Legal Question in Credit and Debt Law in California

I'm a small business owner and the billing software I had been using has not been great. I discovered that a number of my customers haven't been billed for services, yet have continued to use my services monthly and did not notify me that they had not been receiving invoices. My billing policy states that payment is due at the time invoice is issued.

How far back can I legally bill them for? From what I understand, the statue of limitations is 4 years. However, does this apply to this situation, where they have not yet been invoiced?

I live in California.


Asked on 5/18/10, 2:23 am

1 Answer from Attorneys

David Gibbs The Gibbs Law Firm, APC

A four year statute of limitations is for a dispute based on a written contract. Do you have (aside from invoices) a written contract with these clients? If not, then the statute of limitations might actually be two years. I would suggest that you go back and bill the client for whatever they owe. If they voluntarily pay it, then great. If they don't, then you may not be able to go back and sue them for everything they owe based on the statute of limitations. You may want to contact them first to work something out, as being hit with an invoice for several years work is not going to go over well, and you may well lose them as clients. You'll have to evaluate what is best - hoping to collect the money, or losing a client.

*Due to the limitations of the LawGuru Forums, The Gibbs Law Firm, APC's (the "Firm") participation in responding to questions posted herein does not constitute legal advice, nor legal representation of the person or entity posting a question. No Attorney/Client relationship is or shall be construed to be created hereby. The information provided is general and requires that the poster obtain specific legal advice from an attorney. The poster shall not rely upon the information provided herein as legal advice nor as the basis for making any decisions of legal consequence. As required by 11 U.S.C. �528, we must now disclose that, "We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code. Assistance we provide with respect to Debt Relief may involve bankruptcy relief under the Bankruptcy Code."

Read more
Answered on 5/26/10, 10:05 am


Related Questions & Answers

More Credit, Debt and Collections Law questions and answers in California