AP
Forget it, anything over 4 years is now dead for purposes of collection.
Re: Statute of Limitations on AR/AP
The statute of limitations is either 2 or 4 years, depending on whether the agreement was oral or in writing, respectively. Tell him/her to leave you alone.
Re: Statute of Limitations on AR/AP
Were the professional services legal or accounting? The statute of limitations for legal malpractice is tolled while the lawyer continues to represent the client on the subject of the malpractice. Code of Civil Procedure (CCP) section 340.6.
The limitations period for accountant malpractice is two years; court cases say it comes under CCP section 339.1 (oral contract). Whether and why this is always so I don't know; it seems to me that some accounting malpractice issues could arise from written contracts, but the cases I've seen apply 339(1).
If the issue is whether the double payment can be recovered from the state, I'd say it can't be compelled but if proven the fund might reimburse your former client voluntarily.
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